Take Advantage of Rebates, Tax Incentives and Financing
With utility rates continuing to rise, now is the time to invest in solar. State rebates, federal and state tax incentives, and financing can reduce the cost by as much as 80%. Make your dream of producing your own green power a reality. Starting July 1, 2010 Oregon utilities will start to pay customers for the energy that they produce. Find out more about the Oregon Feed-in Tariff Pilot Program.
Oregon Feed-In Tariff
Starting July 1, 2010 Pacific Power and PGE will be offering a special incentive for customers who install solar panels on their home. The utility will enter into a 15 year agreement with the customer to pay them monthly for the energy that they produce. The rate is currently set at 0.52/kwh. Customers who participate in this program are not eligible for the Energy Trust rebate and the state tax credit.
Rebate
The state of Oregon offers a rebate through the Energy Trust of Oregon. For PGE customers the rebate is $1.75/W up to a maximum of $20,000. For Pacific Power customers the rebate is $1.50/W up to $20,000.
State Tax Credit
The state offers a tax credit of $3/W up to a maximum of $6000. This credit is spread out evenly over four years.
Federal Tax Credit
The federal government offers a tax credit at 30% of the after rebate system cost. There is no cap for this credit and it can be applied directly to your federal taxes. If you can’t use the entire credit in one year you can spread it out for up to twenty years.
Total Costs Example
Here is an example of how the costs break down for a typical 2.94kW system installed for a PGE customer. This system can produce on average about 3000kwh/year.
Cost: $17,000
Rebate: $5145
State Tax Credit: $6000
Federal Tax Credit: $3557
Total Cost after Incentives: $2,298!
Adding solar to your home does not increase your property taxes but it can add value to your home.
Financing options are available for residential solar installations through Umpqua Bank’s Green Street Lending program. They offer financing rates as low as 4% for solar energy projects.
