30% Federal Tax Credit
The federal government has put forth an incredible incentive for those considering solar power. 30% of the eligible costs related to your solar project can be taken as a federal tax credit. As long as you or your business pays federal income taxes you can take advantage of this incentive.
Keep in mind this is not merely a tax deduction. Tax deductions only reduce the income on which you pay taxes. Tax credits reduce your tax which means that every dollar of the tax credit is a dollar in your pocket.
Here’s a tax deduction example
Supposed your annual gross income is $50,000 and you have $6,000 in tax deductions (mortgage interest, health insurance premiums, etc) leaving you with $44,000 in taxable income. Furthermore, suppose that your tax rate is 25%. In this example you would pay $11,000 in taxes on $44,000 of income. Without the $6,000 in deductions, you would pay $12,500 in taxes on all $50,000 of income. The $6,000 in tax deductions saved you from paying $1,500 in actual tax dollars.
Here’s a tax credit example
Supposed you still make $50,000 annually and you still have $6,000 tax deductions, making your taxable income $44,000. Your tax rate is still 25% which means your total tax liability is $11,000. Now let’s say you had solar installed this year and the total system cost was $35,000. The federal tax credit on a $35,000 system would be $10,500 ($35,000 x 30%). Once the $10,500 solar tax credit is applied to your $11,000 tax liability, you’ll now only have $500 in tax liability.
If you’re a homeowner and you own your solar system the ETO will pay as follows:
|I’m a Customer of:||Incentive|
|Portland General Electric||$400|
Solar Within Reach
Solar Within Reach makes going solar more affordable for income-qualified households. Solar + storage systems are also eligible. With increased cash incentives, an Oregon rebate and a federal tax credit, powering your home with solar may be within reach. In addition to eligibility, you must own and live in a single-family home, manufactured home, floating home, condo or multifamily residence that is either an attached side-by-side unit or a duplex, triplex or fourplex. You must also meet Energy Trust’s income qualifications listed below.
|Household Size||Gross Annual Income MAX|
Energy Trust cash incentives dependent on system size and utility bill.
|Portland General Electric||$1.10/watt||$6,000 Maximum Incentive per home|
|Pacific Power||$1.00/watt||$6,000 Maximum Incentive per home|
If you believe you qualify for Solar Within Reach, please visit the Energy Trust of Oregon webpage to establish eligibility.
If you’re a business owner and you own your system the ETO will pay as follows:
|I’m a Customer of:||Incentive per Watt||Maximum Incentive|
|Pacific Power||$0.18/W||$18,000 (at 200 kW)|
|Annual customer cap: $18,000 (at 200 kW)|
|Maximum eligible project size: 200kW|
|Portland General Electric||$0.18/W||$18,000 (at 400 kW)|
|Annual customer cap: $18,000 (at 400 kW)|
|Maximum eligible project size: 400kW|
Click here for more details about the Energy Trust of Oregon solar incentive program.
Oregon Solar + Storage Rebate Program: Homeowners
Oregon Department of Energy classifies three customer types. Correlating rebates are listed below:
|Customer Type||Solar Rebate Calculation||Solar + Storage Rebate|
|Low or Moderate income homeowners||$1.80/watt (DC) of installed capacity, up to 60% of the net cost* or $5,000, whichever is less||Solar Incentive + $2,500 Storage rebate|
|Homeowners not considered low or moderate income, who are also eligible for an electric utility incentive||$0.20/watt (DC) of installed capacity, up to 40% of the net cost or $5,000, whichever is less||Solar Incentive + $2,500 Storage rebate|
|Homeowners not considered low or moderate income, who are not eligible for an electric utility incentive||$0.50/watt (DC) of installed capacity, up to 40% of the net cost or $5,000, whichever is less||Solar Incentive + $2,500 Storage rebate|
*ODOE defines the net cost of a system as the total of all eligible costs minus any incentive provided by an electric utility or by Energy Trust of Oregon.
For more information about eligibility, please visit State of Oregon: INCENTIVES – Oregon Solar + Storage Rebate Program: Homeowners
Customers interested in solar with paired storage systems should consult with us about what type of battery installation will work best for them. A system must be installed with “islanding” capability (the ability to stand alone apart from the grid) to be able to provide power in the event of a power outage or grid failure.
Understanding Net Metering
Solar array converts energy from sunlight into electricity.
The inverter converts the electricity produced by the solar array from direct current (DC) to alternating current (AC) for use in your home, school, or business and measures the energy produced by the solar array.
The energy is used in your home, school, or business.
The Bidirectional Meter indicates energy usage and excess energy produced.
Hear What People Have To Say!
Here are some actual reviews from some of our Portland clients: