Rebates & Tax Credits Reduce Cost of Solar Panels in Oregon: Solar Incentives

These initiatives are designed to increase green energy use, in both residential and business locations, which lower carbon emissions, help people become energy independent and also boost job sector economics.

Solar incentives are simply financial incentives that local government, federal or a state provide to regulate the use of fossil fuels, in order to reduce greenhouse gases.¹

Different states are more solar-friendly than others, and they offer different types of incentives.⁸

This guide explains the Oregon solar incentives available for residents in the state, as well as the options for reducing fossil fuel grid energy use by powering your home using the rays of the sun and photovoltaic cells.

Oregon Solar Panels: Daylight Hours

Solar panel is a device that converts light from the sun into electricity.

There are five main uses of solar energy, they include solar lighting, solar water heating, solar ventilation, solar electricity and solar heating.

The cost of application of solar energy is reducing every year due to its popularity.

Benefits of Solar Panels

• Solar panels are renewable energy, they therefore help the environment by doing away with harmful domestic emissions and also reduce carbon footprint
• Your home can be lit all year round as long as there is Sun, and is also an investment that can last you up to 25 years
• You can be able to make money through solar renewable energy credits (SRECs)
• Solar panels need to be installed and for this case, it creates jobs for people in the locality

Solar Panels: Oregon Stats

Oregon is one of the 10 states that have been experiencing wildfires. The year 2020 is the year when the worst wildfire happened as recorded in Oregon’s history.²

This is why the state has been encouraging its people to go solar, as solar can withstand extreme weather conditions.

Installing solar panels in Oregon is a legal action. There are strict rules and regulations that have been put in place to make sure those residents are being protected from any restriction by anyone.⁹

But you should keep in mind that:

• Your contractor is the one that handles your solar permit that is important to operate a PV system
• House owners associations (HAOs) are not allowed to restrict any solar panel installation in Oregon
• People that are supposed to install your solar panel must hold a license for that

Oregon Solar Incentives 2022

There are solar incentives programs in the state of Oregon. This allows the local people and businesses at large to have access to solar and also allows them to save money.

People in the Oregon state are able to access Investment Tax Credit (ITC) and cash incentives to help lower the prices of installing solar and interconnection.

In order to qualify for Oregon solar incentives 2022, you must own a property that is within the state of Oregon. And also work with Energy Trust of Oregon solar Incentive contractors.

Extension of the ITC was passed by the federal government in the year 2020, where a 26% tax credit was provided for systems that were installed in 2020 – 2022.

Incentive	Description
Solar Rebates in Oregon	Up to $7,800 are provided to homeowners that have decided to go solar
Oregon Property Tax Exemption	Oregon state relieves individuals from part or all of their property taxes when they install solar panels in their homes. However this offer expires in mid-2023
State Sales Tax Exemption	The state tax sale is not available in Oregon but the exemption only applies to solar arrays
Net Metering in Oregon22	This incentive allows homeowners to use the excess energy that they export to the grid on credit; they will pay it in their next power bill
Federal Solar Tax Credit	Oregon residents have access to Federal Tax Credit. 30% is given back to you in your next Federal Tax return. This offer expires in the year 2032 in December

Free Solar Panels Oregon

There is no program in Oregon that provides people with free solar panels. The solar incentives in Oregon make it very cheap for anyone to purchase.

However there are some programs that make this action appear free, but the reality is that you will end up paying for power purchase agreement or your solar lease.

But, you can get your solar through solar rebates. This is where you pay approved contractors to help you install the system.

These same contractors are the ones to advise or show you potential solar savings such as Energy Trust of Oregon Incentive or Federal tax credit.¹⁰

The money that you paid to the contractor will be passed on to you as savings. And also, do not pay any advance amount; the cost of the system will be taken from your savings.

Solar Panels for Home: How Many Solar Panels You Need for Your Home?

Deciding to install solar in your home might be the best decision that you have ever made. Let us look at it this way; you are able to save on your electricity bill depending on where you live.

You can never run out of electricity as long as there is availability of the sun.

On top of that all, you are contributing to saving the environment by reducing the carbon emission from the atmosphere since solar energy is a renewable energy.

How much solar power you need in your home, depends on factors like the number of sunshine hours in your area, the amount of electricity that you are currently using, your roof capacity and your energy goals. All these factors depend from house to house.

To calculate your solar needs, you have to check your electricity bills, you can decide to calculate month by month or yearly in kWh.

