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State solar guide

Solar in Oregon: Incentives, Costs, and Net Metering in 2026

Oregon has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.

Average electricity rate in Oregon
14.64
Peak sun hours (Oregon range)
3.5 to 5.5
Average installed cost per watt in Oregon
$2.55
Federal residential credit (2026)
0%

Sources: ElectricChoice June 2026 | NREL PVWatts (Portland averages 3.5 to 4.0 peak sun hours per day; Medford averages 4.8 to 5.5 hours per day; Bend averages 5.0 to 5.5 hours per day) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).

Net metering

How solar export credits work in Oregon

Oregon law requires net metering at the full retail rate for systems under 25 kW. Portland General Electric (PGE) and Pacific Power are the primary investor-owned utilities. Under Oregon's policy, customers receive 1:1 credit for exported solar at the full retail rate. Credits roll over for 12 months and excess at annual settlement is compensated at a lower avoided-cost rate. Eugene Water and Electric Board (EWEB) and some municipal utilities offer similar programs with their own tariffs - verify current terms with your specific utility.

PGE and Pacific Power each administer separate net metering tariffs; export credit rates are based on each utility's retail rate, which differ slightly. EWEB (Eugene) offers net metering as a municipal utility but at its own rate structure. Some rural electric cooperatives in Oregon offer less favorable net metering terms - verify with your cooperative before contracting.

Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).

Verify with your utility

Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Oregon utility before contracting. Current program details at DSIRE (opens in new tab).

State incentive stack

Oregon solar incentives in 2026

The federal residential credit expired December 31, 2025. The programs below are what remains for Oregon homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.

Incentives available in Oregon

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in Oregon
Program Benefit Eligibility Status Source
Energy Trust of Oregon (ETO) - Residential Solar Rebate
Utility-funded rebate
Available only in PGE and Pacific Power service territories. EWEB and cooperative customers do not qualify. Verify that your contractor is Energy Trust approved before signing a contract.
$2,500 flat per residential solar installation
Flat $2,500 rebate per qualifying residential solar system in Portland General Electric and Pacific Power service territories. Funded through utility ratepayer charges and administered by the Energy Trust of Oregon.
Customers in Portland General Electric or Pacific Power service territory in Oregon. Must use an Energy Trust approved contractor. System must meet ETO specifications. Active DSIRE (opens in new tab)
Energy Trust of Oregon (ETO) - Solar Within Reach (Income-Qualified)
Utility-funded rebate (income-qualified)
Verify current income eligibility thresholds and available capacity with the Energy Trust of Oregon before relying on this incentive amount.
Up to $6,600 for solar; up to $11,700 for battery storage
Enhanced rebate for income-qualified customers in PGE and Pacific Power territories. Up to $6,600 for solar installation; up to $11,700 for battery storage.
Income-qualified customers in PGE or Pacific Power territory. Verify current income thresholds with the Energy Trust of Oregon. Active DSIRE (opens in new tab)
Energy Trust of Oregon (ETO) - Battery Storage Rebate
Utility-funded rebate (battery storage)
Verify current rebate rate per kWh and maximum amount with the Energy Trust of Oregon; rates may change between program cycles.
Approximately $400 per kWh up to $5,000
Battery storage rebate of approximately $400 per kWh for qualifying systems, up to $5,000, in PGE and Pacific Power territories.
Customers in PGE or Pacific Power territory installing qualifying battery storage systems, standalone or paired with solar. Must use an ETO approved contractor. Active DSIRE (opens in new tab)
Oregon ODOE Solar plus Storage Rebate Program (OSSRP)
State rebate
Prior ODOE program rounds exhausted funding within 48 hours. Applications are first-come, first-served. Your contractor must be ODOE-approved before application. Do not rely on this rebate without a confirmed reservation - funds may exhaust before you can apply. Verify current program status at the Oregon Department of Energy website.
Up to $5,000 (solar); up to $2,500 (battery); up to $7,500 (solar, income-qualified); up to $11,700 (battery, income-qualified)
Oregon Department of Energy rebate: up to $5,000 for residential solar and $2,500 for battery storage. Income-qualified: up to $7,500 for solar and $11,700 for battery. Program reopened June 15, 2026 with $1.1 million in available funds. Prior rounds exhausted in 48 hours.
Oregon residents using ODOE-approved contractors. Income-qualified tiers available for lower-to-moderate income applicants. Applications are first-come, first-served until funds exhaust. Limited DSIRE (opens in new tab)
Oregon Solar Property Tax Exemption
Property tax exemption
Confirm with your county assessor that the installation is properly recorded as exempt at permit and inspection.
Full exclusion of solar-added assessed value from property taxes
Grid-connected solar systems are excluded from Oregon property tax assessments under ORS 307.175. Installing solar does not increase assessed property value.
Oregon residential properties with qualifying grid-connected solar systems. Active DSIRE (opens in new tab)

Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

Battery storage incentives in Oregon

Energy Trust of Oregon (ETO): up to $5,000 for battery storage at approximately $400 per kWh in PGE and Pacific Power territories. Oregon ODOE Solar plus Storage Rebate: $2,500 for battery storage (up to $7,500 solar for income-qualified; $11,700 battery for income-qualified). ETO and ODOE rebates may stack for qualifying customers - verify with your contractor.

Savings example

What solar pencils out to for a typical Oregon homeowner

This example uses real Oregon market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.

