How do solar incentives work? Energy Trust provides funding to reduce the upfront cost of installing a qualified home solar electric system. The amount of the cash incentive depends on a) the size of the solar electric system you install, and b) your electric utility.
To make it easy for you, the cash incentive is applied up front—like a coupon—reducing the amount you pay to your contractor. Once your project is complete, we ve
rify that it was properly installed and then reimburse your contractor for the amount of the cash incentive.
Energy Trust Incentives
I'm a customer of:
|
Incentive/wattDC |
Maximum incentive |
| Pacific Power |
$1.50/wattDC |
$20,000 per home |
| Portland General Electric |
$1.75/wattDC |
$20,000 per home |
Homeowners will also own green tags during the first five years of operation. What's a green tag?
How do I determine how much cash I will receive?
The amount of your cash incentive depends on the size, in watts, of the solar electric system you install. Solar electric systems can be designed in any size—from tiny systems that power a few lights to big systems that could power a neighborhood. Home solar electric systems usually range between 2,000 and 5,000 watts, with an average of 3,000 watts. A 3,000 watt system would receive a $4,500 incentive from Energy Trust if the home was served by Pacific Power, and $5,250 if the home was served by Portland General Electric.
Use our interactive solar calculator to explore how much a solar electric system might cost.
What’s a watt?
The size of a solar electric system is often described in watts (W) or kilowatts (kW). (One kW is equal to 1,000 watts). Watts are a unit of power, just like the horsepower of an engine. When sunlight strikes solar electric panels, they produce electricity that is measured in kilowatt hours (kWh), which are the units of energy you buy from your utility. A good rule of thumb is that 1,000 watts of solar electric panels require approximately 100 square feet of space, and will typically produce 1,000–1,300 kWhs of electricity each year in Oregon.
Tax Credits
In addition to our cash incentives, your project may be eligible for a state energy tax credit from Oregon Department of Energy and a federal energy tax credit from the federal government. Tax credits, sometimes called tax incentives, reduce the amount of tax you owe dollar for dollar.
The following description of the tax incentives does not constitute tax advice and cannot be used to avoid IRS penalties.
Oregon Residential Energy Tax Credit: $3.00/watt, capped at $6,000 or 50% of net system cost, whichever is less, per solar electric system per home. For the Oregon Residential Energy Tax Credit, net system cost is the total installed cost less the Energy Trust incentive and the federal tax credit. A maximum of $1,500 of tax credit can be claimed per year.
Federal income tax credit: 30 percent of net system cost. For the federal income tax credit, net system cost is the total installed cost less the Energy Trust incentive.
All incentives and tax credits are subject to change.
Oregon’s new solar incentive option (feed-in tariff)
The Oregon legislature passed a law in 2009 establishing a new solar incentive option (feed-in tariff). Oregon customers of Portland General Electric, Pacific Power and Idaho Power can apply to be part of the program as capacity is available. A feed-in tariff is an incentive program in which the electric utility pays the owner of a solar electric system a fixed premium rate for every renewable kilowatt-hour generated over a period of time. Those payments allow the owner to recoup their investment over time. This model has been used successfully in Germany.
Portland General Electric Solar Payment Option
Pacific Power Oregon Solar Incentive Program
FAQ
You must be an Oregon customer of Portland General Electric or Pacific Power to qualify for Energy Trust’s solar electric incentives. Systems must be installed by a qualified Energy Trust solar trade ally contractor. Self-installed systems do not qualify.
If you are not an Oregon customer of Portland General Electric or Pacific Power, please visit www.solaroregon.org/otherincentives to see if your utility provides incentives for solar installations.
Follow these steps to install a home solar electric system and get your cash incentives and tax credits:
1. Establish your eligibility and attend a free solar workshop.
2. Get bids from several Energy Trust solar trade ally contractors. Your contractor must be listed with Energy Trust if applying for cash incentives or GreenStreet Lending financing.
3. Select a contractor. Need help comparing bids? Read our How to choose a solar contractor fact sheet.
4. Sign a contract with your installer. Your contractor will complete and submit your Energy Trust incentive application form on your behalf. Your Energy Trust cash incentive is applied to the cost of your solar installation up front—like a coupon—reducing the amount you pay your contractor.
5. Sign a net-metering agreement with your electric utility. Your contractor will provide the form.
6. Your contractor installs your system. Typically, it takes anywhere from two weeks to two months from the time you select your contractor to the completion of your installation.
7. Complete and submit the application for your Oregon Residential Energy Tax Credit. Your contractor will provide the form and assist you.
8. Claim your federal energy tax credit when you file your taxes. Complete the IRS Residential Energy Credit Form and submit it with your federal tax return.
9. Enjoy your clean, free, renewable energy for years to come!
Questions? Call us at 1.866.368.7878 or contact our solar team.
Your contractor will work with you to complete the proper form for your Energy Trust cash incentive. They will also provide assistance with completing your utility net-metering agreement and state energy tax credit application.
Have questions? Call us at 1.866.368.7878 or contact our solar team.
Energy Trust offers helpful resources for installing a solar electric system at your home. Here are great places to begin gathering information about going solar:
Other Resources
Oregon’s new solar incentive option (feed-in tariff)
Fact sheets
Consumer guides to PV
Tax credits
Tools and other resources