Plan on how much electricity you want to cover when using your solar panel, you have to be careful as this decision will affect the cost and size of your solar panel.

Lastly, calculate the solar panels that can actually fit your roof. But always remember to include 30cm from the edge of the roof, and adjust the size of the system if there is not enough space for the panels that you had calculated earlier.

Does Solar Increase Home Value? Cost of Solar Panels in Oregon

Installing solar panels increases the value of your property by reducing the carbon footprint and the energy cost in your homes. Your home value increases $20 for every $1 cut in your yearly energy bills,³ this is according to the Appraisal journal.

This means that if your solar energy helps you to save $500 in a year, then your home value is increased to $10,000. Hence answering the question, ‘‘does solar increase home value?’’

Energy efficiency is considered as the most important feature in a home and this is why sellers and real estate agents increase the price of asking homes, because they are able to get profit from them.

Factors Influencing the Added Value of Solar Homes

Below is a list of factors influencing the added value of solar homes.

#1 Local Solar Market

There are states like Oregon that have put strict laws in restricting homeowners to install their solar panels. On top of that they offer solar incentives like investment tax credit or Energy Trust Incentives, therefore making their installation cheaper and their homes being sold at a higher price.

Unlike other states that are not supported in the solar panel installation nor any tax exemption given to them. The installation process is therefore costly, and the rate at which they market their homes is very low.

The solar energy industrial association has put together some of the states like California that have the best market for solar panels.¹¹

#2 Age of the Solar System

If you want to buy a home with solar energy, you should check the condition of the solar system. If you don’t then you will end up paying for repairs that can cost you a lot of money.

Most solar systems have a warranty of about 25 years while some can stay up to 40 years.

The system will not be of help to you so much if it is older than 10 years. It is the responsibility of the seller to always check and maintain the system because if you don’t, you might end up selling your home at a very cheap price.

#3 Electricity Rates in Your Region

Solar energy makes it possible for you to be independent when it comes to electricity. You will also be able to save money and also your electricity bills.

The solar battery that the system has enables you to save excess energy to the grid throughout the day and light your home at night.

#4 Solar Panel Ownership

There are two ways that homeowners can transfer their ownership, through solar leasing or full payment. It is much easier for the buyer to get their homes knowing that the system is theirs.

You will have to invest in a large amount of money if you have decided to take the solar system with the full payment.

When you lease the solar system, this means that the solar panel belongs to the solar company. Meaning, the new owner will have to take over in paying the panel from where the seller left, up to when the contract would have ended.

Oregon Solar Tax Credit: Oregon Solar Incentives

Solar electricity can be very much expensive and some individuals are not able to install solar without help.

But states like Oregon, have made it easy for the residents to afford as there are different Oregon solar incentives, cost of solar panels in Oregon, and tax credits that are available for them.

For example on December 31st there was credit on Oregon state taxes that were entitled to help recover expenses.⁴

How Does the Solar Tax Credit Work If I Don’t Owe Taxes?

Solar tax credit is a non-refundable that is worth 30% of the amount you are going to use in your solar system application project. It is important to note that this policy is not the same for commercial and residential properties, and they tend to decrease as the year passes by.

These taxes that people pay the government, helps to ensure that public services are maintained and are properly functioning. How does the solar tax credit work if I don’t owe taxes?

If you do not owe the government any taxes and you qualify for a tax credit, then the solar tax credit will not be of importance to you as you will not have any amount of money to which the credit can be applied to.

Expenses Covered Under Solar Tax Credit Program

• The assembly cost
• Sales taxes on the purchasing of the solar equipment
• Solar PV cells and PV panels that are used to generate power
• Balance of system equipment including inverter and battery
• Inspection cost

Free Solar Panels Oregon: Cost of Solar Panels in Oregon

Who would not want their solar systems to be installed free and just given for free? For those who always expect free things from the government, or from some programs then there is bad news for you.

There are no free solar panels in Oregon.

Although there are some programs that make it seem free, you will have to pay for some costs for your solar panel to be adequately installed by the professionals. There have been several Oregon solar incentives, and the cost of solar panels in Oregon.

The Energy Trust solar incentive also helps residents who have decided to install their solar panels.

These programs make it a little bit cheaper for them to go solar in this region. People that live in Oregon have taken advantage of these incentives, where almost 140,000 households have decided to reduce their electricity bills and be independent with solar energy.

How To Get Solar Panels for Free

You can be able to get financial assistance and incentives during your process of adding value to your home by installing renewable energy. How to get solar panels for free can come in the form of financial programs, tax credits or even incentives.

