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State

All Oregonians can take advantage of the 26%
Federal Tax Credit
, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.

There may still be other local rebates from your city, county, or utility. Check below!

Oregon Solar PV Rebates & Incentives

Data from DSIRE. Last updated: 04/19/2024

NameAdministratorBudgetLast UpdatedEnd DateDSIRE ID
Summary
Renewable Energy Systems ExemptionOregon Department of Energy02/22/2407/01/29165

Note: This exemption may not be allowed for the tax years beginning after July 1, 2029.

Oregon law states that any change in real market value to property due to the installation of a qualifying renewable energy system is exempt from assessment of the property’s value for property tax purposes. Qualifying renewables include solar, geothermal, wind, water, fuel cell or methane gas systems used to heat, cool or generate electricity. This exemption is intended for end users and only applies to systems that are net metered or primarily intended to offset on-site electricity use.  Systems installed on real property that is otherwise exempt from property taxation will continue to be exempt.

Small-Scale Energy Loan ProgramOregon Department of Energy10/10/2304/19/24236

Note: This program is currently insolvent and has been on hiatus since 2015. The insolvency is a result of the default of high-risk loans that occurred between 2007 and 2012 and the lack of new loan origination since 2015. The program will require General Fund support to meet bond debt service payments in 2022 and 2023. The 2021 Legislature in SB 5506 (2021) appropriated $3.5 million General Fund to ODOE to pay SELP bond debt service through the 2021-23 biennium. As of October 2023, SELP is not currently accepting new loan applications.

The Oregon Small-Scale Energy Loan Program (SELP) was created in 1979 after voters approved a constitutional amendment authorizing the sale of bonds to finance small-scale, local energy projects and is administered by the Oregon Department of Energy. The sale of bonds is made on a periodic basis and, occasionally, may be done to accommodate a particularly large loan request. 

The program offers low-interest loans for projects that:

  • Conserves energy;
  • Produce energy from renewable resources such as water, wind, geothermal, solar, biomass, waste materials or waste heat;
  • Use recycled materials to create products; or
  • Use alternative fuels.

Loans are available to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits. School districts receive special rates. 

Though there is no legal maximum loan, the size of loans generally ranges from $20,000 to $20 million. Terms vary, but are generally set to match the term of the bonds that funded the loans. Loan terms may not exceed project life. Loan fees are set based on the size of the loan and range from 1 - 2% of the loan  amount requested.

Ashland Electric Utility - Photovoltaic Rebate ProgramAshland Electric Utilities Department10/31/2304/19/24421

The City of Ashland offers residential and commercial electric customers installing photovoltaic systems a rebate. Before January 1, 2023, cash incentives for interconnected solar electric systems were $0.25 per watt up to a maximum of $5,000 per system. Beginning January 1, 2023, solar electric installations that pass their electric inspections can receive incentive payments of $600.

To qualify, the owner of the system must be a tenant of the facility where the system is installed. The system must be interconnected with the electric service at the facility and be net-metered. Systems must have at least 2,500 W of panels with total solar resource fractions of at least 75%. The system must be installed with permits from the City’s Building Safety Division and comply with all permit requirements.

Business Energy Investment Tax Credit (ITC)U.S. Internal Revenue Service08/29/2304/19/24658

Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including expanding the eligible technologies, extending the expiration date, modifying the scheduled step-down in its value, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 48 of the Internal Revenue Code and replaces it with a new technology-neutral tax credit under section 48E of the Internal Revenue Code. The summary below describes the current section 48 tax credit as modified by the Inflation Reduction Act, and below that, the new 48E tax credit.   

The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently and most significantly by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full 30% tax credit. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022 . According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023. The credit for different project types and available bonus credits is described below.


Base Credit

Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 30% tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit of 30%. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. 

Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines (January 29, 2023) and no later than January 1, 2025 will receive a base tax credit of 6%. However, projects can qualify for the full 30% tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for 5 years after project completion are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. 

Bonus Credits

Projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States can qualify for the Domestic Content Bonus. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Domestic Content Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Domestic Content Bonus increases the tax credit by 2 percentage points. Note, the 40% requirement for manufactured products increases over time, eventually requiring 55% domestic content for projects commenced after 2026, The IRS issued Notice 2023-38 in May 2023, which provides further guidance on the domestic content bonus.     

Projects that are located within an energy community can receive the Energy Community Bonus. To qualify, a facility must be located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Energy Community Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Energy Community Bonus increases the tax credit by 2 percentage points. 

The Treasury Department issued Notice 2023- 29 in April 2023, which provides initial guidance on the Energy Community Bonus Credit. The Treasury Department later updated and clarified its guidance in June 2023 with Notice 2023-45. The Treasury Department also issued Notice 2023-47 in June 2023, which includes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category. The Department of Energy has also released a GIS map showing the locations of qualifying energy communities.  

Solar and wind facilities less than 5 MW may also be eligible for low-income bonuses. A project built in a low-income community as defined by the New Markets Tax Credit or on Indian Land can receive an increased tax credit of 10 percentage points. The Department of Energy has also released a GIS map showing qualifying low-income communities. A project associated with a low-income residential building project or a low-income economic benefit project can receive an increased tax credit of 20 percentage points. These bonuses are capped at 1.6 GW of projects per year.  The IRS issued Notice 2023-17 in February 2023, to allocate the cap across different categories of projects. The IRS also issued final regulations in August to provide further guidance on the iow-income communities bonus credit. Additional information can be found on the U.S. Department of Energy's webpage dedicated to the ow-income communities bonus credit.

