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 $6,500–$10,000 for each kilowatt (kW) of capacity. 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.
If you are located in an area not served by these utilities, 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 or Power Purchase Options
Some companies offer customers the option of a solar power purchase agreement in lieu of you purchasing a system outright. In this arrangement, the company purchases and installs the solar electric system on your behalf and you pay them for the electricity produced by the panels. Any additional energy you need that isn't provided by the panels, you purchase your 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—2,000 watts
Portland General Electric customer
$17,000 |
Total installed cost* |
- $3,500 |
Energy Trust incentive ($1.75/watt) |
$13,500 |
Amount homeowner pays to contractor |
- $6,000 |
Oregon tax credit ($3.00/watt, $6,000 cap) |
- $4,050 |
Federal tax credit (30% of $13,500) |
$3,450 |
Final cost to homeowner |
* Solar electric system costs vary and depend on size. Typical systems range from $6,500–$10,000 per kilowatt installed.
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 |
- $1,320 |
Oregon tax credit ($0.60/kWh, $1,500 cap) |
- $2,286 |
Federal tax credit (30% of $7,620) |
$4,014 |
Final cost to homeowner |
*Prices for solar water heating systems 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 Web site to learn the most up-to-date information.
Solar electric
Tax credits
Oregon: $3.00 per watt, up to $6,000 ($1,500 claimed per year over 4 years)
Federal: 30% of installed cost less cash incentivesEnergy Trust incentive
Up to $20,000, based on size of the solar electric system
PGE customers: $1.75 per wattDC
Pacific Power customers: $1.50 per wattDCFinancing
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, up to $1,500
Federal: 30% of installed cost less cash incentivesEnergy 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)Financing
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, up to $1,500
Federal: No federal tax credit available for poolsEnergy Trust incentive
Up to $1,000, depending on the energy savings and back-up fuel source.
Gas from NW Natural/Cascade Natural gas: $0.10/kWh
Electric from PGE of Pacific Power: $0.07/kWhFinancing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).