Solar power in Oregon

Oregon was one of the earliest adopters of solar power in the country. Despite the state’s reputation for gloomy weather, it ranks among the top half of the U.S. for solar energy generation. The state provides nearly 4,000 solar jobs to residents and has invested $2.4 billion in solar energy production. The Solar Energy Industries Association (SEIA) predicts Oregon will add another 2,831 megawatts (MW) of solar capacity in the next five years, a nearly 100% increase over its current capacity of 1,420 MW.

If you install solar panels in Oregon, you could save thousands on energy costs over the next few decades. There are several ways to make the $28,000 cost of a typical panel array more affordable. Read on to learn more about Oregon solar power.

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Oregon solar panel cost

The cost of a solar panel system is measured in dollars per watt. According to the Lawrence Berkeley National Laboratory, the average solar system in the U.S. costs $3.67 per watt. The national average system size is 8.6 kilowatts (kW), resulting in a total anticipated cost of $31,558 before accounting for tax credits and incentives.

Meanwhile, the average solar system cost in Oregon is $3.50 per watt. With a typical system size of 8 kW, the total cost is $28,000 before factoring in savings from solar incentives. Keep in mind, however, that solar panel systems are fully customizable, and costs vary based on your energy use and the type of equipment you choose.

The following table shows a comparison between the U.S. average solar cost and Oregon’s average installation price.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The cost of solar panels depends on many factors, including the size and configuration of your system, the type of panels, the components included (such as an inverter or generator), and local labor and permitting costs. Tax credits and other financial incentives can help reduce your out-of-pocket price. 

The average monthly Oregon electricity bill is currently $117, an expense you could reduce or erase after solar installation. Your electricity bill savings could be even greater if energy costs continue to trend upward in the long run. Based on the average Oregon energy bill and consumption patterns, you could expect to break even on your solar panels within about 14 years.

Your system size greatly affects your total price and potential savings. Depending on your energy usage and the size of your home, you may opt for a larger or smaller system than Oregon’s average. Here is a range of potential costs based on different system sizes with the state’s average price per watt:

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Oregon solar panel incentives or rebates

While solar panels can be expensive, there are many financial incentives offered by federal, state, and local governments to make solar more affordable and accessible for homeowners.

The federal government offers a 30% solar tax credit, now known as the Residential Clean Energy Credit, when you purchase solar equipment for your home. Based on the average cost of solar panels in Oregon, this tax credit alone could be worth around $8,400 when you file your federal tax return. There is no cap on the amount you can claim from this credit, and it applies to purchases made for your primary or secondary residence.

In addition to the federal tax credit, Oregon residents can take advantage of state and local Oregon solar incentives. Here are a few of the solar incentives available in Oregon.

Solar incentives in Portland

As the largest city in Oregon, Portland offers some local Oregon solar incentives. For example, it has a streamlined permitting process for residential solar systems to help simplify and speed up the overall installation process. The permitting process normally takes between two and six weeks, so this incentive can shorten what is often the longest part of the installation process.

• Apply for a residential building and plumbing/electrical permit, and go through zoning and planning review. 
• Permits may be issued as early as the same day if your installation complies with all regulations and you’ve paid your fees.

In 2001, Portland enacted its Green Building Policy, which requires new construction and renovation projects to meet certain green energy standards. Solar panels are one of the qualifying green energy technologies that can help building projects meet the set standards.

Solar incentives in Salem

One of Salem’s two main electric utilities, Salem Electric, offers a net metering agreement where residents can receive a $300 rebate for every kW of solar energy installed. The maximum incentive for this program is $1,500, or 50% of the total project cost.

• To qualify for the program, you must get at least two bids for your solar installation.
• All systems are subject to review by Salem Electric’s engineering team and must be UL listed and rated for connection to the company’s delivery system.
• Contact Salem Electric member services at 503-362-3601 for more information.

Solar incentives in Eugene

Eugene residents benefit from several solar incentives. The Eugene Water & Electric Board (EWEB) has a renewable net-metered rate of $0.0693 per kWh of energy produced by your solar panels. Additionally, residents can receive $0.40 per AC output watt for up to $2,500, while nonprofits, government organizations, and public businesses can receive $0.50 per AC output watt for up to $12,500.

• To apply for these credits, use EWEB’s online application.
• You’ll also need to submit two installation bids (no more than three months old) from approved contractors and a completed power purchase agreement.

The city also offers several income-based incentives to help you pay for electricity. If you meet certain income requirements, you can receive a $280 credit on your bills. Eligible 501(c)(3) organizations may also receive a 10% annual rebate on utility bills to help curb the costs of electricity. 

• You can find income guidelines and 501(c)(3) eligibility criteria here.

Apply for this program online, and be prepared to show proof of income eligibility.