Eligible Technologies

  • Solar Technologies
  • Fuel Cells
  • Wind Turbines 
  • Geothermal Systems
  • Microturbines
  • Combined Heat and Power (CHP)
  • Offshore Wind
  • Waste Energy Recovery. Qualified waste energy recovery property means property that generates electricity solely from heat from buildings or equipment if the primary purpose of such building or equipment is not the generation of electricity. The term “waste energy recovery property” does not include any property that has a capacity in excess of 50 megawatts.
  • Energy Storage Systems, both paired with generation and installed as a stand-alone system
  • Thermal Energy Storage Systems
  • Qualified Biogas Property
  • Microgrid Controllers
  • Interconnection Property associated with the installation of energy property with a maximum net output of not greater than 5 MW-AC to provide for the transmission or distribution of the electricity produced or stored by such property, and which are properly chargeable to the capital account of the taxpayer.

Credit Monetization

Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. 

The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. 

The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed.

Clean Electricity Investment Tax Credit (48E)

Section 13702 of the Inflation Reduction Act created a new tax credit, the Clean Electricity Investment Tax Credit to replace the traditional ITC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the ITC, but is not technology-specific. It applies to all generation facilities and energy storage systems that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, but will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. 


Residential Energy Conservation Subsidy Exclusion (Personal)U.S. Internal Revenue Service07/20/2204/19/24666

According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay).

The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated.

The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525.


* The term "public utility" is defined as an entity "engaged in the sale of electricity or natural gas to residential, commercial, or industrial customers for use by such customers." The term includes federal, state and local government entities.

Modified Accelerated Cost-Recovery System (MACRS)U.S. Internal Revenue Service07/12/2304/19/24676

Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Bonus depreciation steps down by 20% each year beginning with 80% in 2023..  

Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:

  • a variety of solar-electric and solar-thermal technologies
  • fuel cells and microturbines
  • geothermal electric
  • direct-use geothermal and geothermal heat pumps
  • small wind (100 kW or less)
  • combined heat and power (CHP)
  • the provision which defines ITC technologies as eligible also adds the general term "wind" as an eligible technology, extending the five-year schedule to large wind facilities as well.

In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.

The 5-year schedule for most types of solar, geothermal, and wind property has been in place since 1986. The federal Energy Policy Act of 2005 (EPAct 2005) classified fuel cells, microturbines and solar hybrid lighting technologies as five-year property as well by adding them to § 48(a)(3)(A). This section was further expanded in October 2008 by the addition of geothermal heat pumps, combined heat and power, and small wind under The Energy Improvement and Extension Act of 2008.

Bonus Depreciation

Bonus Depreciation has been sporadically available at different levels during different years. Most recently, The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023.

Bonus Depreciation History

The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125)extended  these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year.

For more information on the federal MACRS, see IRS Publication 946, IRS Form 4562: Depreciation and Amortization, and Instructions for Form 4562. The IRS web site provides a search mechanism for forms and publications. Enter the relevant form, publication name or number, and click "GO" to receive the requested form or publication. For guidance on bonus depreciation, including information relating to the election to claim either 50% or 100% bonus depreciation, retroactive elections to claim 50% bonus depreciation for property placed in service during 2010, and eligible property, please see IRS Rev. Proc. 2011-26.


*Note that the definitions of eligible technologies included in this entry are somewhat simplified versions of those contained in tax code, which often contain additional caveats, restrictions, and modifications. Those interested in this incentive should review the relevant sections of the code in detail prior to making business decisions.

Custom Renewable Energy ProjectsEnergy Trust of Oregon10/30/2304/19/24709
Energy Trust provides project development assistance including, but not limited to, grant writing assistance, feasibility studies, final design, permitting, and utility interconnection. Energy Trust can pay up to 50% of the cost of hiring an outside consultant to provide expert assistance for these activities, up to a maximum of $200,000.

Energy Trust provides incentives towards the construction costs of biopower, geothermal, or hydropower projects. Incentive levels are based on a project’s cost in comparison to the market value of the energy produced, or “above-market cost”. A potential installation incentive is based on a net-present value assessment that accounts for all the project’s costs and revenues. In return for funding contribution, Energy Trust asks for a negotiated share of the project’s Environmental Attributes (e.g. Renewable Energy Certificates), which are held in trust for the ratepayers who pay the public purpose charge that funds their work. To be eligible for an Energy Trust incentive, projects must be less than 20 MW in nameplate capacity and be located in the service territory of, or deliver power to, Portland General Electric or Pacific Power in Oregon.

Incentives are subject to funding availability and may change.

Solar Incentives

Energy Trust offers cash incentives that reduce the upfront cost of solar installations. The incentive amount depends on the size of your system and your electric utility. Incentives are subject to funding availability and may change at any time.

Commercial

Portland General Electric     $15,000 max.     $0.15/watt
Project size cap: 480 kW-DC

Pacific Power     $15,000 max.     $0.15/watt
Project size cap: 480 kW-DC

Residential

Portland General Electric     $400 per project
Pacific Power     $450 per project

Residential Energy Conservation Subsidy Exclusion (Corporate)U.S. Internal Revenue Service05/19/2304/19/24727

According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay).

