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Oregon Solar Incentives, Net Metering & Cost (2026)

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Written by Aditya Patil · Last updated 2026-09-24

Oregon is one of the stronger states for solar, maintaining true 1-to-1 net metering for customers of major utilities like Portland General Electric and Pacific Power. Alongside the federal tax credit, you can take advantage of upfront cash rebates from the Energy Trust of Oregon and a complete property tax exemption for your system's added value.

$120

Avg. monthly bill

16.32¢/kWh

Avg. electricity rate

1-to-1 Retail

Net metering

PGE & Pacific Power

3.77

Peak sun hours

daily average

Oregon solar incentives & rebates

Oregon homeowners benefit from a combination of utility-specific upfront rebates and statewide tax exemptions. The most robust programs are administered through the Energy Trust of Oregon for customers of PGE and Pacific Power. Income-qualified homeowners can access even higher rebate tiers through the Solar Within Reach program.

ProgramAmountStatus
Energy Trust of Oregon - Standard Solar Incentive$3,500 flat incentive for PGE customers; $2,500 flat incentive for Pacific Power customers.open
Energy Trust of Oregon - Solar Within Reach (Income-Qualified)$1.25 per watt (up to $7,500) for PGE customers; $0.85 per watt (up to $5,250) for Pacific Power customers.open
Energy Trust of Oregon - Battery Storage Incentive$400/kWh (up to $5,000) for PGE customers; $288/kWh (up to $3,600) for Pacific Power customers.open
Oregon Solar + Storage Rebate ProgramUp to $5,000 for solar and $2,500 for paired battery storage.closed
Alternative Energy Systems Property Tax Exemption100% of the added real market value from the qualifying renewable energy system is exempt from property tax assessment.open

Net metering rules in Oregon

Oregon state law guarantees net metering for utility customers. For the major investor-owned utilities—Portland General Electric (PGE) and Pacific Power—this works as a straightforward 1-to-1 exchange. When your solar panels push excess power into the grid, you receive a full retail-rate credit for each kilowatt-hour.

These credits carry forward month-to-month to offset your winter bills when solar production is lower. At the end of the annual 12-month billing cycle (which usually resets in March), any unused credits are forfeited. Instead of paying you for this excess energy, utilities calculate its wholesale value and donate those funds to low-income assistance programs. Because of this rule, it is highly recommended to size your solar system to cover 100% of your annual electricity needs, but not more.

Policy type1-to-1 full retail net metering
Monthly rolloverExcess kWh carries over to next month
Annual true-upUsually March billing cycle
True-up payoutRemaining credits donated to low-income programs (not cashed out)
System size limitGenerally 25 kW for residential (major IOUs)

Battery storage & VPP programs

Oregon is a leader in Virtual Power Plant (VPP) programs, which pay you for letting the utility use a portion of your home battery during periods of high grid demand. These programs still guarantee you keep a reserved amount of backup power for outages.

Energy Trust of Oregon Battery Incentives

ETO offers upfront cash incentives for battery storage paired with solar. PGE customers can receive $400/kWh up to $5,000, and Pacific Power customers can receive $288/kWh up to $3,600. Higher limits apply for income-qualified customers under the Solar Within Reach program.

PGE Smart Battery Pilot

Portland General Electric's residential virtual power plant (VPP) program. Customers with qualifying batteries (e.g., Tesla Powerwall, Enphase, SolarEdge) can enroll to let PGE draw energy during peak demand events (10-15 times a year). Participants earn financial incentives (e.g., $1.70 per kWh discharged) while retaining a guaranteed backup reserve for outages.

Pacific Power Wattsmart Battery Program

Pacific Power's VPP program for Oregon and Washington. Enrolled customers allow the utility to manage their qualifying battery system for grid support. Participants receive an upfront enrollment incentive of up to $600 per kW (capped at $3,000 per battery) and an ongoing annual bill credit of $15 per kW starting in the second year. A backup reserve is maintained for outages.

Oregon utility rates

UtilityResidential rateCustomers
Portland General Electric Co18.19¢/kWh828,857
PacifiCorp14.02¢/kWh547,235
City of Eugene - (OR)13.07¢/kWh89,582

FAQ

Does Oregon offer a state tax credit for solar?

No, Oregon does not currently offer a direct state income tax credit for residential solar. However, the state provides a 100% property tax exemption for the added home value of your solar system. You can also stack upfront cash rebates from the Energy Trust of Oregon with the 30% federal solar tax credit.

How does net metering work in Oregon?

For major investor-owned utilities like Portland General Electric (PGE) and Pacific Power, Oregon requires 1-to-1 retail net metering. When your panels produce more electricity than you use, the excess is credited to your next bill at the full retail rate. At the end of the 12-month billing cycle (usually in March), any leftover credits expire. The wholesale value of those expired credits is donated to utility low-income assistance programs rather than being paid out in cash.

Are there battery storage incentives in Oregon?

Yes, both upfront rebates and ongoing performance programs are available. The Energy Trust of Oregon offers upfront cash incentives for batteries paired with solar, such as $400/kWh (up to $5,000) for PGE customers. Additionally, both PGE and Pacific Power run virtual power plant (VPP) programs that pay you for allowing them to draw from your battery during peak grid demand events.

Data sources

Last updated 2026-09-24

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Written by Aditya Patil