Tax credits and utility incentives for solar energy systems.
The incentives for solar electric energy systems offer home and business owners an extraordinary opportunity to install renewable technology. The combination of tax credits and utility incentives make the purchase of a solar electric system competitive with conventional electricity.
A tax credit is deducted from the total amount a taxpayer owes to the state. Utility incentives offer cash rebates to homeowners and businesses who install renewable energy systems. Compared to many areas of the United Sates, we are fortunate to have an abundance of sunshine, and our renewable energy incentives are among the best in the country. Installing a solar-electric system in Southern Oregon makes good financial sense.
A few of the current tax credit and utility and solar energy incentives are listed below. These incentives are subject to change, so please check with us for the latest information. We also recommend consulting with your tax advisor to assess your individual situation.
Federal Tax Credits
Currently, the Federal incentive guidelines are:
- Residential and business systems
- 30% of the installed cost
- No limit to the total amount of the credit.
- 100% can be taken within the year the system is made operational (or carried forward up to 20 years).
Click for a list of all of the Federal Tax Credits and grant programs for renewable technologies.
Oregon Tax Credits
Currently, the State incentive guidelines are:
- Residential systems only
- $3.00 per AC watt
- $1.70 per DC watt
- Maximum incentive per site of $6000
- Paid out at a maximum rate of $1500 per year for 4 years.
Click for more information on the Oregon Tax Credit.
Energy Trust of Oregon
The Energy Trust of Oregon offers a cash rebate to all Pacific Power customers in Southern Oregon who install grid-tied solar electric systems.
- Residential systems
- $0.70 per watt
- Maximum incentive per site of $7000.Subtracted from your bill and paid to the contractor.
- Commercial systems
- $0.90 per watt or first 0-35 kW
- $0.90-$0.40 per watt for 36-200 kW
- Maximum incentive per site of $80,000.
- Paid to the customer upon project completion.
This incentive is not available to off-grid customers. Please visit the Energy Trust of Oregon for up-to-the-minute information on this incentive. For help evaluating the financial investment value of a residential solar system, you might try the Energy Trust Solar Calculator.
City of Ashland
The City of Ashland offers a cash incentive for all of their electric customers.
- Residential and commercial systems
- $0.50 per watt residential
- $0.75 commercial
- Maximum incentive per site of $7500
- Paid directly to the customer.
Learn more at the City of Ashland Conservation Department or call them at 541-488-5306 for further information.
Business Energy Tax Credit
The Business Energy Tax Credit used to be a very generous 50% of installed cost. Unfortunately Salem ended this credit in 2012. If you’re considering a solar system as a business investment, please contact us for more information.
Alternative Energy Systems can provide you with a detailed analysis of tax credits, incentives, and cash- flow examples. A comprehensive list of available financial incentives for all renewable technologies can be viewed here.