The Federal ITC Expired — What Oregon Offers Instead
The 30% federal residential solar tax credit (Section 25D) ended on December 31, 2025. For Oregon homeowners going solar in 2026, there is no federal check, no federal income tax offset, no extension. The program is done. Anyone still quoting a "30% credit" on a residential system in 2026 is quoting a policy that no longer exists.
Oregon, fortunately, is one of the better-positioned states for life after the ITC. The Oregon Department of Energy (ODOE) administers a direct cash rebate, the state mandates 1-to-1 net metering through its investor-owned utilities, and property tax exemption applies automatically. Stacking these programs does not replace the full 30% federal credit, but it softens the blow significantly compared to a state with zero state-level support.
Oregon State Tax Credits & Rebates
Oregon's flagship residential program is the Oregon Solar + Storage Rebate Program, administered by ODOE. Funded by the state legislature and renewed in most biennial budgets since 2020, the program provides a direct rebate paid to the contractor (not a tax credit you claim on your return).
Oregon Solar + Storage Rebate (2026)
Rebate amounts depend on income and whether you install solar only, storage only, or both. As of the current program year: low- and moderate-income households can receive up to $5,000 for solar and up to $2,500 for paired storage. Above-moderate-income households receive reduced amounts (roughly half the low-income tier). Funding is appropriated annually and has run out mid-year in past cycles — apply early.
To qualify, your installer must be on ODOE's approved contractor list, and the system must meet program equipment standards. Income eligibility is verified by household AGI, with thresholds tied to state median income. Rebate applications are submitted by the contractor, and the rebate is deducted from your invoice before installation begins.
The previous Residential Energy Tax Credit (RETC) sunset in 2017 and has not been reinstated. Do not confuse historical RETC references with current programs; RETC no longer exists for solar.
Property Tax Exemption for Solar
Oregon law exempts residential solar photovoltaic systems from property tax assessment. Under ORS 307.175, the added value of a qualifying alternative energy system is not included in your real market value for tax purposes. This applies as long as the system is installed on property used primarily as a dwelling.
The exemption is administered at the county level. Most assessors apply it automatically when a building permit for solar is filed, but if your assessment rises after installation without the exemption reflected, file form 150-310-088 with your county assessor and include a copy of your permit and interconnection agreement.
Sales Tax Exemption for Solar Equipment
Oregon has no statewide sales tax, so there is no sales tax to exempt. This is a meaningful structural advantage: on a $20,000 system, Oregon residents save roughly $1,200-$2,000 compared to residents of states with 6-10% sales tax. Do not let this be overlooked in cost comparisons against Washington or California quotes.
Net Metering Policy in Oregon
Oregon requires investor-owned utilities (IOUs) to offer net metering under a 1-to-1 credit structure for systems up to 25 kW (residential) and 2 MW (commercial). The three regulated IOUs — Portland General Electric (PGE), Pacific Power, and Idaho Power — all offer full-retail-rate net metering for residential customers.
Oregon Net Metering: 1-to-1 Retail Credit
Excess generation is credited to your next bill at the full retail rate. If annual credits exceed consumption by year-end, the utility purchases the surplus at avoided cost (~$0.04/kWh) or donates it to the low-income assistance fund, depending on your election. This is a strong, stable policy — among the best in the West.
Consumer-owned utilities (PUDs, electric co-ops) set their own net metering rules. Most offer 1-to-1 credits but with smaller annual caps. Eugene Water & Electric Board (EWEB), Salem Electric, and Springfield Utility Board all publish their net metering tariffs online. Rural co-ops like Consumers Power and Douglas Electric generally follow similar structures but vary on annual true-up treatment.
Time-varying rates are not yet default for residential solar customers in Oregon, which simplifies ROI math compared to California's NEM 3.0. If PGE or Pacific Power opts customers into TOU rates in coming years, solar-only (no-battery) customers may see reduced savings. For now, 1-to-1 is the baseline.
Utility-Specific Rebates
Energy Trust of Oregon is the ratepayer-funded nonprofit that administers efficiency and solar incentives for PGE, Pacific Power, NW Natural, and Cascade Natural Gas customers. For residential solar, Energy Trust offers production-based incentives ranging from $0.20 to $0.40 per watt depending on system type and customer income, stackable with the ODOE rebate.
Eugene Water & Electric Board (EWEB) runs its own Solar Electric Program for customers. Incentive levels are lower than Energy Trust but available to EWEB customers who are not covered by Energy Trust. Check eweb.org/solar for current rates.
Emerald Peoples Utility District and Central Electric Cooperative have offered one-time solar rebates in past program years. Availability varies. Contact your member services line before assuming a rebate applies.
