OREGON RESIDENTIAL SOLAR
2023 OREGON SOLAR INCENTIVES
With incredible solar incentives available in 2023, Oregon homeowners have the opportunity to take advantage of amazing 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)
To be approved for certain Solar Incentives in Oregon through The Energy Trust of Oregon and Eugene Water and Electric Board (EWEB), the area of your property that will have solar installed on it must have a TSRF of greater than or equal to 80%. 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 30% of the total purchase price of your solar system, no matter the system size or cost.
Currently, the 30% Federal Solar Income Tax Credit applies to all solar projects that begin construction in 2023. The 30% tax credit will last through 2033, at which point it will drop to 26%.
Here’s how the Solar Investment Tax Credit works
For every dollar your solar system costs, the federal government will award you 30 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 30% credit applies, no matter the size of your solar system.
Understanding Solar Cost In Oregon
You will receive 30% 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 $6,000 back from the federal government.
Calculation example 1:
$20,000 cost x 0.30 rebate = $6,000
In this example, you will receive an extra $6,000 back from the federal government.
Calculation example 2:
$15,000 cost x 0.30 rebate = $4,500
In this example, you will receive an extra $4,500 back from the federal government.
Solar Boosts Oregon 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 In Oregon
What is Net Energy Metering?
Understanding Net Energy Metering In Oregon
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.