Oregon Solar Incentives & Tax Credits 2026: Complete Guide

Oregon’s solar incentives remain strong in 2026, even after federal changes. By stacking state rebates and Energy Trust incentives, you can still save thousands on your solar installation—and with net metering, you could zero out your PGE or Pacific Power bill for decades.

Here’s how to maximize your savings in 2026.

Federal Solar Incentives 2026: What Changed

The federal solar tax credit (Section 25D) for homeowners expired at the end of 2025. However, if you lease your system or enter a power purchase agreement (PPA), the solar company can still claim up to 30% under Section 48E through 2027—and pass those savings to you through lower monthly payments.

Example (Lease/PPA)

• Solar system cost: $25,000
• 30% commercial credit passed through: $7,500 savings
• Your effective cost: $17,500 (or lower monthly payments)

The commercial credit applies to:

• Solar panels and equipment
• Installation labor
• Battery storage (if installed with solar)
• Electrical upgrades required for installation

Oregon Solar + Storage Rebate Program

Oregon offers a state rebate for solar and battery storage through the Oregon Department of Energy's Solar + Storage Rebate Program.

Current rebates:

• Solar panels: Up to $5,000 for systems under 10 kW
• Battery storage: Up to $2,500 per battery

Stacking Example (Purchase)

• System cost: $25,000
• Oregon solar rebate: -$5,000
• Oregon battery rebate: -$2,500
• Your final cost: $17,500 (30% savings)

Stacking Example (Lease/PPA)

• System cost: $25,000
• Oregon solar rebate: -$5,000
• Oregon battery rebate: -$2,500
• 30% commercial credit passed through: -$6,000 (on remaining $20,000)
• Your effective cost: $11,500 (54% savings)

Net Metering in Oregon

Oregon has excellent net metering policies. When your solar panels produce more electricity than you use, the excess flows back to the grid and you get credited at the full retail rate.

How it works:

1. Sunny day: Your panels produce more than you use excess goes to grid
2. You earn credits at retail rate (~$0.11-0.14/kWh)
3. Night/cloudy day: You use those credits
4. End of year: Unused credits typically roll over or get paid out

This makes solar financially viable even in Oregon's cloudier months—you bank credits in summer to use in winter.

Portland Clean Energy Fund

Portland residents may qualify for additional incentives through the Portland Clean Energy Community Benefits Fund (PCEF).

The fund prioritizes:

• Low-income households
• Renters (community solar programs)
• BIPOC communities
• Areas with poor air quality

Grants can cover up to 100% of solar installation costs for qualifying households.

Utility-Specific Incentives

Portland General Electric (PGE)

• Time-of-use rates that make solar more valuable
• Solar + battery pilot programs
• Community solar options for renters

Pacific Power

• Net metering at retail rate
• Blue Sky renewable energy program
• Time-of-use rate options

Eugene Water & Electric Board (EWEB)

• Cash incentives for solar installations
• Net metering program
• Low-interest loans for solar + storage

Property Tax Exemption

Oregon offers a property tax exemption for residential solar installations. Your solar panels won't increase your property taxes even though they increase your home's value.

This exemption is automatic—you don't need to apply.

How Much Can You Save?

Here's a realistic example for a Portland-area home:

Purchase Scenario

| Item | Amount | |------|--------| | 8 kW solar system | $24,000 | | 10 kWh battery | $8,000 | | Total before incentives | $32,000 | | Oregon solar rebate | -$5,000 | | Oregon battery rebate | -$2,500 | | Your net cost | $24,500 | | Total savings | 23% |

Lease/PPA Scenario

| Item | Amount | |------|--------| | 8 kW solar system | $24,000 | | 10 kWh battery | $8,000 | | Total before incentives | $32,000 | | Oregon solar rebate | -$5,000 | | Oregon battery rebate | -$2,500 | | 30% commercial credit passed through | -$7,350 | | Your effective cost | $17,150 | | Total savings | 46% |

With a 25-year panel warranty and Oregon's net metering, both options can still pay for themselves in 8-12 years—then provide free or low-cost electricity for decades.

Is Oregon Good for Solar?

"But doesn't it rain all the time in Oregon?"

Not as much as you'd think. Oregon actually gets decent solar production:

• Portland: 4.2 peak sun hours/day average
• Bend: 5.1 peak sun hours/day average
• Germany: 3.0 peak sun hours/day (and they're #1 in solar!)

Oregon's long summer days produce a ton of energy that you bank for winter. Plus, solar panels are actually more efficient in cooler temperatures.

Next Steps

Ready to see how much you can save? The best way to get accurate pricing is to get quotes from multiple local installers.

We'll connect you with up to 3 pre-screened, licensed solar installers in your area. All quotes are free with no obligation.

Frequently Asked Questions

Q: How long does solar installation take? A: Most residential installations take 1-3 days. The longer part is permitting and utility approval, which can take 2-8 weeks depending on your area.

Q: What if I don't have a south-facing roof? A: West-facing roofs work nearly as well in Oregon. Even east-facing roofs can be viable. A good installer will model your specific roof and give you production estimates.

Q: Should I wait for prices to drop? A: Solar prices have stabilized, and Oregon’s state incentives remain strong. Waiting means losing years of savings on your electric bill—and missing out on Oregon’s net metering benefits.

Q: What about solar if I might move? A: Solar increases home value by roughly the amount you paid (after incentives). Homes with solar sell faster and for more money.