The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated.

The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. 


* The term "public utility" is defined as an entity "engaged in the sale of electricity or natural gas to residential, commercial, or industrial customers for use by such customers." The term includes federal, state and local government entities.

Renewable Electricity Production Tax Credit (PTC)U.S. Internal Revenue Service08/29/2304/19/24734

Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax credit.   

The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service.

Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full value of the tax credit -- 2.6 cents per kilowatt-hour (kWh) for wind, closed-loop biomass, and geothermal energy; 1.3 cents per kWh for open-loop biomass facilities, small irrigation power facilities, landfill gas facilities and trash facilities. In late-2022 or 2023, the Treasury Secretary will issue guidance for these new labor provisions. The credit for different project types and available bonus credits is described below.

Base Credit

Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 1.3 or 2.6 cents/kWh (depending on the facility type) tax credit. This amount may be adjusted annually for inflation. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. 

Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines and no later than January 1, 2025 will receive a base tax credit of 0.5 cents/kWh. However, projects can qualify for the full tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for the entire 10-year PTC period are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. 

Bonus Credits

The Domestic Content Bonus increases the credit amount by 10% for projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States. Note, the required percentage of domestic manufactured products for offshore wind facilities is 20%. The IRS issued Notice 2023-38 in May 2023, which provided guidance on the domestic content bonus.     

The Energy Community Bonus increases the credit amount by 10% for projects that are located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. 

The Treasury Department issued Notice 2023- 29 in April 2023, which provided initial guidance on the Energy Community Bonus Credit. The Treasury Department later updated and clarified its guidance in June 2023 with Notice 2023-45. The Treasury Department also issued Notice 2023-47 in June 2023, which includes lists of information that taxpayers may use to determine whether they meet certain requirements under the Statistical Area Category or the Coal Closure Category. The Department of Energy has also released a GIS map showing the locations of qualifying energy communities.  

Credit Monetization

Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. 

The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. 

The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed.

Clean Energy Production Tax Credit (45Y)

Section 13701 of the Inflation Reduction Act created a new tax credit, the Clean Energy Production Tax Credit to replace the traditional PTC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the PTC, but is not technology-specific. It applies to all generation facilities that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, and all technologies that satisfy the labor requirements will be eligible for the full value of the tax credit as adjusted for inflation. The credit will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. 


Energy-Efficient Mortgages08/05/2004/19/24742

Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.

FHA Energy Efficient Mortgages
The FHA allows lenders to add up to 100% of energy efficiency improvements to an existing mortgage loan with certain restrictions. FHA mortgage limits vary by county, state and the number of units in a dwelling. See their website for more details. These mortgages were previously limited to $8,000.The maximum amount of the portion of an energy efficient mortgage allowed for energy improvements is now the lesser of 5% of:

  • The value of the property,
  • 115% of the median area price of a single-family dwelling, or
  • 150% of the Freddie Mac conforming loan limit

Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures. 

Borrowers may include closing costs and the up-front mortgage insurance premium in the total cost of the loan. The loan is available to anyone who meets the income requirements for FHA’s Section 203 (b), provided the applicant can meet the monthly mortgage payments. New and existing owner-occupied homes of up to two units qualify for this loan. Cooperative units are not eligible. Homebuyers should submit applications to their local HUD Field Office through an FHA-approved lending institution.

Department of Veterans Affairs (VA) Energy Efficient Mortgages
The VA insures EEMs to be used in conjunction with VA loans either for the purchase of existing homes or for refinancing loans secured by the dwelling. Homebuyers may borrow up to $3,000 if only documentation of improvement costs or contractor bids is submitted, or up to $6,000 if the projected energy savings are greater than the increase in mortgage payments. Loans may exceed this amount at the discretion of the VA. Applicants may not include the cost of their own labor in the total amount. No additional home appraisal is needed, but applicants must submit a HER, contractor bids and certain other documentation. The VA insures 50% of the loan if taken by itself, but it may insure less if the total value of the mortgage exceeds a certain amount.

This mortgage is available to qualified military personnel, reservists and veterans. Applicants should secure a certificate of eligibility from their local lending office and submit it to a VA-approved private lender. If the loan is approved, the VA guarantees the loan when it is closed.

Conventional EEMs
Conventional mortgages are not backed by a federal agency. Private lenders sell loans to Fannie Mae and Freddie Mac, which in turn allows homebuyers to borrow up to 15% of an existing home’s appraised value for improvements documented by a HER.

Fannie Mae also lends up to 5% for Energy Star new homes. Fannie Mae EEMs are available to single-family, owner-occupied units, and Fannie Mae provides EEMs to those whose income might otherwise disqualify them from receiving the loans by allowing approved lenders to adjust borrowers’ debt-to-income ratio by 2%. The value of the improvements is immediately added to the total appraised value of the home.

Freddie Mac offers GreenChOICE mortgages to "provide greater affordability for borrowers, offer more flexibility and combine the flexibilities of Home Possible Mortgages to offer borrowers additional affordable financing opportunities." Borrowers should apply directly to the lender. Click here for more details.