The city also offers several income-based incentives to help you pay for electricity. If you meet certain income requirements, you can receive a $280 credit on your bills. Eligible 501(c)(3) organizations may also receive a 10% annual rebate on utility bills to help curb the costs of electricity. 

Why choose Oregon solar power?

Installing solar panels on your home offers plenty of benefits, including lowering your electricity costs, increasing energy independence, and reducing your carbon footprint.

Lower energy costs 

Installing home solar panels can drastically reduce your energy costs. Solar panels capture sunlight and convert it into usable energy to power your home. As long as your home is powered by solar energy, you won’t need to pay as much for electricity from the traditional energy grid. Once you’ve paid off your solar panel investment, you’ll essentially receive free electricity depending on how much your system produces.

Increase energy independence

Another benefit of installing solar panels is how solar energy improves your energy independence. There are two key benefits to energy independence. First, you don’t have to worry about spiking energy prices when demand is high. If you have a battery backup in your solar system, you won’t be vulnerable to power outages since your stored solar energy can continue to power your home.

Go green

Installing solar panels on your home is an excellent way to reduce your home’s environmental footprint with green energy. While traditional energy generation emits carbon dioxide that contributes to climate change, solar power is a form of clean and renewable energy. Generating solar energy doesn’t produce greenhouse gasses like carbon dioxide, meaning it’s an environmentally safer power source.

How does Oregon solar save you money?

Installing solar panels in Oregon exempts you from higher property taxes in the state, saving you money while your home increases in value. Many available rebates and tax credits in Oregon help make solar energy an affordable alternative to traditional electricity. From the federal solar tax credit to local and state rebates and net metering programs, you’ll notice savings on your energy bills soon after switching to solar.

What to look for in a solar contractor

Choosing the right solar contractor to install your solar panel system is a big decision — especially if you’re leasing your solar system. Here are the most important factors to consider when choosing a solar installer:

• Credentials: Your solar contractor should be certified through a recognized organization, such as the North American Board of Certified Energy Practitioners. 
• Bonded and insured: A legitimate solar installer will be bonded and insured for solar installations for safety purposes.
• Reputation: Check reviews and testimonials online or through word of mouth to confirm that other customers are happy with their services. 
• Pricing: Compare at least three solar contractors to determine local labor rates for installing solar panels.
• Products and warranties: Consider whether a potential installer uses quality products from trusted manufacturers. You should also determine whether it offers strong warranties for products and quality of work.

Should I buy or lease my solar panels?

Residents can choose to finance their solar panel cost in Oregon in several ways. While each option has its own advantages, buying your solar panels will likely save you the most money in the long run. Owning solar panels means you’ll qualify for the federal tax credit and other solar incentives, which isn’t the case if you lease your system. You could also increase your home’s resale value by up to $15,000 if you purchase solar panels.

Oregon solar panel companies

Along with the rise in popularity of solar power, there has been an increase in the number of solar installers on the market. It’s important to understand the difference between a solar manufacturer (the company making the solar system components) and a solar installer (the company installing the various system components). SaveOnEnergy has a plethora of resources to help you learn about solar and find an installer that works for your budget and needs. If you’re ready to take the next step, we can also help you find a top-tier solar installer in your area. Fill out our solar estimator or call the number on this page to receive details on the potential cost and savings of a solar panel system.

Solar installer	Year founded	Financing options	Warranty terms
	2020	Cash purchase, solar loan, lease, or PPA	25-year manufacturer warranty and 10-year quality-of-work guarantee
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
Smart Solar Energy	2020	Cash purchase or solar loan	25-year manufacturer warranty, five-year production warranty, and 10-year quality guarantee
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

Beware of free solar panels in Oregon scam

There are many ways to lower the cost of solar panels in Oregon, but there’s no way to make them free. Unfortunately, some scammers try to trick unsuspecting customers into sharing their personal information by luring them with the false offer of free solar panels in Oregon. Don’t be fooled by these offers — but be confident that purchasing solar with a reputable installer can save you money in the long run.

Important solar installation factors to consider

Solar panels can be an excellent way to reduce energy costs and your home’s environmental footprint. However, before you install solar panels on your home, there are a few things to consider:

• The state of your roof: Solar panels are best for roofs in good shape and won’t need to be replaced anytime soon. Be sure to maintain, repair, or replace your roof before installation day. According to the Department of Energy, solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees.
• Available sunlight:While solar panels can generate some power in indirect sunlight, they’ll produce the most electricity with direct sun. Solar panels may not be the right fit if you rarely get sun at your home due to local weather patterns, tree cover, or other obstructions.
• Your neighborhood rules:Some homeowners associations (HOAs) have restrictions on the use of solar panels. You may be limited to a certain size or need to get approval from your HOA before installing your panels.