Low-Income Solar Programs
The ODOE Solar + Storage Rebate prioritizes low- and moderate-income households with its highest tier ($5,000 solar / $2,500 storage). Eligibility is tied to 80% of state median income or below for low-income, and 80-120% for moderate-income. Documentation (tax returns, benefit enrollment letters) is submitted with the application.
Oregon Energy Fund operates a low-income solar installation pilot in partnership with community action agencies and Habitat for Humanity. Capacity is limited — typically a few dozen households per year — but recipients receive fully subsidized systems. Contact your local community action agency to see if you are eligible.
For manufactured home park residents, the Community Solar Bill Credit Program reserves a carve-out for income-qualified subscribers who cannot install rooftop solar. This pairs well with Oregon Housing & Community Services weatherization programs.
Solar for Renters & Community Solar
Oregon launched a formal Community Solar Program in 2017 (authorized by SB 1547). The program allows residents to subscribe to a share of an off-site solar project and receive bill credits on their utility account. Projects are developed by third-party sponsors and approved by the Oregon Public Utility Commission.
Subscribers pay a monthly subscription fee to the project owner and receive a credit on their PGE, Pacific Power, or Idaho Power bill representing their share of the project's production. Net-of-fee savings typically run 5-10% on your electric bill. A 10% capacity carve-out is reserved for low-income subscribers at discounted rates.
Several Oregon community solar projects are currently accepting subscribers; the Community Solar Program dashboard at oregoncsp.org lists active projects by utility territory. Renters, condo owners, and homeowners with shaded roofs are the primary audience for this program.
Sizing for Oregon's Climate
Oregon's solar resource is surprisingly good outside the heavily-cloud-covered coastal fringe. Portland averages 3.9 peak sun hours per day year-round; Medford, 4.7; Bend, 5.2. A 7 kW south-facing system in Portland produces about 8,900 kWh annually. In Medford, the same array produces 10,300 kWh. East of the Cascades is genuinely sunny.
Oregon's winter production is low (December insolation in Portland is only 15-20% of July's), which drives annual totals down. Homes with significant winter electric heat (heat pumps, resistance) may see larger bills in January-February even with solar, because production is lowest when consumption is highest. This is normal — do not oversize the system to cover winter; oversizing just means exporting summer production you could have used yourself.
Expected Monthly Production in Oregon
| Location | Winter Low (kWh/mo) | Summer Peak (kWh/mo) | Annual Total (kWh) |
|---|---|---|---|
| Portland | 300-400 | 1,000-1,150 | ~8,900 (7 kW) |
| Medford | 420-520 | 1,250-1,400 | ~10,300 (7 kW) |
| Bend | 470-580 | 1,300-1,480 | ~11,000 (7 kW) |
| Eugene | 330-420 | 1,050-1,200 | ~9,200 (7 kW) |
Seasonal swings in Oregon are large. In Portland, July production is 3-4x December production. Net metering credits accumulated in summer carry through winter under Oregon's annual true-up. Time your true-up date (you can request it to align with your highest-usage month) to maximize rolling credits through winter.
Oregon vs. Neighboring States
Oregon's combination of a direct rebate (ODOE), production-based incentive (Energy Trust), 1-to-1 net metering, and zero sales tax makes it one of the best-structured incentive stacks on the West Coast post-ITC. Compare to Washington (no cash rebate, but sales tax exemption; similar climate) and California (no state rebate, NEM 3.0 with lower export credits, higher electricity rates). Oregon's tradeoff is lower retail electricity rates and cloudier western climate, which mean each kWh offset saves less money than the same kWh offset in California.
For income-qualifying households, Oregon's $5,000 ODOE rebate + Energy Trust incentive stack is particularly strong relative to any neighboring state. For above-moderate-income households, the stack is more modest but still meaningfully better than Washington or Idaho.
Bottom Line: Should You Go Solar in Oregon in 2026?
Oregon remains one of the better residential solar markets on the West Coast in 2026, despite the loss of the federal ITC. The combination of the ODOE rebate (up to $5,000), Energy Trust production-based incentive, 1-to-1 net metering, property tax exemption, and zero sales tax adds up to a meaningful stack. Payback periods typically run 11-13 years for middle-income households and 8-10 years for low-income households who qualify for the top rebate tier.
Apply for the ODOE Solar + Storage Rebate early in the program year — funding has run out mid-cycle in past years. Confirm your contractor is on the ODOE Approved Contractor List before signing. Watch the Energy Trust incentive level at your sign-up date; it has stepped down over time and may continue to decline. If you are above the moderate-income threshold, the economics are still positive but less dramatic; run numbers for your actual electric usage, not a generic average. If you are in the Portland metro with significant tree cover or a complex roof, consider community solar as an alternative that delivers most of the benefit without hardware on your roof.
