Salem, OR Solar Panels

Oregon’s Property Tax Exemption for alternative energy systems allows homeowners to install solar panels and other renewable energy systems without increasing their property taxes. When you add a qualifying solar system to your home, the added value it brings to your property 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 (connected to the grid with the ability to send excess power back) or be primarily designed to offset your home’s onsite electricity use. The exemption applies to the real market value that the solar system adds to your property, including solar panels, inverters, mounting systems, wiring, and battery storage. This is an ongoing benefit that continues for as long as you own the system—there are no time limits or expiration dates. Note that structures like sunrooms, solariums, or greenhouses do not qualify for this exemption, even if they provide passive solar heating.

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 equipment or installation. Unlike residents in most other states who must pay sales tax (typically 4-8% of the total system cost) on solar purchases, Oregon homeowners automatically avoid this expense. For a typical residential solar installation costing $20,000-$30,000, this represents an automatic savings of $800-$2,400 compared to what homeowners in sales tax states would pay.

Since Oregon has no sales tax system, there are no applications, forms, or exemption certificates required for solar purchases. This benefit applies automatically to all Oregon residents purchasing solar equipment, whether buying from local installers or out-of-state vendors. However, if you’re an Oregon resident shopping in another state that has sales tax, you should consult that state’s policies regarding nonresident purchases, as Oregon does not issue sales tax exemption certificates for use in other states.

The Smart Battery Pilot is a program from Portland General Electric (PGE) that rewards Oregon homeowners for allowing their home battery systems to support the grid during peak energy demand. When you enroll, PGE can charge or discharge your battery during high-demand periods—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 control how much energy you’re willing to share.

You’ll earn $1.70 per kilowatt-hour (kWh) for each Peak Time Event you participate in, with payments appearing as bill credits. The amount you earn depends on your battery’s capacity and how much you choose to contribute. For example, if PGE uses 10 kWh from your battery during an event, you’d earn $17 in credits.

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, though batteries paired with solar are eligible. Energy Trust of Oregon offers cash incentives for battery installations, with higher amounts available for income-qualified households. There are no enrollment deadlines mentioned, as this is an ongoing pilot program.

Important considerations: PGE will never use your battery during an outage—your home’s backup power always takes priority. You can opt out of any scheduled event if needed, giving you complete control. If you already have a non-qualifying battery, you can still save money by participating in PGE’s separate Peak Time Rebates program instead.

Net metering is a billing arrangement that allows Oregon 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 power than your home uses—typically during sunny midday hours—your electric meter essentially runs backward, and you earn credits on your utility bill. These credits can then offset the cost of electricity you draw from the grid during evenings, cloudy days, or winter months when your panels produce less energy.

Unfortunately, we don’t have specific program details available at this time regarding the exact credit rates, eligibility requirements, or enrollment deadlines for Oregon’s net metering program. We recommend contacting your local utility company directly to learn about their specific net metering policies, including how credits are calculated, whether they roll over month-to-month, and any system size limitations that may apply. Your utility can provide the most current information about participating in their net metering program and help you understand the financial benefits based on your specific situation.