Solar Incentive Programs, Tax Breaks, and Rebates in Oregon
In Oregon, post-tax credit, the average solar panel setup costs $17,290 and the state effectively encourages solar adoption, with costs slightly below the national average.
State and local financial incentives are available in Oregon, yet the federal solar investment tax credit (ITC) remains the largest factor in reducing the overall cost of going solar.
Utilizing the ITC, you are able to deduct 30% of the system’s total expenses from your federal income taxes, such as equipment, labor, and permits. For instance, you can receive a $6,000 tax credit for a system that costs $20,000 when you file your taxes.
Oregon Solar Incentive Programs
The solar tax credit is not a type of rebate or refund; you must claim it on your federal tax return for the year in which your solar panel system became operational.
To accomplish this, you must complete Form 5695. In addition to being nonrefundable, the credit is applied to future years if it exceeds your federal tax liability.
If you are a customer of Portland General Electric or Pacific Power, you can receive an upfront rebate of $1,200 or $900, accordingly, if you own your solar system and partnered with an approved contractor.
Depending on your location, you may be eligible for additional incentives from NW Natural, Cascade Natural Gas, or Avista, in addition to city-level programs.
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Oregon Solar + Storage Rebate Program
Oregon’s Solar + Storage Rebate Program is currently the state’s largest solar incentive.
The OSSRP program aims to make solar energy more accessible, particularly for residents with low and moderate incomes. These rebates are applied as discounts to the system’s net price. After installation, the Oregon Department of Energy (ODOE) offers rebates to approved contractors.
Residents can save up to $5,000 on solar and $2,500 on solar coupled with battery storage. Residents with low incomes can save up to $30,000 on solar panels and $15,000 on storage systems. Each year, at least 25% of the rebate funds are set aside for low-income organizations.
Source: CONSUMERAFFAIRS
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