Solar Guide

Oregon’s Property Tax Exemption for solar energy systems allows homeowners to install solar panels without increasing their property taxes. When you add a solar system to your home, the added value from the solar installation is completely exempt from property tax assessment. This means you get all the benefits of increased home value from solar without paying higher property taxes on that added value.

The exemption applies to the full value of your solar energy system, including panels, inverters, batteries, and installation costs. There are no income limits or system size restrictions for this exemption. The benefit continues for as long as you own the solar system, making it a long-term financial advantage. Homeowners should ensure their solar system is properly permitted and meets Oregon’s renewable energy standards to qualify for this exemption.

Oregon’s Sales Tax Exemption for solar energy systems is actually quite straightforward – Oregon doesn’t have a general state sales tax at all. This means when you purchase solar panels, inverters, batteries, and other solar equipment in Oregon, you won’t pay any state sales tax on these items. This is different from most other states that charge sales tax (typically 4-10%) on solar purchases and then offer exemptions.

Since Oregon has no sales tax to begin with, homeowners automatically save money on their solar installation compared to residents in sales tax states. For example, on a $20,000 solar system, you’d avoid paying $1,000-$2,000 in sales tax that residents in other states might face. There are no eligibility requirements, applications to file, or deadlines to meet – this benefit applies to all solar purchases made within Oregon. Keep in mind that if you purchase solar equipment from out-of-state retailers, you should verify whether that state’s sales tax applies to your purchase, as Oregon cannot reduce your Oregon taxes for sales tax paid to other states.

PGE’s Smart Battery Pilot is a utility program that allows Oregon homeowners with qualifying battery systems to earn money by sharing stored energy with the grid during peak demand periods. When energy demand is highest (typically 10-15 times per year during very hot or cold days), PGE can access a portion of your battery’s stored energy to help support the electrical grid. You maintain full control over how much energy you’re willing to share, and your battery always remains available for backup power during outages.

Participants earn $1.70 per kWh for each Peak Time Event they participate in, with payments appearing as bill credits. You can choose different participation tiers based on what percentage of your battery capacity you’re comfortable sharing. To qualify, you must have one of the approved battery systems: Tesla, SolarEdge, Enphase, Generac, FranklinWH, Duracell, or Eguana. The program launched in 2020 and there are no mentioned deadlines, but it’s described as a pilot program which suggests it may have limited duration or capacity.

Important considerations include that PGE will never access your battery during power outages – your backup power needs always take priority. You can opt out of any grid dispatch request, and severe weather conditions that might cause outages will prevent your battery from being used for grid support. This program works well alongside other incentives like Energy Trust of Oregon rebates and the 30% federal tax credit for battery systems.

Net metering in Oregon is a billing arrangement that allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the grid. When your solar system produces more power than your home uses during sunny periods, that extra energy flows to your neighbors through the utility grid, and you receive credits on your electric bill at the retail rate you normally pay for electricity.

The financial benefit works like a one-to-one exchange – for every kilowatt-hour (kWh) of excess solar energy you send to the grid, you receive a credit worth the same amount you would pay to buy that kWh from your utility company. These credits roll over month to month, so you can use summer solar production to offset winter electricity usage when your panels generate less power. Most Oregon utilities are required to offer net metering to residential customers with solar systems up to 25 kilowatts in size, though specific program details and availability may vary by utility company. Homeowners should check with their local utility to confirm net metering availability and any specific requirements or limitations that may apply to their situation.