System size 12 kW at market average of $2.55 per watt. Annual production estimated at 13,200 kWh based on Portland at 3.5 to 4.0 peak sun hours per day (NREL PVWatts, lower end for Western Oregon cloud cover). Assumes 75% self-consumption at $0.1464 per kWh full retail value; 25% exported at full retail rate via PGE net metering. No Oregon sales tax applies. Utility rate escalation at 3% annually. Federal residential credit: $0 (expired). ETO rebate: $2,500. ODOE rebate shown separately as uncertain - verify enrollment. Eastern Oregon customers (Medford, Bend) with 4.8 to 5.5 peak sun hours see materially better economics. Figures are illustrative; your in-home assessment will use your actual bills.

Oregon Portland General Electric customer (illustrative)

Utility (Portland General Electric)
Portland General Electric
Typical system size
12 kW
Gross system cost
$30,600
Federal residential credit (2026)
$0 (expired December 31, 2025)
Applicable incentives applied
No federal residential credit (expired December 31, 2025). No Oregon state income tax credit (RETC expired). No Oregon sales tax (Oregon has no state sales tax). Energy Trust of Oregon flat rebate: $2,500. Oregon ODOE rebate: up to $5,000 (if enrolled before funding exhausts - not guaranteed). Property tax exemption on solar-added value (ongoing).
Estimated net cost after incentives
approximately $23,100 with ETO rebate and ODOE rebate (if ODOE available); approximately $28,100 with ETO rebate only
Estimated annual savings
$1,900 to $2,400
Estimated payback period
9 to 12 (with ETO rebate plus ODOE rebate); 11 to 15 (ETO rebate only) years

Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.

Permitting

Solar permits in Oregon

Oregon does not have a statewide residential solar permit fee cap. Portland (Bureau of Development Services) and Multnomah County are the primary permit authorities in Western Oregon. Portland BDS has established solar permit processing and an online submittal portal. Permit fees in Portland typically run $200 to $450 for residential solar. Medford and Bend permit offices in Eastern Oregon tend to have shorter queues. PGE and Pacific Power interconnection reviews add 4 to 8 weeks after permit issuance. Total contract-to-energization time in Oregon typically runs 8 to 16 weeks. ODOE rebate applications require an approved contractor and coordination with the rebate program timing.

The ODOE rebate program requires using an ODOE-approved contractor and submitting the rebate application through that contractor. Coordinating ODOE application timing with your installation schedule is important, as funds exhaust quickly. Verify your contractor's ODOE approval status before signing a contract if you intend to pursue the ODOE rebate.

Commercial solar in Oregon

Section 48E is still active for business owners in Oregon

The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Oregon business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.

Commercial solar overview

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

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Frequently asked

Oregon solar questions answered honestly

Every answer is specific to Oregon: your utility rules, your incentives, your net-metering regime. No generic boilerplate.

Is solar worth it in Oregon without the federal tax credit?

Oregon is the most rebate-active western state post-federal-credit expiration, which is what makes it a strong market despite moderate sun in the western part of the state. The Energy Trust of Oregon provides a flat $2,500 rebate per residential installation in PGE and Pacific Power territories. The ODOE program adds up to $5,000 more when funds are available (though prior rounds exhausted in 48 hours, so ODOE funds are not guaranteed). Income-qualified customers can access significantly higher rebate amounts. Eastern Oregon (Medford, Bend) sees 8 to 11 year payback on the combination of better sun and the ETO rebate. Western Oregon (Portland) sees 12 to 16 year payback without the ODOE rebate, 11 to 15 years with the ETO rebate alone.

How do the Energy Trust of Oregon and ODOE rebates work together?

The Energy Trust of Oregon (ETO) and Oregon Department of Energy (ODOE) rebates can potentially stack for qualifying customers. ETO provides a flat $2,500 rebate per residential solar installation in PGE and Pacific Power territories; this requires using an ETO-approved contractor. The ODOE Solar plus Storage Rebate (OSSRP) provides up to $5,000 for solar and $2,500 for battery; this also requires using an ODOE-approved contractor and submitting through their application system. Both programs may require the same contractor to be approved - verify with your contractor before signing. The ODOE program exhausts funding extremely quickly (within 48 hours in prior rounds) and is first-come, first-served. The ETO rebate is the more reliable of the two because it does not exhaust in hours.

How does net metering work in Oregon in 2026?

Oregon requires full 1:1 retail-rate net metering for grid-connected systems under 25 kW. Portland General Electric and Pacific Power customers receive credits at the full retail rate. Credits roll over for 12 months - unused credits at the annual settlement point are compensated at a lower avoided-cost rate rather than the full retail rate. Eugene Water and Electric Board offers similar net metering as a municipal utility. Some rural cooperatives may have less favorable terms. There is no California-style NEM 3.0 export cut in Oregon; full retail metering applies statewide for regulated IOU customers.

How long does solar permitting take in Oregon?

Oregon has no statewide permit fee cap. Portland Bureau of Development Services (BDS) typically processes residential solar permits in 2 to 4 weeks with fees around $200 to $450. Eastern Oregon jurisdictions (Medford, Bend) often have faster timelines due to lower permit volume. PGE and Pacific Power interconnection reviews add 4 to 8 weeks after permit approval. Total contract-to-energization time in Oregon typically runs 8 to 16 weeks. If you are planning to pursue the ODOE rebate, coordinate your contractor selection and installation timeline with the rebate application window, as ODOE-approved contractors must submit applications on your behalf.

More state guides

Compare solar economics across nearby states

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