OREGON RESIDENTIAL

Incentives

2021 OREGON RESIDENTIAL SOLAR INCENTIVES

With incredible Oregon solar incentives available in 2021, Oregon homeowners have the opportunity to take advantage of incredible financial benefits when switching to solar.

When you switch to solar, we’ll take care of the majority of your incentive paperwork. All of our solar systems come with free project management support, and we’ll supply all the information necessary for your tax documents and communicate with your tax professional as needed.

Total Solar Resource Fraction (TSRF)

Total Solar Resource Fraction is a solar industry term that just means the total sunlight an evaluated area will collect throughout a given year. TSRF accounts for things like tree shading, roof tilt, and roof orientation. An area with 100% TSRF represents a space that will get all possible sunlight without anything obstructing its view of direct sunlight.

To be approved for certain Oregon Solar Incentive, the area of your property that will have solar installed on it must have a TSRF of greater than or equal to 75%. We can easily help you confirm whether or not you qualify with our proprietary solar audit.

Federal Solar Investment Tax Credit (ITC)

The Federal government incentives homeowners to purchase solar by reducing the barriers to entry. This incentive lowers your federal tax obligations on a dollar-to-dollar basis, through a cash rebate. There is no ceiling on this tax credit. The Federal Solar Investment Tax Incentive is worth 26% of the total purchase price of your solar system, no matter the system size or cost.

Your solar system must be installed before January 1st, 2023 in order to qualify for the entire 26% rebate. In 2023, this rebate will be reduced to 22%, and this incentive is going away in 2024. Below is a timeline of anticipated federal rebate changes.

2021-2022: Owners of new residential and commercial solar systems can deduct 26% of the cost of the system from their federal tax obligations.

2023: Owners of new residential and commercial solar systems can deduct 22% of the cost of the system from their federal tax obligations.

2024: Owners of new commercial solar only (not residential) can deduct 10% of the cost of the system from their federal tax obligations. The ITC vanishes for homeowners in 2024.

Here’s how the Solar Investment Tax Credit works

For every dollar your solar system costs, the federal government will award you 26 cents back in tax credits. This is how you reduce your overall federal tax liability. This is a dollar-for-dollar tax rebate, not a tax write-off. There is no ceiling on the amount of tax credits you can be awarded – the 26% credit applies, no matter the size of your solar system.

Understanding Cost

You will receive 26% of the total cost of your solar system on your next year’s tax return. For instance, if the final purchase price of your new solar system is $20,000, you will get an additional $5,200 back from the federal government.

Calculation example 1:

$20,000 cost x 0.26 rebate = $5,200

In this example, you will receive an extra $5,200 back from the federal government.

Calculation example 2:

$15,000 cost x 0.26 rebate = $3,900

In this example, you will receive an extra $3,900 back from the federal government.

Solar Boosts Home Resale Value

Solar panels don’t just reduce your energy costs and help the environment; they also increase your property value. According to Zillow, homes with solar sold for nearly 3% more than comparable homes without. That means an average home with solar across the United States sold for an additional $9,274.

Zillow’s findings reflect similar studies published by the Lawrence Berkeley National Renewable Energy Laboratory, which drew on a sample of 23,000 homes across the country.

Understanding Property Resale Value

Your property value will increase by an average of 3% the moment you go solar. For instance, if your property value was $400,000 before installing solar, it would be worth $412,000 after installing it.

What is Net Energy Metering?

Typically, utility companies only need to keep track of the amount of energy you consume on a monthly basis. When you go solar, your utility company needs to keep track of the amount of energy you produce on a monthly basis. With Net Energy Metering, your utility company can keep track of both. At the end of the month, your power company will subtract the amount of energy you produce from the amount of energy you consume, reducing your monthly power bill. Any additional energy credits you store up will be carried over to your next month’s bill throughout the year.

