The cost of solar panels and installation can vary significantly based on several factors, including the size of the system, the type of panels used, and the specific installation conditions of your property. According to a recent report from Forbes, Oregon’s average solar panel cost as of July 2023 is between $2.50 to $3.02 per watt. This means that for an average solar installation of 5 kW, the cost ranges from $12,500 to $15,100.

After claiming the 30% federal solar tax credit, the cost of Oregon solar panel systems is estimated at around $2.60 per watt. Comparatively, the national average solar power system installation price is $3.00 per watt.

Here’s a closer look at how these costs break down:

1. Solar Panels: The core component of any solar energy system, solar panels typically account for about 25-30% of the total installation cost. High-efficiency panels, such as monocrystalline panels, tend to be more expensive but offer greater energy output over time.
2. Inverters: These devices convert the direct current (DC) electricity generated by the panels into alternating current (AC) electricity, which is used in homes and businesses. Inverters usually represent about 10% of the total system cost.
3. Mounting Hardware and Other Equipment: The cost of racking and mounting hardware, wiring, and other electrical components make up about 15-20% of the total cost.
4. Labor and Installation: Professional installation is crucial for ensuring the safety and efficiency of your solar system. Labor costs can vary based on the complexity of the installation but generally make up about 20-25% of the total cost.
5. Permits and Inspection Fees: These costs can vary by location but typically add an additional 5-10% to the overall cost.

Financial Incentives and Rebates

Oregon offers some of the best incentives in the country that can significantly reduce the upfront cost of solar panel installation:

Oregon Solar + Storage Rebate Program

The Oregon Solar + Storage Rebate Program offers financial benefits to residential customers and low-income service providers in Oregon. Approved contractors receive the rebates and pass the savings on to customers.

You can get up to $5,000 for a solar electric system and $2,500 for an energy storage system. For low- or moderate-income households, rebates can reach $1.80 per watt of installed capacity, covering up to 60% of the net cost or $5,000, whichever is lower. Other households can receive $0.20 per watt.

If you don’t qualify for the utility incentive, you may still get a rebate of $0.50 per watt, covering up to 40% of the net cost or $5,000, whichever is less.

For more information, visit the Oregon Solar + Storage Rebate Program page.

Solar Within Reach

Portland General Electric or Pacific Power customers with specific income levels can benefit from the Solar Within Reach Program. For example, a single household’s maximum gross annual income is $62,530, while a four-person household is capped at $120,252.

Energy Trust-approved contractors are required for this program. The cash incentive is given directly to your contractor and deducted from your invoice, reducing your overall cost.

For Portland General Electric customers, the solar incentive is $0.90 per watt, up to $5,400 per home, and the storage incentive is $750 per kWh, up to $10,000 per home. For Pacific Power customers, the solar incentive is $1.00 per watt, up to $6,000 per home, with the same storage incentive as PGE.

After installation, you can claim tax credits when you file your taxes. Visit the official website for more details.

Local Incentives

Several cities in Oregon offer additional local incentives for solar energy.

• Eugene: The Eugene Water and Electric Board (EWEB) offers a rebate of $0.40 per watt installed or $2,000, whichever is less. This incentive is limited and first-come, first-served. Visit the EWEB website for details.
• Salem: Salem Electric provides a $300 per kW installed rebate, up to 50% of project costs or $1,500. This is for net-metered systems with a capacity of 25kW or less. Check the Salem Electric website for more information.
• Ashland: Residents can receive a $600 rebate for installing home solar.

Federal Solar Tax Credit

The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), provides a 30% tax deduction on the installation cost of solar energy systems for residential and commercial properties installed between 2022 and 2032.

For example, installing a $10,000 solar system would reduce your federal taxes by $3,000. This credit applies to the total system cost, including equipment and labor.

To qualify for the ITC, you must own your solar energy system; leasing or third-party ownership via a power purchase agreement (PPA) does not qualify. The credit rate will decrease to 26% in 2033 and 22% in 2034. For more details, visit the Office of Energy Efficiency and Renewable Energy website.

Oregon Net Metering

Oregon requires utilities to offer net metering, allowing solar panel owners to earn credits for excess electricity sent back to the grid. These credits can be used to offset electricity costs when solar panels aren’t generating enough energy, such as during cloudy winter months.

Solar energy system owners can accrue credits during sunny months and use them later, potentially reducing their kilowatt-hour charges to zero for months when production exceeds consumption. They will only need to pay the basic utility service charges.

Net metering regulations can vary by utility company. For the latest information on Oregon’s net metering policies, visit the Oregon Public Utility Commission website.

For comprehensive information, please visit the respective program websites.