ENERGY STAR Partnership for Lenders
To promote EEMs and lenders who offer them, the federal ENERGY STAR program offers a partnership program for lenders who provide EEMs to borrowers. Becoming a partner allows lenders to utilize the Energy Star brand to promote themselves as Energy Star partners offering EEMs. To become a lender, partner lenders must first provide proof that they know how to write EEMs. To maintain their partnership benefits, lenders must write a certain number of EEMs per year. Energy Star does not have a lender certification program or process. Click here for more information about ENERGY STAR's lender partnership program, and here to access the partner locator tool. ENERGY STAR requires that its lender partners provide EEMs to qualified borrowers regardless of whether it is an FHA EEM, Fannie Mae EEM, or VA EEM.

USDA - Rural Energy for America Program (REAP) GrantsU.S. Department of Agriculture$600 million for FY 201808/21/1804/19/24917

Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. 

The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance.

Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. 

Application due dates are published annually in the Notice of Funding Availability. 

Eligibility

Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas.

Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees.

For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator.

Regional rural energy coordinators provide loan and grant applications upon request.

History

The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies.

* The Renewable Energy Systems and Energy Efficiency Improvements Program was created by the USDA pursuant to Section 9006 of the 2002 federal Farm Security and Rural Investment Act of 2002. Funding in the amount of $23 million per year was appropriated for each fiscal year from FY 2003-2007. In March 2008, the USDA announced that it would accept $220.9 million in applications for grants, loan guarantees, and loan/grant combination packages under the Renewable Energy Systems and Energy Efficiency Improvements Program. The application deadline was June 16, 2008.

Land grant colleges and universities are referred to in the summary table as "schools" and "institutional" eligible sectors. K-12 schools are not eligible for this grant.

Office of Indian Energy Policy and Programs - Funding OpportunitiesU.S. Department of Energy02/26/2004/19/24918

The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures.

DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements.

Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance.

Solar Electric Incentive ProgramEnergy Trust of Oregon05/31/2304/19/24936

Energy Trust of Oregon’s Solar Electric Incentive Program, launched in May 2003, is available to customers of Pacific Power and PGE who install new photovoltaic (PV) systems on new or existing homes, multifamily homes, commercial buildings, farms, and public entity facilities. Energy Trust allocates solar incentives into steps, such that when funding in a given allocation is fully subscribed, the incentive amount steps down. A status report with current funding allocations and availability is available on Energy Trust's website. Current incentive amounts are as follows:

Residential

  • PGE: $400 per project
  • Pacific Power: $450 per project

Commercial Buildings, Multifamily Buildings, and Farms

  • PGE: $0.15/watt up to $15,000 (480 kW-DC max)
  • Pacific Power: $0.18/watt up to $18,000 (480 kW-DC max)

*Refer to the Energy Trust of Oregon Commercial Estimator for more detailed information on commercial incentives.

Public Entities

  • PGE: $0.18/watt up to $18,000 (480 kW-DC max)
  • Pacific Power: $0.18/watt up to $18,000 (480 kW-DC max)

Public entities receiving service from either utility may also receive a Solar Development Assistance incentive equal to 90% of the cost up to $1,800.


Energy Trust will provide referrals to contractors from their Trade Ally Network (self-installed systems will not qualify). The solar contractor selected advises the customer on installation options and best siting designs to obtain the maximum performance and satisfaction from the solar electric system. The contractor will provide a system quote that estimates the PV system annual performance, installation date, and the cost after Energy Trust incentive deductions. After Energy Trust approves the customer's PV system, the buy-down incentive will be paid to the solar contractor and deducted from the final cost.

Residential Renewable Energy Tax CreditU.S. Internal Revenue Service08/16/2212/31/341235

Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376.

A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below.

Solar-electric property

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2022
  • 30% for systems placed in service after 12/31/2021 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Solar water-heating property

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2022
  • 30% for systems placed in service after 12/31/2021 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
  • Equipment must be certified for performance by the Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
  • At least half the energy used to heat the dwelling's water must be from solar in order for the solar water-heating property expenditures to be eligible.
  • The tax credit does not apply to solar water-heating property for swimming pools or hot tubs.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Fuel cell property

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2022
  • 30% for systems placed in service after 12/31/2021 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
  • The maximum credit is $500 per half kilowatt (kW).
  • The fuel cell must have a nameplate capacity of at least 0.5 kW of electricity using an electrochemical process and an electricity-only generation efficiency greater than 30%.
  • In case of joint occupancy, the maximum qualifying costs that can be taken into account by all occupants for figuring the credit is $1,667 per 0.5 kW. This does not apply to married individuals filing a joint return. The credit that may be claimed by each individual is proportional to the costs he or she paid.
  • The home served by the system must be the taxpayer’s principal residence.

Small wind-energy property

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2022
  • 30% for systems placed in service after 12/31/2021 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
  • The home served by the system does not have to be the taxpayer’s principal residence.

Geothermal heat pumps

  • 30% for systems placed in service by 12/31/2019
  • 26% for systems placed in service after 12/31/2019 and before 01/01/2022
  • 30% for systems placed in service after 12/31/2021 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • There is no maximum credit for systems placed in service after 2008.
  • Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2034.
  • The geothermal heat pump must meet federal Energy Star criteria.
  • The home served by the system does not have to be the taxpayer’s principal residence

Battery Storage Systems (Standalone Systems)

  • 0% for systems placed in service before 1/1/2023
  • 30% for systems placed in service after 12/31/2022 and before 01/01/2033
  • 26% for systems placed in service after 12/31/2032 and before 01/01/2034
  • 22% for systems placed in service after 12/31/2033 and before 01/01/2035
  • The system must have a capacity of at least 3 kilowatt hours
  • The home served by the system does not have to be the taxpayer’s principal residence.


Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies.

Energy Storage

Prior to the enactment of the Inflation Reduction Act of 2022, the federal tax code did not explicitly reference energy storage, so stand-alone energy storage systems did not qualify for the tax credit.  However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit.  


History

Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008.

Home Energy Solutions for Existing HomesEnergy Trust of Oregon05/23/2304/19/242426

Energy Trust of Oregon offers a variety of incentives and services through their Residential incentives program. All equipment eligible for incentives needs to meet the efficiency requirements stated in the program guidelines. Incentive amounts vary by project type with eligible residences including owned or rented single family, manufactured, townhouses, duplex, triplex, or fourplex homes. Customers can see all individual product incentives and eligibility requirements here or here. Income-qualified households may be provided additional incentives.

Homeowners may use Energy Trust's online Home Assessment Tool to receive personalized recommendations on how to improve energy efficiency. After the new measures have been installed by a licensed trade ally contractor, Energy Trust may request a follow-up inspection to verify the installation of all measures for which an incentive has been requested. To be eligible for these incentives, the home must be located within the service territory of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.

In addition to the incentives mentioned above, Energy Trust has various limited-time offers for home energy efficiency improvements. Details about these incentives can be found on Energy Trust's Promotions page.


New Buildings ProgramEnergy Trust of Oregon05/17/2304/19/242438

Note: Incentive offers are subject to funding availability and may change, see Energy Trust’s website for current offerings.

Energy Trust Oregon offers energy efficient services and incentives for commercial, industrial, multifamily, or institutional buildings. Eligible buildings must be a new construction, undergoing a major renovation, or adding an addition to an existing structure or a tenant improvement. Buildings that are located within the Energy Trust service territory and are serviced by Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista may qualify for financial assistance and technical support. Incentives and resources are available for design support, installation and construction, market solutions, and solar.

Incentives vary by project type:

Early Design Assistance: up to $2,500 - $3,500

Energy Efficient Equipment: varies by equipment type

Market Solutions: $0.20/sq. Ft. - $0.50/sq. ft.

Solar: up to $500 - $15,000


 

USDA - Rural Energy for America Program (REAP) Loan GuaranteesU.S. Department of Agriculture08/21/1804/19/242511

The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance.

Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website.

Application due dates are published annually in the Notice of Funding Availability.

Eligibility

Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas.

Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees.

For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator.

Regional rural energy coordinators provide loan and grant applications upon request.

History

The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies.

* The Renewable Energy Systems and Energy Efficiency Improvements Program was created by the USDA pursuant to Section 9006 of the 2002 federal Farm Security and Rural Investment Act of 2002Funding in the amount of $23 million per year was appropriated for each fiscal year from FY 2003-2007. In March 2008, the USDA announced that it would accept $220.9 million in applications for grants, loan guarantees, and loan/grant combination packages under the Renewable Energy Systems and Energy Efficiency Improvements Program. The application deadline was June 16, 2008.

Land grant colleges and universities are referred to in the summary as "schools" and "institutional" eligible sectors. K-12 schools are not eligible for this grant.

EWEB - Solar Electric Program (Rebate)Eugene Water & Electric Board10/31/2304/19/242526

Note: the 2023 Solar PV Program incentive budget has been fully allocated. Customers can apply in 2024.

The Eugene Water & Electric Board's (EWEB) Solar Electric Program offers financial incentives for residential, nonprofit, and government customers that generate electricity from solar photovoltaic (PV) systems. 

The 2023 incentive amount for residential net metered customers is $0.40 per watt-AC, with a maximum incentive of $2,500 per EWEB electric meter. The commercial (nonprofits and public entities only) incentive amount is $0.50 per watt-AC, with a maximum of $12,500 per EWEB electric meter. Rebate amounts are based on the electrical output of the system after equipment and site losses are calculated. Under the rebate program, customers retain ownership of all renewable-energy credits (RECs) associated with customer generation. There is a reservation system for customers taking the rebate under the net metering program, with aggregate caps for each of three reservation periods. Customers that do not meet an 85% total solar resource fraction are eligible for net metering and interconnection, but not incentives. 

Interested customers should contact EWEB early in the process before installing a system. All system owners must submit an EWEB Solar Electric Program Application as well as execute a power purchase agreement. A building permit is required, and all systems must be inspected first by city or county building officials and then by EWEB. Installation must be performed by an approved solar contractor, and residential customers must obtain at least two bids. All system equipment must be UL-listed. All PV modules and inverters must be listed and rated in the California Energy Commission’s Emerging Renewables Program

U.S. Department of Energy - Loan Guarantee ProgramU.S. Department of Energy09/08/2204/19/243071
Note: The Inflation Reduction Act (H.R. 5376) made several changes to this program. It appropriated approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. This, in turn, increased the loan authority in LPO’s existing loan programs by approximately $100 billion. The Inflation Reduction Act also adds a new loan program, the Energy Infrastructure Reinvestment (EIR) Program (section 1706), to help retool, repower, repurpose, or replace energy infrastructure that has ceased operations or to improve the efficiency of infrastructure that is currently operating. 

Title 17 Program

Section 1703 of Title 17 of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program.  

Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects.