Each kilowatt-hour of energy you produce is equivalent to the retail market value of a kilowatt hour of energy you purchase from your utility company. You can literally save up energy credits in the form of solar power created during the longer days of summer and then use them during the shorter days of winter.

Understanding Net Energy Metering

Imagine your new solar energy system generates 1,000 kilowatt hours of solar power in the month of June, but you only end up consuming 700 kilowatt hours of energy that month. You’d have an extra 300 solar credits that would carry over into the month of July. If you consume more energy than you produce, then the solar energy credits you have stored up would automatically be applied. Think of it as a sort of “energy storage bank.” Net Energy Metering keeps track of it all.

Oregon Solar Cost Breakdown

TRUSTED BY THE NAMES YOU KNOW

WHAT OUR CUSTOMERS ARE SAYING

Don’t take it from us – hear it from customers like you.

We used Smart Solar Energy out of Medford Oregon to get solar panels installed on my home. They were referred to us by a friend and Jordan was the salesperson who helped us. He was very knowledgeable and explained all the pros and cons of going solar. In the end, the pros outweighed the minimal cons and helped my wife and I make the decision to go solar. The pricing was very competitive and the installation was done professionally. We always felt like we were being kept in the loop with them. They even checked back in to see how we were doing after the installation. Overall, we’re very happy with our decision and are glad to be saving some money!

Sylvia M.
Medford, Oregon

I care about saving money. I care about the investment known as my home. Working with Smart Solar Energy has been such a pleasure! As someone who cares about the environment, it’s important to me to make sure the company I go with feels the same way. They did a very thorough job and were careful to make sure I was aware of what the next steps were in the installation process. The process of getting the roof surveyed and getting solar panels was pain and stress free. I highly recommend Smart Solar Energy out of Bend Oregon because of the quality and respect they provided to me in this process of getting solar panels on my roof. As Oregon is progressing towards renewable energy, I’m glad Smart Solar Energy is the team I'm with. They work with you and for you. I highly recommend!

Jerry L.
Bend, Oregon

The search for solar is a daunting and scary task. With so many choices and so many options it makes it tough to decide which direction to go. Everyone is looking to make your money. Thankfully, I came across Smart Solar Energy in Portland, Oregon. The salesperson was incredibly honest and straightforward. The process was handheld all the way through till the end and they dealt with all my senseless worries and any problems that occurred extremely professionally and quickly. I recommend them to any and everyone that asks me about the solar on my home. Oh, and the work was done very nicely, panels look great, crew was very clean, and my place was left spotless after all was said and done. Highly recommend Smart Solar Energy to anyone looking to go solar!

Sally F.
Portland, Oregon

After almost 2 years of research and multiple solar power company interviews, none of them compared to Smart Solar Energy. They were very professional and thorough. I didn’t feel pressured anytime during the process. The solar consultant understood my needs and some of the headwinds I was facing with such a long term commitment. The fact that their installation company installed more solar in Oregon and Washington than anyone else, combined with the high quality panels made my decision that much easier. The installation went flawless even though some uneventful weather delayed it. The entire process from start to finish took about 40 days. I highly recommend that Smart Solar Energy out of Longview, Washington be one of your finalists when it comes to your solar energy needs.

Kathy T.
Longview, Washington

Just had my solar installed last week! After a year of research and quotes from companies, reviews, systems, material, panels used I finally decided on Smart Solar Energy out of Salem Oregon. Boy did my research payoff. Jordan the salesman explained everything. He didn't waste my time by trying to push me in a direction I wasn't interested. He was knowledgeable and helped me come up with a plan that fit best for what my wants and needs were. Then it moved to my project manager. He was there to explain where we were in the process and ensure it all was taken care of. Install day came. They did a great job and it looks great. They explained what they were doing throughout the process and how it all works together. After install they contacted me to explain how to monitor the solar being produced.

Rick H.
Salem, Oregon

SWITCH TO SOLAR & SAVE.

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