How does solar actually work for me in oregon?
If you’re looking to go solar in Oregon, you probably have a lot of questions. The industry has changed quite a bit over the years, and many people want to understand how it works and how much it costs. For those that qualify for federal and local incentives (Do I Qualify?), as well as good financing options, the answer is pretty simple. Basically, what we are able to do is help people trade their current electrical bill for a solar bill that is as much, if not less, than their current electric bill, and for nothing out of pocket.
The major benefit of having solar, is that after you’ve paid off your solar panels, you now own 100% of your power and don’t have any bill at all. Many people in Oregon choose to go solar for the same reason they choose to own their home, instead of renting. Why spend thousands of dollars a year on something you will never own, when for the same cost, you could invest in an asset that will not only pay for itself in a few short years, but that will permanently eliminate a recurring monthly bill once it’s paid off?
Again, this is generally how it plays out for Oregon residents who qualify for the available incentives and good financing. For those who don’t, going solar may look a little different. That’s why, before you spend too much time digging into solar, We recommend finding out if you qualify for these incentives.
Oregon SOLAR INCENTIVES
Tax Credits and rebates are the primary way that the federal government, as well as Oregon power companies incentivizes people to go solar. Tax Credits work pretty simply. Rather than giving you cash to help cover the cost of your system, you get a tax break at the end of the year equal to the value of the incentive, that can then be used toward your new solar system. Local Rebates are a little different; they work more like up front deductions on the cost of your system.
Federal Tax Credit (ITC): For 2022, this incentive is valued at 30% of the cost of your new solar system. If you’re a taxpayer with a decent tax liability, you will likely be able to capture all of this incentive in the first year.
Energy Trust of Oregon: For Pacific Power and Portland General Electric customers, this incentive can grant up to $9,000 off the cost of your system, depending on your specific provider, and the availability of funds at the time of applying. Click HERE to see the incentive schedule for 2021.
Net Metering: This incentive speaks to a large misconception about going solar in Oregon. When you go solar, you aren’t actually going “offgrid” or disconnecting from your electrical provider. But, much like storing unused electricity in batteries, your electrical provider will generally allow you to store your electricity with them in the form of credits.
Your current electrical meter is likely a one-way meter, meaning it only measures how much electricity is being pulled from the electrical grid to your home.
When you install a solar system, a Net Meter will replace your current electrical meter, allowing a two-way flow of electricity. This means it will measure the amount of electricity pulled from the grid, as well as the electricity sent back to the grid from your home. When your solar panels produce more electricity than your home needs, a net meter allows you to send electricity back to the grid and store it there in the form of credits. Your meter will actually run in reverse, and will build up electrical credits for you to use later. That way, during time periods when your panels are under-producing, such as night or snowy conditions, you can use those credits and still receive free electricity.