Common Oregon Solar Pitfalls to Avoid
A few recurring mistakes show up in Oregon solar contracts. First: not verifying that your installer is ODOE-approved at the time of contract signing. Approved Contractor status can lapse if an installer misses recertification; only approved contractors can submit your ODOE rebate application. Get the installer's approval number in writing and verify it on the ODOE website before signing.
Second: oversizing. Oregon's 1-to-1 net metering has an annual true-up, and credits remaining at true-up are forfeited. A common sales tactic is proposing a system that generates 105-115% of historical usage. This wastes $1,500-$3,000 of hardware and provides no extra bill savings. Size to 90-100% of historical annual kWh, not more.
Third: assuming the quoted price includes Energy Trust of Oregon's incentive. Some installers show the pre-incentive price, some show post-incentive; clarify in writing. Fourth: ignoring roof condition. If your roof needs replacement in the next 5-7 years, reshingle first, then install solar. Removing and reinstalling panels for a reroof costs $1,500-$3,000 and is not covered by ETO or ODOE.
Fifth: not applying for the property tax exemption if your county requires it to be filed. Most Oregon counties apply it automatically, but a few do not. Check with your county assessor within 60 days of installation to confirm the exemption is reflected on your next assessment.
Recommended Equipment for Your Solar Setup
Whether you are going grid-tied with battery backup or planning a DIY add-on, here are three products we have tested and currently recommend. Prices and availability change daily on Amazon.
- Emporia Vue Gen 3 Energy Monitor — whole-home energy monitoring with solar production tracking. Essential for verifying your net-metering credits match utility bills.
- Enphase IQ Battery 5P — 5 kWh AC-coupled battery, pairs with any inverter, useful when your utility caps net metering or time-of-use rates make export unfavorable.
- Renogy 400W Solar Panel Kit with Charge Controller — for outbuildings, RVs, or as a supplemental off-grid setup not tied to your utility interconnection.
Affiliate links. We earn a small commission if you purchase. No extra cost to you.
How to Stack Incentives: 7 kW System Example
Example: 7 kW system in Portland, OR, PGE customer, moderate-income household.
- • System cost at $3.10/watt installed: $21,700
- • Federal ITC: $0 (expired Dec 31, 2025)
- • ODOE Solar + Storage Rebate (moderate-income, solar only): -$2,500
- • Energy Trust of Oregon incentive ($0.30/W on 7,000 W): -$2,100
- • Sales tax: $0 (Oregon has no sales tax)
- • Property tax exemption (avoided added value): ~$2,200 saved over 20 yrs
- • Net metering at 1-to-1: ~$1,250/yr bill savings (at $0.14/kWh PGE avg, 8,900 kWh production)
- • Net out-of-pocket year 1: $17,100
- • Simple payback period: ~12.7 years
- • 25-year net savings after payback: ~$20,400
Notes: Rebates stack but apply sequentially — ODOE rebate comes off the contract first, then Energy Trust incentive. Low-income households qualify for $5,000 ODOE rebate (not $2,500), which cuts payback to ~11 years.
Frequently Asked Questions
What is the Oregon Solar + Storage Rebate?
A state-funded direct rebate administered by the Oregon Department of Energy, providing up to $5,000 for solar and $2,500 for storage to qualifying low- and moderate-income households. Above-moderate-income households get roughly half those amounts. The rebate is paid to the contractor and deducted from your invoice.
Can I stack the ODOE rebate with Energy Trust of Oregon incentives?
Yes. The ODOE rebate and Energy Trust of Oregon production-based incentive are designed to stack. Both apply to the same system. Your installer handles the paperwork for both, and the combined reduction appears on your contract.
Does Oregon have net metering?
Yes. Oregon requires 1-to-1 retail-rate net metering for residential systems up to 25 kW through Portland General Electric, Pacific Power, and Idaho Power. Consumer-owned utilities set their own rules but most follow a similar 1-to-1 structure.
Do I pay sales tax on solar equipment in Oregon?
No. Oregon has no statewide sales tax. This saves roughly $1,200-$2,000 on a typical residential solar system compared to states with sales tax on solar equipment.
Will my property taxes increase after installing solar in Oregon?
No. Oregon Revised Statute 307.175 exempts the added value of solar photovoltaic systems from property tax assessment. Most counties apply the exemption automatically when a solar permit is pulled.
Learn More About Solar Incentives and Costs
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