Paying for Solar
A typical solar water heating system costs $6,500–$10,000, before incentives and tax credits. Solar pool systems typically range from $3,000-$9,000. For a solar electric system, the cost depends on the size of the system and the ease of installation, with an average cost range of $5,500–$7,000 for each kilowatt (kW) of capacity, with an average size of 3 kW. However, incentives and tax credits can cover up to 80% of the cost.
Energy tax credits are available for residential taxpayers through Oregon Department of Energy and the federal government. In addition, cash incentives are available from Energy Trust of Oregon for eligible Oregonians. Water heating incentives are available to Oregon customers who heat their water with electricity from Portland General Electric or Pacific Power or gas from NW Natural or Cascade Natural Gas. Solar electric incentives are available to Oregon customers of PGE and Pacific Power.
New in 2010, Oregon customers of Pacific Power, Portland General Electric and Idaho Power may opt to use an incentive called the feed-in-tariff, in lieu of an Energy Trust incentive and state energy tax credit.
If you are located in an area not served by any of the utilities mentioned above, cash incentives, rebates and financing may still be available to you. Go to Solar Oregon's incentives page to learn more.
Financing
If the upfront cost of solar seems daunting, consider turning that into monthly payments with affordable financing. Check out GreenStreet Lending through Umpqua Bank (an Equal Housing Lender). GreenStreet Lending offers preferred loan rates with no fees, no closing costs and flexible terms when you work with an Energy Trust solar trade ally contractor.
3rd Party Owned Options
Some companies may offer to install a solar electric system on your property and lease it to you or sell you the solar power it generates. This gives you option to enter into a lease or solar power purchase agreement in lieu of purchasing a solar electric system outright. Any additional energy you need that isn't provided by the solar panels, you purchase from your electric utility as usual.
Depending on the company, you may pay nothing or a small fee upfront to have the system installed. Because the solar company pays for the equipment and installation, the company owns the system and receives any incentives or tax benefits the system may be eligible for.
Cost examples
The following treatment of tax incentives does not constitute tax advice and cannot be used to avoid IRS penalties. The prices listed below are examples only.
Solar electric system—3,000 watts
$18,000 |
Total installed cost* |
- $3,000 |
Energy Trust incentive** |
$15,000 |
Amount homeowner pays to contractor |
- $4,500 |
Federal tax credit (30% of $15,000) |
- $6,000 |
Oregon tax credit ($2.10/wattDC, up to $6,000) |
$4,500 |
Final cost to homeowner |
* Solar electric system costs vary and depend on size. Typical systems range from $5,500–$7,000 per kilowatt installed.
** Energy Trust incentives are subject to change. Consult an Energy Trust Trade Ally contractor for current incentive rates.
Solar water heating system—saves 2,200 kWh/year
Pacific Power customer
$8,500 |
Total installed cost* |
- $880 |
Energy Trust incentive ($0.40/kWh) |
$7,620 |
Amount homeowner pays contractor |
- $2,286 |
Federal tax credit (30% of $7,620) |
$5,334 |
Net system cost |
- $1,320 |
Oregon tax credit ($0.60/kWh) |
$4,014 |
Final cost to homeowner |
*Prices for solar water heating systems typically range from $6,500–$10,000.
Tax credits, incentives and financing
Oregon and federal tax credits and Energy Trust incentives are subject to change. Please visit each organization's website to learn the most up-to-date information.
Solar electric
Tax credits
Oregon: $2.10 per wattDC, capped at $6,000 ($1,500 claimed per year over 4 years).
Federal: 30% of installed cost less cash incentivesCash incentives and rebates
Energy Trust incentive
PGE customers: $1.00 per wattDC, up to $6,000
Pacific Power customers: $0.75 per wattDC, up to $5,000
Other utility incentives: vary by utilityFeed-in-Tariff
PGE customers: Oregon Solar Payment OptionPacific Power customers: Oregon Solar Incentive Program
Financing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).
Solar water heating
Tax credits
Oregon: $0.60 per kWh, capped at $1,500 or 50% of net system cost, whichever is less. Net system cost is the installed cost less cash incentives and federal tax credit.
Federal: 30% of installed cost less cash incentivesCash incentives and rebates
Energy Trust incentive
Up to $1,500, based on rated annual energy savings
Electric hot water: $0.40/kWh (PGE/Pacific Power customers)
Gas hot water: $0.30/kWh (NW Natural/Cascade Natural Gas customers)
Other utility incentives: vary by utilityFinancing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).
Solar pool heating
Tax credits
Oregon: $0.15 per kWh, capped at $1,500 or 50% of net system cost, whichever is less. Net system cost is the installed cost less cash incentives.
Federal: No federal tax credit available for poolsCash incentives and rebates
Energy Trust incentive
Up to $1,500, depending on the energy savings and back-up fuel source.
Gas from NW Natural/Cascade Natural Gas: $0.10 per kWh
Electric from PGE of Pacific Power: $0.07 per kWh
Other utility incentives: vary by utilityFinancing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).