You are able to benefit from energy efficient financing if you are rebuilding,¹² buying, remodeling or just selling your home.

Energy Efficient Mortgage can help you qualify for a more expensive home if you are shopping for an energy efficient home. Low income households are helped to reduce their energy efficieny costs by the department of energy weatherization assistance programs.

They do this by increasing the energy efficiency in their homes.

Solar Panel Energy Consumption in Oregon

The cost of solar panels depends on several factors. People are increasingly becoming more environmentally friendly, and tend to save their money on electricity bills, thus increasing the value of their properties.

For this reason, the solar of yesterday is a fiction of today.

If you want to go solar, then the time is now or you will just be left as prospective buyers who read the old newspapers. Although the cost of a solar panel varies each year, it also depends on several factors such as the manufacturer, the size of the solar that you would like to install and also how easy the installation would be.

The cost of solar panels in Oregon is usually calculated in kilowatts. Let us now look at a calculation example of solar panel cost.

The average system size in Oregon is 5 kilowatts, and the cost of kilowatt per kg is $3,300 in the initial. Therefore it will be 5 x $3,300 which gives $16,500 of the initial cost that you pay before the incentives.

The payback period for solar systems in Oregon is usually 8 to 12 years, meaning that you will be able to save a lot of money than you think, and also benefit by paying a small amount of money for your electricity bills.

The quality of the solar equipment that you use can also affect the cost of the solar panel. It is up to you to choose a system that goes hand in hand with the budget you have at the moment.

When you use high-end equipment like Solaria solar panels, Enphase energy microinverters and the Sunpower solar panels, you will end up using more money.

However there are more affordable solar equipment including the Hyundai solar panel, Silfab solar panels and Enphase ensemble battery.

Solar Panel Installation Cost

The electrical demand that you may have, and the solar panel that you will choose are the key factors in determining the cost of your solar panel. There are payments that you pay in this process that are related to the labor of your solar installation,⁷ and other small important things that are needed in order for your solar panel to be installed.

Below are some of the factors that will determine the Oregon solar incentives, cost of solar panels in Oregon.

Local Costs: Licensing, Interconnections and Tax Incentives

How much you pay for your local licensing will depend on the local regulations in the region that you live. Interconnection cost is the cost that you will use when you want to interconnect your solar to the local power grid, this cost will not be necessary if you want to go off-grid.

Tax incentives are the support that qualified home owners are given by the state to help them afford the solar system installation.

Roof Angle and Type

The angle of the roof should face the direction where there is maximum amount of sunlight. This will only happen if the roof is not flat, but if it is then, the contractor will have to build another roof structure.

However, there are some roof types that need a lot of labor from contractors and materials thus piling up the solar panel installation cost.

Choice of Your Solar Panel Contractor

When you have gotten to this point, this means that you might have gone through different solar energy companies with their quotes.¹³ You noticed that other companies have higher prices than the others.

Sometimes it is better to invest in quality solar panels that you are sure will last you for long without any complications.

And make sure before you purchase the solar system, check the warranty that the equipment might have. Also ask the company whether they will provide a contractor, or you will be the person to find someone that can help with the installation process.

Structural Issues

This is the first thing that you need to consider before installing your solar panel. If the structure you currently have is old, then you will have to replace it.

Failure to consider this, wiring of your solar panels might end up being damaged.

Solar Panel Installation: How To Install Solar Panel

You may save some cash if you decide to install the solar panel on your roof yourself rather than contacting a contractor.

Have a clear instruction plan and measures that you are going to use before installing the equipment.

But before that, make sure that you purchase any materials that were not included in the shipment, inspect the shipment just to make sure that nothing is damaged or missing. Unbox your system while you are organized and lastly, check the safety guidelines manual before you start the installation.

Below is a step by step guide on how you can install your solar panel:

#1 Solar Panel Mount Installation

Fixing the solar system mount will support the base of the solar system. Depending on the requirements that you may have, the mount can either be flush mount or roof-ground mount.

The angle at which the mounting structure is, should be in the direction where there is maximum amount of sunlight for solar to function well.

#2 Install the Solar Panels

Mount the solar panel on the mounting structure and make sure to tighten the bolts and nuts to keep the whole structure in place.

#3 Electrical Wiring

MC4 connectors are the ones that are mostly used as they can be connected with any type of solar panels. Shut off all the households electricity supply in your house before you start the installation process.

