How Much Do Solar Panels Actually Save in Oregon?

$15,000. That’s the average cost of a 6 kW solar system in Oregon in 2026—before incentives. After Oregon’s state rebates and Energy Trust incentives, your net cost drops to $10,000–$12,000. Leasing or PPAs may still offer 30% savings through the commercial credit. With electricity rates rising, that system could pay for itself in 7–12 years, leaving you with 13+ years of free power.

Here’s how the math works for PGE and Pacific Power customers.

The Cost of Solar Panels in Oregon (2026)

The average cost of a residential solar panel system in Oregon ranges from $10,000 to $25,000 before incentives, depending on system size and equipment. For most homeowners, a 6–8 kW system is typical, costing about $15,000–$20,000 installed.

But here’s the good news: Oregon’s incentives can cut this cost by 50% or more.

Oregon Solar Incentives: What’s Available in 2026?

Federal Solar Incentives: What Changed

The 30% federal solar tax credit (Section 25D) expired at the end of 2025 for homeowners. 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.

Energy Trust of Oregon (ETO) Cash Incentives

PGE customers: Up to $1,000 for solar, $500/kWh for battery storage (up to $6,000).
Pacific Power customers: Up to $1,200 for solar, $500/kWh for battery storage (up to $6,000).
Income-qualified households: Up to $5,400 (PGE) or $6,000 (Pacific Power) for solar, plus $750/kWh for batteries (up to $10,000).

Oregon Department of Energy (ODOE) Rebate

Up to $5,000 for solar-only systems, $6,000 for solar + battery.
Low-income households: Up to 60% of net cost (max $5,000–$6,000).

Net Metering: Your Key to Savings

PGE and Pacific Power both offer 1:1 net metering in 2026.
For every kWh your solar panels send to the grid, you get a 1 kWh credit on your bill.
PGE’s proposed changes: If you install solar before any new policy takes effect, you can lock in 100% net metering for 10 years.
Pacific Power continues to offer full net metering, with no announced changes for 2026.

How Much Can You Save with Solar in Oregon?

Monthly Electricity Savings

The average Oregon home uses 900–1,100 kWh/month.
A 6 kW solar system can offset 70–90% of your usage, depending on roof orientation and shading.
PGE’s average rate (2026): $0.18/kWh
Pacific Power’s average rate (2026): $0.17/kWh
Estimated monthly savings: $100–$200

Annual Savings

$1,200–$2,400/year on electricity bills.
With net metering, you can bank credits in the summer and use them in the winter.

Payback Period: When Do You Break Even?

| System Cost | Incentives (Purchase) | Net Cost (Purchase) | Incentives (Lease/PPA) | Net Cost (Lease/PPA) | Annual Savings | Payback Period (Purchase) | Payback Period (Lease/PPA) | |-------------|----------------------|-----------------------|-----------------------|-------------------------|----------------|---------------------------|-----------------------------| | $20,000 | $6,000 | $14,000 | $10,000 | $10,000 | $1,800 | 7–9 years | 5–7 years | | $15,000 | $6,000 | $9,000 | $7,500 | $7,500 | $1,500 | 6–7 years | 5 years |

With incentives, most homeowners break even in 5–7 years.
Solar panels last 25+ years, so you’ll enjoy 18–20 years of free electricity after payback.

Real-World Example: PGE Customer in Portland (Purchase)

System: 7 kW solar, $18,000 installed Incentives:

ETO rebate: $1,000
ODOE rebate: $5,000 Net cost: $12,000 Annual savings: $1,800 Payback period: 6–7 years

Real-World Example: PGE Customer in Portland (Lease/PPA)