No State Sales Tax
| Detail | Status |
|---|---|
| Oregon state sales tax rate | 0%, No sales tax |
| Applies to equipment (panels, inverters, racking) | Yes, automatically |
| Applies to installation labor | Yes, automatically |
| Forms or certificates required | None |
| Estimated savings on a $20,000 system | ~$1,700 to $2,000 vs. a comparable-tax state |
Oregon is one of five states with no sales tax. Oregon homeowners pay no sales tax on any purchase, including solar equipment and installation. Source: Oregon Department of Revenue (T1).
Net Metering (ORS 757.300)
Oregon's net metering law (ORS 757.300) requires all utilities, including investor-owned utilities and rural electric cooperatives, to offer net metering. The Oregon Public Utility Commission (OPUC) oversees implementation and approves each utility's specific credit rates.
| Program Detail | Value |
|---|---|
| Governing statute | ORS 757.300 |
| Who must offer net metering | All Oregon utilities |
| System size limit | 25 kW (OPUC may authorize larger) |
| Program capacity cap | 0.5% of utility's historic peak demand |
| Export credit rate | Retail rate or avoided cost, per OPUC tariff approval |
| Annual credit expiration | Unused credits expire March 31 (granted to low-income programs or forfeited) |
| Regulator | Oregon Public Utility Commission (OPUC) |
Oregon Utilities, Net Metering
Tier 2 estimate; verify current rate and net metering terms at portlandgeneral.com or OPUC (opuc.state.or.us)
Tier 2 estimate; verify current rate at pacificpower.net or OPUC (opuc.state.or.us)
Tier 2 estimate; verify current rate at eweb.org
Confirm with your specific utility or at opuc.state.or.us
Energy Trust of Oregon Rebates
The Energy Trust of Oregon is the program administrator for solar rebates available to PGE and Pacific Power customers. It is funded by utility customers and operates independently. Rebates are paid directly to homeowners upon system installation. Systems must be at least 2 kW-DC and installed by an Energy Trust-approved trade ally contractor.
Battery Storage Add-On Incentives
| Utility | Battery Incentive | Maximum |
|---|---|---|
| Portland General Electric | $400 per kWh of storage capacity | $5,000 |
| Pacific Power | $240 per kWh of storage capacity | $3,000 |
- Rebate paid directly to homeowner after installation
- System must be at least 2 kW-DC
- Must use Energy Trust-approved trade ally contractor
- Can be combined with state rebates (when available)
- Battery storage incentives available as add-on
Oregon Solar + Storage Rebate (OSSRP)
The OSSRP is administered by the Oregon Department of Energy (ODOE). When open, it provides income-scaled rebates for residential solar installations. Funding is limited and programs open on a first-come, first-served basis. Rebates listed below reflect amounts from the most recent open funding period.
| Applicant Category | Solar Rebate | Max Rebate |
|---|---|---|
| Low-to-moderate income (LMI) households | $1.80 per watt DC | $5,000 |
| Non-LMI, with participating utility incentive | $0.20 per watt DC | $5,000 |
| Non-LMI, without utility incentive | $0.50 per watt DC | $5,000 |
| Battery storage (all income levels) | $300 per kWh | $2,500 |
- Administered by Oregon Department of Energy (ODOE)
- Can be combined with Energy Trust rebates (when both open)
- LMI households receive significantly higher per-watt amounts
- Check oregon.gov/energy for program reopening announcements
Property Tax Exemption (ORS 307.175)
| Detail | Status |
|---|---|
| Governing statute | ORS 307.175 |
| What is exempted | The added property value attributable to the solar installation |
| System types covered | Residential and commercial solar |
| Geographic scope | Statewide |
| Expiration | July 1, 2029 |
| Is exemption automatic? | No, contact your county assessor |
State Income Tax Credit (ORS 316.116)
Oregon homeowners installing solar in 2025 cannot claim any Oregon state income tax credit. The OSSRP rebate and Energy Trust rebates are Oregon's primary state-level solar incentives for current installations.
Federal Solar Tax Credit (§25D)
| Detail | Status |
|---|---|
| Credit for installations completed through Dec 31, 2025 | 30% of eligible system cost |
| Credit for systems whose installation was completed after Dec 31, 2025 | 0%, Eliminated by P.L. 119-21 |
| Battery storage (if paired with solar) | Subject to same 12/31/2025 cutoff |
Source: IRS.gov (T1). Consult a tax professional for guidance on your specific situation.
Sources & Verification
- T1ORS 757.300, Oregon net metering statute. oregonlegislature.gov ↗
- T1ORS 307.175, Solar property tax exemption (added value, through July 1, 2029). oregonlegislature.gov ↗
- T1ORS 316.116, Oregon solar income tax credit (expired January 1, 2018). Oregon Legislature.
- T1Oregon Department of Revenue, No state sales tax. oregon.gov/DOR ↗
- T1Energy Trust of Oregon, Solar incentives for PGE and Pacific Power customers. energytrust.org ↗
- T1Oregon Department of Energy, Oregon Solar + Storage Rebate Program (OSSRP). oregon.gov/energy ↗
- T1IRS.gov, §25D residential energy credit; P.L. 119-21 repeal effective 12/31/2025. irs.gov ↗
- T2Portland General Electric, estimated retail rate (~14¢/kWh) and proposed net metering changes. Verify at portlandgeneral.com and opuc.state.or.us.
- T2Pacific Power, estimated retail rate (~12¢/kWh). Verify at pacificpower.net.
- T2Eugene Water & Electric Board, estimated retail rate (~10¢/kWh). Verify at eweb.org.
T1 = Primary source (state agency, statute, program administrator, IRS.gov). T2 = Secondary source (utility sites, industry references). All information subject to change. Verify with program administrators and your tax professional before making decisions. Last reviewed: October 2025.