The Inflation Reduction Act added an additional $40 billion of loan authority to Section 1703 program. The legislation appropriated $3.6 billion in credit subsidy to support the cost of those loans and set aside a percentage of these amounts for administrative expenses to help carry out the program, including monitoring and originating new loans. This new loan authority is open to all currently eligible Title 17 Innovative Clean Energy technology categories, including fossil energy and nuclear energy. The Inflation Reduction Act appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. Click here for more information about how a project that reduces greenhouse gas emissions can be eligible without meeting the innovative technology requirement if the project receives support from a State Energy Financing Institution . 

Energy Infrastructure Reinvestment (EIR) Program (Section 1706)

The Inflation Reduction Act also created a new program under Title 17, the Energy Infrastructure Reinvestment (EIR) Program. The new program targets projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. The Inflation Reduction Act appropriated $5 billion through September 30, 2026, to carry out EIR, with a total cap on loans of up to $250 billion. 

Advanced Technology Vehicles Manufacturing Loan Program

LPO initially had $15.1 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007.  To date, the program has loaned $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles. Read more about LPO's ATVM portfolio. The Inflation Reduction Act removed the $25 billion cap on the total amount of loans it can award and appropriated $3 billion to remain available through September 30, 2028 for the costs of direct loans under ATVM. In addition to amounts supported by currently appropriated credit subsidy, this $3 billion is estimated to provide for an additional ~$40 billion in loan authority for a total estimated available loan authority under ATVM of ~$55.1 billion. 

Tribal Energy Projects

The Tribal Energy Loan Guarantee Program (TELGP) supports tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe federally recognized Indian tribe or Alaska Native Corporation. Under this solicitation, The Inflation Reduction Act increased the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. It also provided $75 million to remain available through September 30, 2028 to carry out TELGP under section 2602(c) of the Energy Policy Act of 1992.

New Homes Incentive ProgramEnergy Trust of Oregon05/30/2304/19/243142

Using EPS, an energy performance scoring tool that measures a newly built home’s energy consumption, electricity generated from solar, and utility costs, Energy Trust offers builders cash incentives for energy efficient homes built in Oregon. To qualify for this incentive, builders must become Energy Trust of Oregon trade allies. Incentives are offered on a sliding scale based on performance above a typical newly built home and homes must be at least 10% more efficient than a typical newly built home to qualify. See the program overview for a sample of some of the incentives available.

To receive this incentive, builders must select a program-approved verifier prior to construction and before installing drywall. Builders will submit home plans to their verifier who will then use energy modeling software to estimate the energy savings and determine the incentive amount. More incentives are available for solar electric systems and additional energy-efficient features such as smart thermostats and efficient fireplaces. The verifier will inspect the home after insulation is installed and before drywall is completed. During this inspection, the verifier will perform diagnostic tests to evaluate energy performance. Once the home is complete, the verifier will complete a final visit to ensure the home meets EPS requirements. The verifier will then update the project model with inspection details and performance results, confirm the incentive, and issue the final EPS.

Additional incentives may be available if builders work with their verifier to host an early design assistance meeting or if the low income or solar ready requirements are met.

To be eligible for these incentives, the home must be located within the service territory of Portland General Electric, Pacific Power, NW Natural, Cascade Natural Gas, or Avista.

Salem Electric - Photovoltaic Rebate ProgramSalem Electric10/31/2304/19/243557

Salem Electric offers a rebate to residential customers who install qualified solar photovoltaic (PV) systems. The rebate offered is $300 per installed kW, up to a cap of 50% of project costs or $1,500. In order to take advantage of this rebate, systems must be 25 kW or smaller, and comply with Salem Electric’s Net Metering Policy.

System owners must apply for the rebate and have the project approved prior to beginning work on the system. Systems must be net-metered and meet the equipment requirements established by the Oregon Department of Energy (ODOE). System owners must use an installer certified by the ODOE and obtain at least two bids. Salem Electric will conduct a final inspection and issue the rebate after the final inspection.

USDA - High Energy Cost Grant ProgramUSDA Rural Utilities Service$10 million (2021 solicitation)07/20/2204/19/244359

NOTE: The most recent solicitation for this program closed July 6, 2021. Please check the program website for information on future solicitations.

The U.S. Department of Agriculture (USDA) offers an ongoing grant program for the improvement of energy generation, transmission, and distribution facilities in rural communities. This program began in 2000. Eligibility is limited to projects in communities that have average home energy costs at least 275% above the national average. Retail power suppliers serving rural areas are eligible to apply for grant funding, including non-profits (cooperatives and limited dividend or mutual associations), commercial entities, state and local governments entities, and tribal governments. Under the most recent solicitation for projects, a total of $7 million was available for qualifying projects. Under this solicitation grants ranging from $100,000 to $3 million were available for a variety of activities, including:

  • Electric generation, transmission, and distribution facilities;
  • Natural gas or petroleum storage or distribution facilities;
  • Renewable energy facilities used for on-grid or off-grid electric power generation, water or space heating, or process heating and power;
  • Backup up or emergency power generation or energy storage equipment; and
  • Weatherization of residential and community property, or other energy efficiency or conservation programs.

This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program.

