Eugene, OR Solar Panels

Oregon’s Property Tax Exemption for alternative energy systems allows homeowners to add solar panels or other renewable energy systems to their property without increasing their property taxes. When you install a qualifying system, the added value it brings to your home is exempt from property tax assessment. This means you won’t pay additional property taxes on the increased home value that results from your solar installation, allowing you to enjoy the benefits of clean energy without the typical property tax increase.

To qualify for this exemption, your solar system must either be registered as a net metering facility (connected to the grid with the ability to send excess power back) or be primarily designed to offset your onsite electricity use. The system must be installed at your property and used for heating, cooling, or generating electricity for your personal consumption. Eligible solar components include photovoltaic panels, inverters, mounting systems, wiring, and battery storage. However, structures like sunrooms, solariums, and greenhouses do not qualify for the exemption.

There are no specific deadlines mentioned for claiming this exemption, and it continues for as long as you own the qualifying system. The exemption applies automatically to the real market value added by your alternative energy system. This incentive works alongside other available programs to make solar energy more affordable for Oregon homeowners, reducing the overall cost of ownership while you generate clean, renewable energy for your home.

Oregon does not have a general sales tax, which means homeowners who purchase and install solar energy systems in Oregon are not charged state sales tax on their solar equipment or installation services. Unlike residents in most other states who pay sales tax rates typically ranging from 5-10% on solar purchases, Oregon homeowners automatically avoid this additional cost at the point of sale.

This exemption applies to all Oregon residents purchasing solar systems, as it’s simply part of Oregon’s tax structure rather than a special solar-specific program. There are no applications to submit, income requirements to meet, or deadlines to worry about. The financial benefit varies based on your system size—for example, on a $25,000 solar installation, you’d save approximately $1,250 to $2,500 compared to what you’d pay in neighboring states with sales tax. This makes Oregon particularly attractive for solar investments, as your upfront costs are lower from day one.

PGE’s Smart Battery Pilot is a utility program that rewards Oregon homeowners for allowing their home battery systems to support the grid during peak energy demand times. When you enroll, PGE can charge or discharge your battery during high-demand periods (typically 10-15 times per year on the hottest or coldest days). You earn $1.70 per kWh of battery capacity you make available during each scheduled Peak Time Event. Your battery remains fully available for backup power during outages, and you’re always in control of how much energy you share.

To qualify, you must be a PGE customer with one of the approved battery systems: Tesla, SolarEdge, Enphase, FranklinWH, Duracell, or Eguana. You don’t need solar panels to participate—standalone batteries are eligible. After your battery is installed, you’ll receive a link to connect it to PGE’s grid and start earning bill credits. There are no current deadlines mentioned for enrollment in this ongoing pilot program.

Important considerations: PGE will never request power from your battery during an outage, as your home’s needs take priority. You can opt out of any scheduled grid event if needed. If you’re installing a new battery, you may also qualify for cash incentives through Energy Trust of Oregon’s solar and storage programs, with higher amounts available for income-qualified households. Contact an Energy Trust of Oregon solar trade ally to explore your options and get installation bids.

Net metering is a billing arrangement in Oregon that allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the grid. When your solar system produces more energy than your home uses during sunny periods, your electric meter essentially runs backward, and you earn credits at the retail electricity rate. These credits then offset the cost of power you draw from the grid during nighttime hours or cloudy days when your panels aren’t producing enough energy.

The financial benefit of net metering means you only pay for your “net” energy use—the difference between what you consume from the grid and what your solar system contributes back. This can significantly reduce or even eliminate your monthly electric bills, depending on your system size and energy usage patterns. Oregon utilities are required to offer net metering to eligible customers, making it a reliable way to maximize the value of your solar investment.

To qualify for net metering in Oregon, your solar system must meet your utility’s interconnection requirements and typically cannot exceed your home’s average annual electricity consumption. Most residential solar installations qualify automatically, though you’ll need to complete an interconnection agreement with your utility company. There are no application deadlines, as net metering is an ongoing program available to all eligible solar customers in the state.

It’s important to understand that net metering policies can vary slightly between different Oregon utilities, and some may have specific rules about how long credits can be carried forward or how they’re valued. Your solar provider can help you navigate your specific utility’s net metering terms to ensure you’re getting the maximum benefit from your system.