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 exempt from property tax assessment. This means you won’t pay additional property taxes on the increased home value that comes from your solar investment.

The exemption applies to the full value of qualifying solar energy systems installed on residential properties. There’s no dollar limit on the exemption, so whether your system adds $15,000 or $30,000 to your home’s value, none of that increase will be subject to property taxes. To qualify, your solar system must be certified and primarily used to heat, cool, or provide electricity for your home. The exemption continues for as long as you own the system and it remains operational, providing ongoing tax savings throughout the life of your solar installation.

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. There are no eligibility requirements, applications to file, or deadlines to meet – the benefit applies to all solar purchases made within Oregon. However, if you’re an Oregon resident purchasing solar equipment from out-of-state retailers, you should be aware that some states may still try to charge their sales tax, though Oregon law doesn’t require you to pay use tax on items brought into the state for personal use.

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’s 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 as a pilot program, availability may be limited.

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 maintain complete control over your participation. This program works well alongside other incentives like Energy Trust of Oregon rebates and the 30% federal tax credit for battery systems. If you don’t have a qualifying battery yet, you can work with Energy Trust solar installers to get one installed and connected to the program.

Net metering in Oregon is a billing arrangement that allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses during sunny periods, that extra power flows to the grid and your utility company gives you credits on your electric bill. These credits can then be used to offset the electricity you draw from the grid when your panels aren’t producing enough power, such as at night or during cloudy days.

The financial benefit of net metering works like a one-to-one credit system in most cases, meaning you receive the same rate for the electricity you send to the grid as you pay for electricity you use from the grid. However, specific rates and credit structures can vary by utility company in Oregon. Most utilities allow you to carry forward unused credits from month to month, though policies on annual credit rollovers differ between providers. To be eligible, you typically need a solar system that meets your utility’s interconnection standards and size requirements, which are usually based on your home’s historical energy usage.