OREGON SOLAR PANEL COST
Oregon Solar Cost Breakdown
Despite the cloudy weather, solar power is increasingly becoming more popular with homeowners in Oregon. These homeowners are becoming more environmentally friendly while saving money on their utility bills, locking in their electricity rates, and increasing their property values.
To ensure you get the best possible solar education, we’re going to look at the primary reasons to switch to solar in Oregon, and break down the average cost of a standard solar system after incentives.
The Cost Of Electricity in Oregon Has Increased Drastically
In Oregon, the average cost of a single kilowatt hour of power is about 10.5 cents. In 2010, the average cost of a single kilowatt hour of power was about 6.2 cents. Retail electricity rates have risen drastically across the state over the last 10 years. The trend of utility companies continuing to raise electricity rates is unlikely to change in the near future.
The Cost Of Solar Has Dropped By More Than 55%
An averaged-sized residential system has dropped from a pre-incentive price of $40,000 in 2010 to about $18,000 today. This is one of the primary reasons why more and more Oregonians are choosing to go solar.
Solar Panels Boost Property Resale Value
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
What About The Clouds?
Germany leads the world in solar power production, yet it’s slightly cloudier than places like Portland, Salem, and Eugene on an annual basis. Much like Germany, Oregon benefits from long summer days with mild temperatures — ideal conditions for maximum solar production. This helps balance out lower production in the cloudy winter months.
Oregon Solar Incentives
Federal Solar Investment Tax Incentive (ITC)
The federal government incentivizes you 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 the tax credit. The Federal Solar Investment Tax Incentive is worth
30% of the total purchase price of your solar system, regardless of the system size or cost.
How To Break Down A Solar Panels system cost
Average Pre-Incentive System Cost in Oregon
Average System Size in Oregon: 5 Kilowatts
Average System Cost Per Kilowatt in Oregon: $3,300
5 Kilowatts in Size x $3,300 Per Kilowatt = $16,500 Initial Cost
Average Pre-Incentive Solar System Cost in Oregon: $16,500
Calculating Average Oregon Solar Incentives
Federal Solar Investment Tax Incentive (ITC)
The federal government will provide a cash incentive of 30% of your total system cost.
$16,500 System Cost x 30% = $4,950 Incentive
Average Federal Solar Incentive in Oregon: $4,950
Calculating the Average Total Cost of Solar in Oregon
Average Pre-Incentive System Cost in Oregon: $16,500
Average Federal Government Incentive in Oregon: $4,950
$16,500 Pre-Incentive Cost – ($4,950 Rebates) = $11,550
Average Post-Incentive System Cost in Oregon: $11,550
Oregon Solar System Purchase Options
Think of purchasing solar like buying or renting a home. You can own it outright by paying cash up front, you can finance it and pay $0 up front, or you can choose to rent it (lease).
At Smart Solar Energy, we don’t believe in renting (leasing) our solar systems. You have to split the savings with your solar company, you don’t get to take advantage of the federal and state solar incentives, and selling your home can be a challenge.
Much like owning a home, owning your solar system allows you to maximize your investment benefits. While paying for your solar system up front is a great investment, most of our clients would prefer to hold on to their hard-earned cash. That’s why we have a variety of $0 money down financing options with local credit unions and can work to find you a solution that meets your specific needs.
Does The Cost Of Getting Solar Panels In Oregon Make Sense For You?
We believe in educating our prospective clients so you can make well-informed decisions about your solar energy needs. Our Free Solar Audit will help you understand whether your property is a good candidate for solar. From there, we can make recommendations based on the incentives available to you and develop a unique plan that addresses your solar energy needs.
Factors Affecting the Cost of Solar Panel Systems in Oregon
The total cost of integrating a solar panel system for your home in Oregon can vary considerably based on several key factors. Understanding these factors is crucial for making informed decisions about your solar investment.
Solar System Size: Optimizing for Efficiency
The size of your solar panel system is a major determinant of its cost. If your home has limited electricity consumption or roof space, you’ll likely opt for a smaller solar system, especially in Oregon given many roofs have tree shading on them. Before making the switch to solar, consider ways to reduce your overall energy usage, such as upgrading to energy-efficient appliances or adopting water-saving measures.
Solar Panels, Inverter & Equipment: Quality Matters
The cost of solar equipment, including panels and inverters, can vary based on the manufacturer and product line. While monocrystalline solar panels may be more expensive than polycrystalline alternatives, they often offer higher efficiency and longevity. At Smart Solar Energy, we prioritize quality, installing reliable panels and inverters to ensure your system generates renewable energy for decades.
Solar System Batteries: Backup Power Considerations
Incorporating a battery bank into your solar array increases the overall system cost but provides electricity during power outages. This can lead to additional savings if your utility company offers time-of-use rates. Customers in Oregon, served by utilities like Portland General Electric and Pacific Power, can benefit from solar batteries during peak demand, potentially reducing electricity bills.
Rooftop Solar vs. Ground Mount: Location Matters
Optimal placement for solar panels is on the roof of your house, ideally facing south and in full sun. If this isn’t feasible, alternative locations like garage roofs or sheds are considered. However, a ground-mount system is an option if none of these alternatives work, though it may significantly increase costs due to additional materials, permitting, and labor.
Federal Solar Tax Credits: Financial Incentives
The federal government provides a 30% solar tax credit for installing a solar panel system. This credit applies to the total system cost, covering panels, inverters, equipment, permitting, and labor. To take advantage of this incentive, the system must be installed on a primary or secondary residence, and you must own, not lease, the solar system. Consulting a tax expert is advisable to ensure eligibility.
Cost for a 2,000-Square-Foot Home in Oregon
The cost of a solar system for a 2,000-square-foot home in Oregon varies based on factors like panel quality, system size, and labor rates. Our 6-kilowatt rooftop solar systems in Oregon typically cost around $18,000 before incentives. Applying the 30% federal tax credit and Oregon solar rebates can significantly reduce the net cost, making solar more accessible.
Oregon Solar Rebates: Additional Savings
The Oregon Department of Energy (ODOE) offers rebates for home solar systems. Homeowners can receive up to $5,000 for a solar system and $2,500 for solar batteries, further reducing the overall cost and payback period.
Solar Battery Costs and Financing Options: Planning Ahead
Installing a solar battery, such as the Enphase Encharge 10, Tesla Powerwall 2, or Generac Battery, can add around $16,000 to the total system cost. However, this cost is eligible for the 30% federal solar tax credit, and the Oregon Department of Energy provides rebates of up to $2,500 for solar batteries. Financing options, including solar loans with fixed interest rates, offer homeowners flexibility to invest in solar while enjoying long-term energy savings.
Conclusion: Smart Solar Energy Solutions
The cost of a solar system in Oregon is influenced by various factors, and Smart Solar Energy is committed to providing customized plans tailored to your energy needs and property. Our team offers free solar audits to help you make informed decisions and take advantage of available incentives, making the transition to solar both environmentally and financially rewarding.