Portland, 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 completely exempt from property tax assessment. This means you get all the benefits of increased home value from your solar installation without paying higher property taxes on that improvement.

To qualify for this exemption, your solar system must either be set up as a net metering facility (where excess energy is sent back to the grid) or be primarily designed to offset your onsite electricity use. The system must be used for heating, cooling, or generating electricity for your personal consumption. Eligible systems include solar photovoltaic panels, solar heating and cooling systems, geothermal heat pumps, wind turbines, micro hydropower systems, fuel cells, and methane gas systems. The exemption applies to all components that add real market value to your property, including solar panels, inverters, mounting systems, batteries, and related equipment.

There are no application deadlines or time limitations mentioned for this exemption—it remains in effect as long as you own the qualifying system. However, it’s important to note that certain structures like porches, sunrooms, solariums, and greenhouses typically do not qualify for the exemption, even if they incorporate passive solar design. This exemption works automatically through your property tax assessment process, providing ongoing savings year after year by preventing your property taxes from increasing due to your renewable energy investment.

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 4% to 10% on solar purchases, Oregon homeowners automatically avoid this additional cost at the point of sale.

This isn’t technically an exemption that you need to apply for—it’s simply the absence of a sales tax in Oregon. There are no forms to complete, no eligibility requirements to meet, and no deadlines to worry about. Every solar purchase in Oregon benefits from this advantage. For a typical residential solar system costing $20,000 to $30,000, this means you’re already saving $800 to $3,000 compared to what homeowners in neighboring states with sales tax would pay. Keep in mind that if you purchase solar equipment from an out-of-state seller, that seller may still charge their state’s sales tax unless you provide them with an Oregon Business Registry Resale Certificate (if you’re buying for resale purposes). For standard residential installations purchased through Oregon-based solar companies, you’ll simply pay no sales tax as part of your normal transaction.

PGE’s Smart Battery Pilot is a utility program that rewards Oregon homeowners for allowing their home battery system to support the grid during peak energy demand periods. When you enroll, PGE can charge or discharge your battery during high-demand times—typically 10 to 15 times per year on the hottest or coldest days. Your battery remains fully available for backup power during outages, and you maintain control over how much energy you share with the grid.

You earn $1.70 per kilowatt-hour (kWh) for each Peak Time Event you participate in, with bill credits applied to your account. You choose your participation level based on what percentage of your battery’s capacity you’re comfortable contributing. The program works with qualifying battery systems from Tesla, SolarEdge, Enphase, FranklinWH, Duracell, and Eguana.

To qualify, you must be a PGE customer with one of the approved battery systems installed at your home. Solar panels are not required—you can participate with a standalone battery. If you don’t have a battery yet, you can work with an Energy Trust of Oregon solar trade ally to install a qualifying system, which may be eligible for Energy Trust cash incentives (with higher amounts for income-qualified households). PGE will never request power from your battery during an actual outage, as your home’s backup power needs always take priority.

Net metering is a billing arrangement that allows Oregon homeowners with solar panels to receive credit for the excess electricity their system sends back to the grid. When your solar panels produce more energy than your home uses during the day, that surplus power flows to the utility grid, and your electric meter essentially runs backward. You then use these credits to offset the cost of electricity you draw from the grid during times when your panels aren’t producing enough power, such as at night or on cloudy days.

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 to it. This can significantly reduce or even eliminate your monthly electric bills, depending on your system size and energy usage patterns. In Oregon, most utilities credit you at or near the retail rate for the electricity you export, making solar a more economically attractive investment. The specific crediting structure and any applicable fees may vary by utility provider, so it’s important to check with your local electric company to understand the exact terms that apply to your home.