Central Lincoln People's Utility District - Renewable Energy Incentive ProgramCentral Lincoln People's Utility District10/31/2304/19/245377

Central Lincoln People's Utility District provides financial incentives for its commercial and residential customers to install photovoltaic (PV), solar water heating, wind, or hydro electric systems on their property. Customer’s may also pair a battery storage system with any qualifying generation system, however, the battery system must have 1 kW-dc of nameplate capacity for every 5 kWh of battery storage. Projects must be submitted to Central Lincoln for technical review and approval before installation. As a part of this program, customers must agree to net metering customers terms. Rebate programs are based on the availability of funds and are subject to change at any time without notice.

Local Option - Rural Renewable Energy Development ZonesThe Oregon Business Development Commission11/07/2304/19/245416

Cities, counties, or several contiguous counties in Oregon can set up Rural Renewable Energy Development (RRED) Zones. The zone can only cover territory outside of the urban growth boundary of any large city or metropolitan area. Businesses must meet certain employment and/or investment requirements to be eligible.

Commercial renewable energy properties in these zones are eligible for a 3 to 5 year local property tax exemption. Eligible investments include wind, geothermal, solar, biomass, or other unconventional forms of electricity generation, or systems that produce, distribute or store biofuels. Each zone sets a local cap for the total value of property that can qualify for the abatement, up to $250 million in initial market value of each project. Interested businesses must apply for authorization before construction or installation begins.

Depending on the zone, businesses may also be eligible for other local property tax incentives. For a current list of designated zones, see the program website listed above. 

Designated Zones:

  • Clackamas County* Effective January 13, 2022
  • Coos County Effective December 2, 2019
  • Crook County Effective January 1, 2020
  • Deschutes County* Effective January 8, 2015
  • Douglas County Effective January 29, 2020
  • Gilliam County Effective January 20, 2021
  • Jackson County* Effective December 12, 2014
  • Lake County Effective July 1, 2019
  • Linn County* Effective July 1, 2018
  • Malheur County Effective January 1, 2015
  • Polk County* Effective July 1, 2018
  • Sherman County Effective February 28, 2019
  • Wasco County Effective May 6, 2020
  • City of Pilot Rock Effective February 18, 2020


*Excluding any area within urban growth boundary (UGB) of a metropolitan region or city with a population of 30,000 or more.

Fannie Mae Green Financing – Loan Program05/08/2004/19/245780

NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. 

The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender:  https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders

Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing.

Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250.

Please visit the Fannie Mae Green Financing website for more information and detailed program requirements.

Pacific Power - Blue Sky Community Project FundsPacific Power10/31/2304/19/245864

Note: Applications for 2024 funding will be made available on December 1, 2023. 

Pacific Power's Blue Sky program is a voluntary program for customers to support renewable energy. A portion of the voluntary payments through the program is used to fund new community-based renewable energy projects within Pacific Power's service territory.

Eligible renewable energy resources include wind, solar PV, geothermal, low-impact hydropower, pipeline or irrigation canal hydropower, wave or tidal energy, and low-emissions biomass. Projects must be grid connected, less than 10 MW, locally owned, and non-residential. 

Funding awards are made annually. Projects are evaluated based on project feasibility, costs, financing, additionality, community benefit, and recognition of the Blue Sky program. Total funding varies and the funding allocated to individual projects depends on the number of other applications and how well the project meets the program's criteria. Application timelines and materials are available on the program website. Projects that have received funding through other Pacific Power programs, such as the Oregon Solar Incentive Program, are not eligible to receive a Blue Sky grant. Applicants are encouraged to seek cost-share funding or in-kind donations from other sources to strengthen the application.

Applicants must enroll as a Blue Sky Business Partner upon receiving a funding agreement. Award recipients will need to submit quarterly progress reports during project construction and a final report upon project completion. 

Renewable energy certificates associated with the project will be awarded to Pacific Power in proportion to the funding provided by the Blue Sky program. 

PGE Renewable Development FundPortland General Electric Co10/31/2304/19/245872

2023 application window: May 31 - July 31.

Portland General Electric Company (PGE) offers its customers a voluntary renewable power option. A portion of the customer payments for renewable power are used to seed the Renewable Development Fund, which provides financial support for local renewable power projects.

The Renewable Development Fund supports new renewable energy projects less than 10 MW in capacity that are directly interconnected to PGE's grid or delivered to PGE through a Power Purchase Agreement. The Fund also supports certain research and development projects and educational components associated with renewable energy projects previously funded by the PGE Renewable Development Fund. 

Priority is given to projects:

  • hosted by a public or non-profit entity or in partnership with such an entity; 
  • sited within the PGE service territory and owned by a PGE customer; 
  • benefiting environmental justice communities; 
  • providing a substantial educational, environmental and economic benefit to the community and PGE customers;
  • or demonstrating efforts to obtain all other available funding sources, including incentives, grants, tax credits, in-kind donations or other creative efforts

 

Solar + Storage Rebate ProgramOregon Department of Energy03/20/2401/02/2922262

H.B. 2618 of 2019 established the Solar + Storage rebate program and instructed the Oregon Department of Energy to administer it. H.B. 3409 of 2023 extended the end data of the program to 2029. Incentives are available for residential solar + storage systems, with higher rebate amounts available for qualified low-income residents, and those ineligible for an incentive from their utility. Rebates are paid directly to the program-approved contractor, who installs the equipment, and will be passed on to the customer. 

