Solar Incentives in Oregon
Oregon homeowners installing solar in 2026 can access several active state-level programs. The Oregon Department of Energy administers the Oregon Solar + Storage Rebate Program, which provides upfront rebates paid through ODOE-approved contractors: up to $5,000 for a solar system and up to $2,500 for paired storage, with higher per-watt rates available to low- and moderate-income households. Oregon also exempts the added property value attributable to a solar installation from ad valorem property taxation, meaning a solar system should not increase a homeowner's property tax bill. All Oregon electric utilities — investor-owned, public, municipal, and cooperative — are required to offer net metering for residential systems up to 25 kW, crediting exported generation against consumption on a kilowatt-hour basis; excess credits carry over monthly for up to 12 months, and the specific value of remaining credits varies by utility. Customers of Portland General Electric and Pacific Power may also access the Energy Trust of Oregon's solar incentives or subscribe to the Oregon Community Solar Program for off-site generation credits; rates and eligibility details for both are set under Oregon Public Utility Commission oversight and vary by utility and project.
At the federal level, the residential Clean Energy Credit under Internal Revenue Code §25D — commonly described as the 30% solar tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). Homeowners installing a new residential system in 2026 do not qualify for that credit, which meaningfully extends payback periods compared to prior years when the federal credit offset a substantial share of installed costs.
Oregon's residential electricity rate averaged approximately 14.89 cents per kilowatt-hour as of March 2026, down slightly from the prior year. At that rate, the bill savings generated by an on-site solar system — combined with available state rebates and the property-tax exemption — determine how quickly a system recoups its cost; without the federal credit, that calculation depends more heavily on state and utility-level benefits than it did before 2026.
Figures here are verified as of June 2026 against official sources; programs change with each legislative session and utility rate case, and the Oregon Department of Energy (oregon.gov/energy) and Oregon Public Utility Commission (oregon.gov/puc) are the authoritative sources for current program details.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Oregon
Oregon Solar + Storage Rebate Program
The Oregon Department of Energy issues rebates for residential solar electric systems and paired energy storage, paid to ODOE-approved contractors who pass the savings to the customer up front. Homeowners can receive up to $5,000 for solar and up to $2,500 for storage, with larger per-watt rates reserved for low- and moderate-income households. After earlier rounds used up funding, ODOE announced $1.1 million in recovered funds and is reopening reservations on June 15, 2026; a contractor must reserve the rebate before installation begins.
| Amount | Solar: low/moderate-income $1.80/W DC up to 60% of net cost or $5,000; other homeowners $0.20/W (if also eligible for a utility incentive) or $0.50/W (if not), up to 40% of net cost or $5,000. Storage: $300/kWh up to $2,500 (60% of net cost for LMI, 40% otherwise). |
|---|---|
| Who qualifies | Oregon homeowners (and low-income service providers) installing solar or paired solar+storage on real property in Oregon through an ODOE-approved contractor; reservation required before construction; LMI tier requires income verification. |
| Administered by | Oregon Department of Energy |
Source: HB 2618 (2019); ODOE program page Official source →
Alternative Energy Systems Property Tax Exemption
Oregon exempts alternative energy systems from ad valorem property taxation, including solar systems that are net-metered or primarily designed to offset on-site electricity use, as well as community solar projects. The exemption equals any increase in the property's real market value attributable to the alternative energy system, so adding solar does not raise the owner's property tax bill. Under current law the exemption may not be allowed for property tax years beginning after July 1, 2029.
| Amount | 100% exemption of the value added to the property by the alternative energy system (real market value with the system minus value without it). |
|---|---|
| Who qualifies | Property equipped with a solar, geothermal, wind, water, fuel cell, or methane gas energy system used for heating, cooling, or generating electricity that is a net metering facility (ORS 757.300) or primarily offsets on-site use; also community solar projects (ORS 757.386). |
| Administered by | County assessors / Oregon Department of Revenue |
Source: ORS 307.175 Official source →
Oregon Net Metering
Since 1999 all Oregon electric utilities — investor-owned, public utility districts, municipal utilities, and cooperatives — must let customers install on-site renewable generation and net the output against their consumption. Systems may be up to 25 kW for residential customers and 2 MW for commercial customers. When a customer exports more kWh than they consume in a billing period, the excess carries forward as a kWh credit for up to 12 months; any credit remaining at the end of the 12-month period is transferred to customers in the utility's low-income assistance programs.
| Amount | kWh-for-kWh netting against consumption; excess generation carried over monthly as kWh credits for up to 12 months, then donated to low-income assistance programs. |
|---|---|
| Who qualifies | Customers of any Oregon electric utility with on-site renewable generation up to 25 kW (residential) or 2 MW (commercial). |
| Administered by | Oregon Public Utility Commission (investor-owned utilities); consumer-owned utilities administer their own tariffs |
Source: ORS 757.300; OPUC renewable resources page Official source →
Oregon Community Solar Program
The Oregon Community Solar Program lets customers of Portland General Electric, Pacific Power, and Idaho Power subscribe to a share of an off-site community solar project and receive credits on their utility bill for their portion of the project's generation. The program is overseen by the Oregon Public Utility Commission and is designed for customers who cannot or prefer not to host their own system, such as renters; at least 10 percent of program capacity is reserved for low-income participants.
| Amount | Per-kWh bill credits at utility-specific rates set under PUC oversight; credits vary monthly with project output. Subscription fees and credit rates are reviewed by the PUC. |
|---|---|
| Who qualifies | Electric customers of Portland General Electric, Pacific Power, or Idaho Power in Oregon; 10% of program capacity reserved for low-income customers. |
| Administered by | Oregon Public Utility Commission (via contracted program administrator) |
Source: ORS 757.386; OPUC Dockets AR 603 and UM 1930 Official source →
Energy Trust of Oregon Renewable Energy (Solar) Incentives
Under a 1999 Oregon law, Energy Trust of Oregon — a nonprofit overseen by the Oregon Public Utility Commission — provides financial incentives and technical support for solar and other renewable energy projects on behalf of Portland General Electric and Pacific Power customers. For customers of these two investor-owned utilities, Energy Trust cash incentives are the main ongoing solar rebate alongside the state's ODOE rebate. Incentive amounts vary by project, customer type, and current funding; see Energy Trust for current rates.
| Amount | Varies by project and customer type; set by Energy Trust of Oregon under OPUC oversight. |
|---|---|
| Who qualifies | Customers of Portland General Electric and Pacific Power installing qualifying solar or other renewable energy systems. |
| Administered by | Energy Trust of Oregon (nonprofit overseen by the Oregon Public Utility Commission) |
Source: OPUC renewable resources page (1999 law, SB 1149 restructuring) Official source →
Compare solar incentives across all states → · Check what applies to you →
Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.