You can do the electrical wiring by either connecting it in series connection and parallel connection.¹⁴

The voltage in parallel connections remains the same as you connect the positive terminals with the positive terminals, and the negative terminals with the negative terminals. However the voltage in the series connection increases.

You connect the negative terminal of the first battery to the positive terminal of the second battery and so on.

#4 Connect the Solar Inverter

The system should be connected to the solar inverter and then to grid input, and the solar battery to produce electricity. The solar inverter needs a cool place, and so you can decide to put it outside or inside the house.

But if you decide to place it outside, then you should keep it out from the afternoon sun. Placing the inverter indoors is mostly recommended as it is usually cool inside the house all year round.

#5 Start Solar Inverter

Now that you have done all the connections carefully without missing any step, it is time to start the inverter. Switch on the main switch in your home and test the newly installed solar panel system.

Oregon Green Energy

Green energy is the energy that is generated from natural resources such as water, sunlight or wind. Oregon uses all of these resources to generate electricity.

Almost 4% of the people living in the Oregon state have embraced the solar system installation in their homes,⁵ while the number of solar system usage keeps on improving every year.

Types of Green Energy

• Solar energy: This is where electricity is produced from sunlight. Photovoltaic solar energy uses photovoltaic plates to convert the rays of the sun into electricity
• Hydraulic energy: Hydroelectric plants are used to convert the kinetic energy of the water to electricity
• Geothermal energy: This is the kind of energy that does not depend on the atmosphere to produce electricity. They get their heat from the earth and convert it into energy

Advantages of Green Energy	Disadvantages of Green Energy
1. Greenhouse gasses and harmful carbon dioxide will not be omitted to the environment, and therefore environmental issues like climate change and global warming are controlled	1. Generation and energy needs do not much. There is much sunlight used in the morning compared to the evening
2. The residents in the Oregon state are electricity independent and are able to save a lot of money on electricity bills	2. Bad weather conditions make it hard for the green energy to be reliable since they only depend on natural sources
3. From the word renewable energy, it is not expected to be deleted anytime soon. Let us look at it in this manner, the sun is always expected to shine every morning and sets in the evening, for how many years now	3. There is a high initial cost if you have decided to use renewable energy as your electricity. But the Oregon government has come in handy, as it provides Oregon solar incentives for these people to help the technologies grow
4. If you have already installed your green energy in your home, you are less likely to use a lot of money to maintain and also require less technology	4. A lot of space is required to establish renewable energy farms and the ecocost can be considerable
5. Green energy is a clean energy. Meaning there are no or less emissions while producing energy	5. Green energy can also emit harmful carbon dioxide during the mining, manufacturing and disposal process

Federal Energy Credits: Oregon Solar Incentives

Energy credit is a non-refundable credit that is 30% of your total amount of gross system during the installation of your solar system. Meaning if your gross system is $30,000 then your credit tax will be $30,000 x 30% = $9000.

It is important to note that solar tax credit is a credit that has the aim to decrease what you owe the Federal income tax credit. It means that if you had installed a $30,000 gross system, your tax credit is lowered by $9000 and the remaining credit is rolled into the future tax years.

You can combine federal energy credits with other Oregon solar incentives.

Federal Solar Tax Credits: How To Claim

To claim the federal incentive tax credit, you need to fill form 5695 for that tax year.²¹ Your tax credit can be rolled over the future tax years if you are not able to claim the whole credit.

Below is a step-by-step process on how you can claim your federal solar tax energy easily.

1. You need receipts for your solar installation, a pencil and a calculator. Calculate how much your solar tax credit is worth
2. Roll over any remaining credit you have from the previous year’s taxes
3. Know whether you have any limitations to your tax credit or not
4. If you have any tax credit from the previous year, then roll it over to your future year tax return
5. Lastly, you should apply the amount found in form 5695 to your tax bill

Federal Solar Tax Credit: Misconceptions

1. The federal tax credit amount is not calculated from the gross cost: Calculating the federal incentive tax credit is against the rules in the IRS.¹⁵
   If you have received financial incentives for the installation of your solar system, then you must subtract the 30% worth gross cost before calculating. Otherwise, you might end up paying tax bills for someone else
2. Not everybody can benefit from the federal solar tax credit: This is true because for you to be in a place to benefit in this lucrative financial incentive, you must owe the federal state income taxes
3. You are not issued a refund check by the federal solar tax credit: Let us say that your gross system for installing your solar is $30,000.
   After you claim the 30% from the incentive tax credit, the amount that you will remain with is $9000. Unfortunately, you will not be given back this money; rather it will be used to decrease the tax liability that you may have

How Much Are Solar Panels in Oregon?

