How do solar incentives work? Energy Trust provides funding to reduce the upfront cost of installing a qualified home solar water or pool heating system. The amount of the cash incentive depends on your utility and how much energy your system will save annually.
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 verify that it was properly installed and then reimburse your contractor for the amount of the cash incentive.
Energy Trust Incentives
| |
PGE or Pacific Power customer, electric water heating |
NW Natural or Cascade Natural Gas customers, gas water heating |
Maximum incentive |
| Solar hot water |
$0.40 per annual kWh saved |
$0.30 per annual kWh saved |
$1,500 per home |
| Solar pool heating |
$0.10 per annual kWh saved |
$0.07 per annual kWh saved |
$1,000 per home |
How do I determine how much incentive I will receive?
The amount of your cash incentive depends on the fuel you use to heat your water currently, and how much energy your solar water heating system is estimated to save annually. Home solar water heating systems are tested by a national organization to determine how much energy they will save when installed in different climate zones. This estimated energy savings is called the “annual rated savings.”
Energy Trust bases its solar water heating incentives on the annual rated savings of the system you install. Qualified solar water heating systems and their rated savings can be found on Energy Trust’s Eligible Residential Solar Water Heating Systems list.
Solar pool heating incentives are also based on the estimated annual savings. To determine the savings, multiply the amount of collector area you plan to install by 30 kWh/ft2. Multiply this value by the incentive rate listed in the table, above, to estimate your incentive.
Tax Credits
In addition to Energy Trust’s cash incentives, your project may be eligible for a state energy tax credit from the 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 for solar water heating (Oregon Department of Energy): $0.60 per rated kWh savings for the first year, up to $1,500
Oregon Residential Energy Tax Credit for pools: (Oregon Department of Energy): $0.15 per rated kWh savings for the first year, up to $1,500
Federal income tax credit for solar water heating: 30 percent of net installed cost (net installed cost = total installed cost – Energy Trust cash incentive).
Note: Solar pool heating systems are not eligible for the federal energy tax credit.
All incentives and tax credits are subject to change.
You must be an Oregon customer who heats their water with electricity from Portland General Electric or Pacific Power, or with gas from NW Natural or Cascade Natural Gas. Domestic solar water heating systems (for heating water that is used inside your home) must be on Energy Trust’s eligible residential solar water heating systems list.
All systems must be installed by a qualified Energy Trust solar trade ally contractor. Self-installed systems do not qualify. Systems must be new, and incentives are not available for replacing components. Expansions or repairs to existing solar systems are not eligible.
To be eligible for solar pool heating incentives from Energy Trust, customers in Southwest, Eastern or Central Oregon must currently heat their pool with electricity or gas from Portland General Electric, Pacific Power, NW Natural or Cascade Natural Gas.
If your water heating fuel is not provided by Portland General Electric, Pacific Power, NW Natural or Cascade Natural Gas, please visit www.solaroregon.org/otherincentives to see if your utility provides incentives for solar installations.
Follow these steps to install a home solar water or pool heating 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 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. 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.
6. Complete and submit the application for your Oregon Residential Energy Tax Credit. Your contractor will provide the form and assist you.
7. 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.
8. Enjoy your clean, free, renewable energy for years to come!
Questions? Call us at 1.866.368.7878.
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 state energy tax credit application.
Have questions? Call us at 1.866.368.7878.
Interested in going solar? Here are some great ways to get started, and the supporting resources you will need along the way.
Other Resources
Fact sheets
Consumer guides to solar water heating
Tax credits
Tools and other resources