Solar PV System Rebates:

  • Residents eligible for a utility incentive: $0.20 per watt DC, up to 40% of net cost or $5,000, whichever is less
  • Residents not eligible for a utility incentive: $0.50 per watt DC, up to 40% of net cost or $5,000, whichever is less
  • Low- or moderate-income residents: $1.80 per watt DC, up to 60% of net cost or $5,000, whichever is less
  • Low-income service provider: $0.75 per watt DC, up to 50% of net cost or $30,000, whichever is less

Energy Storage System Rebates:

  • Residents: $300 per kWh of installed energy storage capacity, up to 40% of net cost or $2,500, whichever is less
  • Low-income residents: $300 per kWh of installed energy storage capacity, up to 60% of net cost or $2,500, whichever is less
  • Low-income service providers: $300 per kWh of installed energy storage capacity, up to 60% of net cost or $15,000, whichever is less

Rebate requests are processed on a first-come, first-served basis for complete applications. Incomplete applications will not be approved nor funds reserved until missing items/information are provided. In a calendar year, at least 25% of available rebate dollars will be reserved for systems for low- or moderate-income residential customers and low-income service providers.​

Solar Within ReachEnergy Trust of Oregon05/31/2304/19/2422417

Energy Trust of Oregon provides increased incentives to income-qualified homeowners in Oregon when they install solar with a qualifying contractor and are a customer of Portland General Electric or Pacific Power. Qualifying income levels are updated annually (see table below). To participate, customers 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. 

Income Qualifications:

 Household Size   Gross Annual Income Maximum   
  1 Resident   $58,688
  2 Resident   $76,744
  3 Resident   $94,802
  4 Resident   $112,860
  5 Resident   $130,918
  6 Resident   $148,976
  7 Resident   $152,362
  8 Resident   $155,746

Incentive Rates

  • PGE:  $0.90/W, up to $5,400 per home
  • Pacific Power:  $1.00/W, up to $6,000 per home

*Incentive offers are subject to funding availability.

Energy Trust will provide referrals to contractors from their Trade Ally Network (self-installed systems will not qualify). The solar contractor selected advises the customer on installation options and best siting designs to obtain the maximum performance and satisfaction from the solar electric system. The contractor will provide a system quote that estimates the PV system annual performance, installation date, and the cost after Energy Trust incentive deductions. After Energy Trust approves the customer's PV system, the buy-down incentive will be paid to the solar contractor and deducted from the final cost.

Ashland Electric Utility - New Construction Residential Energy Efficiency Rebate ProgramCity of Ashland10/30/2304/19/2422430

The City of Ashland offers incentives to all news homes for energy and water efficiency projects. Program participants can select from any of the individually offered incentives for a partial rebate, or select all of the measures to obtain the maximum rebate of $2,500 and for the home to be recognized as an “Ashland Smartbuild” home. Rebates are offered for a variety of home efficiency projects and equipment, including:

  • ENERGY STAR Appliances
  • Heat Pumps/Heat Pump Water Heaters
  • Water Sense Home Certification
  • Earth Advantage Platinum Home
  • EV Charging Unit
  • Solar Water Heating/Solar PV
Making Solar Equitable ProgramEnergy Trust of Oregon11/15/2304/19/2422563

To make going solar easier and more affordable for eligible nonprofits, tribes, and affordable multifamily housing projects, Energy Trust of Oregon offers a Solar Development Assistance incentive of $1,800 — to help determine the potential of a solar or solar + battery storage projects — as well as increased solar installation incentives that are higher than regular incentives. Incentive amount is dependent on the system size and the electric utility service territory the system is located in.

To be eligible for the increased solar incentives, the property must fit one of the following categories:

  • Owned and operated by one of the nine federally recognized tribes of Oregon.
  • Affordable multifamily property where at least 50% of the property’s dwelling units associated with the project, are and shall remain dedicated for residents who are at or below 80% area median income for at least 10 years after project completion.
  • 501(c)(3) nonprofit organization that is a customer of Portland General Electric or Pacific Power, is registered with the Oregon Secretary of State and has a stated mission and track record of delivering programs directly benefiting communities and individuals including, but not limited to, Black, Indigenous, and other communities of color, communities experiencing lower incomes, federally recognized Indian tribes, rural communities, coastal communities, communities with limited infrastructure, and other communities and individuals traditionally underrepresented in public presses and programs to incent and advance solar energy installations.

Incentives for Portland General Electric customers are as follows:

Project cap size for all projects is 360 kW-DC

  • Solar for Tribes: $1.00/W up to $50,000
  • Solar for Affordable Housing: $0.75/W up to $45,000
  • Solar for Qualifying Nonprofits: $0.50/W up to $30,000

Incentives for Pacific Power customers are as follows

Project cap size for all projects is 360 kW-DC

  • Solar for Tribes: $1.00/W up to $50,000
  • Solar for Affordable Housing: $0.75/W up to $45,000
  • Solar for Qualifying Nonprofits: $0.50/W up to $30,000
Solar Planning ProgramEnergy Trust of Oregon11/17/2304/19/2422566

Energy Trust of Oregon offers cash incentives and technical support that makes it easy and affordable to add solar to building designs. The benefits of solar power—such as lower energy bills, reduced carbon emissions and protection from rising electricity costs—are all great reasons to reach for the sun. Energy Trust offers cash incentives and technical support that make going solar easy and affordable. Energy Trust can also help design buildings to be solar ready and reduce the cost of a future solar installation.