This technology which advances every year in the world, affects the prices of solar systems in the world. But how much are solar panels in Oregon?

This state has been comparing solar panel costs across the country of the US.

The cost of the solar panel should not be the only equation that you think about when it comes to installing the solar panel, there are other costs like installing and permitting fees that need to be paid. This is one of the reasons why the cost has always been put into cost-per-watt format instead of getting it at a retail price.

However, the average cost of solar panels for residents is $24,700 even before you get your 30% federal incentive tax credit and 2.60 per watt. The initial amount of money that you pay when installing your solar panel is what we call solar payback period and it takes approximately 14 years.¹⁶

Solar Panel Cost Calculator Oregon

You will be able to save on energy costs after you have installed your solar panel to your home. With the help of a solar panel calculator, you can be able to save some amount of money.

But how long can this solar pay for itself? Let us find out.

Now, let us say that the gross amount that you are going to use to install your solar system is $30,000. The state of Oregon offers an ITC of 30%.

Take out the 30% from the gross amount that you are going to use $30,000 x 30% = $9000.

This $9000 that you have saved is not just going to be given back to you just like that. It is going to be used to reduce your tax credit that you have.

But do not worry because this solar is going to repay itself overtime by helping you to save on the electricity bills.

How Much Can You Save on Solar in Oregon?

You will be able to save some amount of money when you have installed solar panels in your home. You can save up to $16,000 in a year.

This is possible, but the amount of money that you will save depends on some factors like how much electricity you tend to use, the size of your solar system and so on.

It is not guaranteed that everyone who has installed a solar panel can save this $16,000 each year, because the location also matters in this case.

Is Solar Worth It in Oregon?

Do not worry about what people say about solar energy and the weather; we cannot deny the fact that bad weather can reduce the efficiency and production of your electricity. But one thing for sure is that you will be able to save a lot of money when you decide to go solar.

And yes, solar is worth it in Oregon.

The amount of electricity you will use in a day, the angle of the sun and the availability of Oregon solar incentives will all affect how fast you are going to invest in this process. Let us say that you have paid your upfront with cash, and you have installed an average solar system, do you know that you will be able to save $15,000 per year.

If you have taken a loan that would have financed all of your installation, then you will start saving from the first day. Although, your savings will be less and will take a longer time.

Carbon Footprint Solar Panels

Carbon footprint is the amount of carbon that is released to the atmosphere due to some consumption and production activities. One benefit that the solar panels have is that they generate carbon free renewable energy, this is one thing that the world needs right now.

In the process of producing this solar panel, there is a significant amount of carbon that is released to the atmosphere.⁶

Transport of materials and mining are the sources of carbon footprint in the solar panel production. Many businesses in the world today including solar panels are seeking ways to calculate the carbon footprint of solar panels in the process of their production.¹⁷

Solar Panels Portland Oregon

Portland, Oregon is one place that receives a lot of winter rains. You are in Portland, and this will make you think whether installing a solar system can be a good idea or not.

Yes, solar requires energy from the sun for it to function well, the long summers that Portland receives can make up for those winter days when there is no sunshine.

Do you also know that one of the world’s powerhouses Germany has an equivalent resource of solar to Portland?

The initial amount of money to install your solar system can be overwhelming at times especially if you are going for a bigger equipment, but as a resident in Oregon, you are being offered Oregon solar incentives that are worth 30% of your gross installation, and this will make the installation very affordable.

Solar Rebates From the Government

Solar rebates are financial incentives that are given by the government to its residents to help them install solar systems in their homes in order to improve the health of the environment and also to help the people to be electricity independent.

Rebates can be in the form of Investment Tax Credit (ITC) where you are allowed to apply to all major types of solar technology including concentrating solar technology,¹⁸ Photovoltaic and solar heating and cooling.^19,20

Your solar contractor would be in the best position to explain to you the other forms of rebates that the government offers.

Going solar does not only help reduce the amount of carbon that is being produced in other industries, but also helps people to save a lot of money and be independent when it comes to electricity. Jobs are also being created when installing the solar panels thus helping the government to generate taxes from its people in order to maintain public facilities for the people.

Oregon is offering residents some of the best offers to go solar.

The Oregon solar incentives reduce the cost of solar panels in Oregon, making it a great time to buy and install a PV system for your home.

Frequently Asked Questions About Oregon Solar Incentives