Home Solar in Oregon: 2026 Costs, Incentives & Savings
Solar in Oregon
Oregon electricity prices have climbed 31% from 2020 to 2024 — and for many homeowners, that’s made the idea of generating their own power worth a serious look. If you’re exploring home solar panels for the first time, you’re asking the right questions.
This guide covers everything Oregon homeowners need to know about solar installation — from how the process works to what it costs. We’ll walk you through it clearly, step by step.
OREGON by the Numbers
21st Most residential solar in the United States
45k Households have installed solar panels
4.0 Average daily peak sun hours
~$45k Oregon average savings over 25 years
Oregon Solar Panel Cost
Curious what solar actually costs in Oregon? This calculator uses real installation data from Palmetto customers across the state — from Portland and Eugene to Bend and Medford. See your estimated monthly lease payment through our LightReach program (no upfront cost required), or explore a cash purchase option — side by side, so you can compare both paths to solar.
Lease
Cash Purchase
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Oregon.
Recommended System
7.48 kW Typical for your home size in OR
Your Monthly Payment
Estimated monthly cost with LightReach
$95/mo As low as $95/mo
Why Lease Solar?
Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown
Your estimated investment
System Cost
$23,057
Cost Per Watt
$3.08/W
Final Cost
$23,057
Savings
Your total financial benefit
Monthly Savings
Average utility bill reduction
$102
Payback Period
Break-even point
15.1 years
25-Year Savings
$44,913
Key Takeaways
- Oregon electricity prices have risen 28% since 2021, making solar a smart way to reduce your monthly energy costs.
- Palmetto’s LightReach lease lets you go solar for as low as $95/month — no upfront cost, and Palmetto handles all maintenance.
- Oregon offers strong solar incentives, including state rebates up to $5,000, utility cash rebates, and a property tax exemption on your system’s added home value.
Oregon Electricity Prices
Oregon electricity rates have jumped nearly 28% since 2021 — and they’re still climbing. Here’s what that means for your energy bill.
Oregon homeowners paid 11.4¢ per kWh in 2021. By 2024, that rose to 14.6¢ — a 28% increase in just three years. Nationally, rates followed the same trend, rising from 13.7¢ to 16.5¢ over the same period.
Solar gives homeowners a way to generate their own power and reduce dependence on the grid. When utility rates rise, the value of producing your own electricity rises with them — making solar increasingly worth considering.
Price of Energy: Oregon vs National Average
0¢
10¢
20¢
30¢
13.7¢
11.4¢
15.0¢
11.4¢
16.0¢
12.7¢
16.5¢
14.6¢
2021
2022
2023
2024
Oregon Area Utility Providers
Oregon’s two main electric utilities — PacifiCorp and Portland General Electric — serve most of the state. Based on 2023 data, their rates sit below the national average of 16.0¢ per kWh, but they differ meaningfully from each other.
PacifiCorp customers paid around 12.0¢ per kWh in 2023 — right in line with Oregon’s state average of 12.70¢ per kWh. Portland General Electric came in higher at 15.2¢ per kWh, driven by infrastructure investments and grid modernization costs.
Oregon Utilities Electricity Rates
PacifiCorp
12.00¢
-25%
Portland General Electric
15.20¢
-5%
OR Average
12.70¢
-21%
US Average
16.0¢
—
Oregon Solar Incentives
Oregon homeowners have access to a strong set of solar incentives in Oregon — including state rebates, utility programs, and automatic tax exemptions — that can meaningfully reduce the cost of going solar.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Oregon Solar + Storage Rebate Program (ODOE) | Rebate | Oregon homeowners can receive up to $5,000 for a solar system and up to $2,500 for a paired battery storage system, with higher rebates available for low- and moderate-income households. | Learn More |
| Energy Trust of Oregon – Standard Solar Incentive | Rebate | Portland General Electric and Pacific Power customers can receive a flat $2,500 cash incentive toward the purchase of a new solar system installed by an Energy Trust Trade Ally contractor. | |
| Energy Trust of Oregon – Battery Storage Incentive | Rebate | PGE and Pacific Power customers can receive $400 per kWh of battery storage installed, up to a maximum of $5,000, through the Energy Trust of Oregon. | |
| Energy Trust of Oregon – Solar Within Reach (Income-Qualified Solar & Storage) | Rebate | Income-qualified PGE and Pacific Power customers can receive up to $0.90/W for solar (max $5,500) and up to $520/kWh for battery storage (max $6,500), with even higher incentives available under expanded program tiers. | |
| PGE Smart Battery Pilot Program | Rebate | Portland General Electric residential customers can receive an upfront rebate of $1,000–$3,000 for installing a compatible battery system, plus earn $1.70 per kWh during grid peak events. | Learn More |
| Portland Clean Energy Community Benefits Fund (PCEF) – Solar & Storage Grants | Rebate | Portland residents, particularly low-income households and communities of color, may qualify for PCEF grants that can cover up to 100% of solar installation and battery storage costs. | Learn More |
| Eugene Water & Electric Board (EWEB) – Solar Incentive | Rebate | EWEB residential customers can receive $0.40 per AC watt of solar installed, up to $2,500, on a first-come, first-served basis from a 2026 budget of $125,000. | Learn More |
| Salem Electric – Solar Rebate | Rebate | Salem Electric customers can receive $300 per kW of solar installed, up to a maximum of $1,500, for net-metered systems of 25 kW or less. | Learn More |
| Central Lincoln Electric Utility – Solar Storage Rebate | Rebate | Central Lincoln Electric Utility customers can earn up to $2,000 for installing a solar-plus-storage system by completing a pre-installation technical review and signing a net metering agreement. | |
| Oregon Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | Oregon law exempts the added home value from a solar installation from property tax assessment, meaning your property taxes will not increase due to your solar system. | Learn More |
| Oregon Sales Tax Exemption for Solar Equipment | Sales Tax Exemption | Oregon has no general state sales tax, so all solar panels, inverters, batteries, and installation labor are automatically exempt — no application required. | Learn More |
| Oregon Net Metering | Net Metering | Oregon requires major utilities to offer net metering for residential solar systems up to 25 kW, crediting excess generation against your electricity bill with an annual true-up each March. | Learn More |
Oregon Solar + Storage Rebate Program (ODOE)
The Oregon Department of Energy (ODOE) Solar + Storage Rebate Program offers residential homeowners a rebate of up to $5,000 for a solar electric system and up to $2,500 for a paired energy storage system. The program is set to temporarily reopen on June 15, 2026, with $1.1 million in available funding — but demand is expected to be extremely high, and funds may be exhausted within the first day.
Low- and moderate-income (LMI) households are eligible for significantly enhanced rebates worth up to 60% of the total system cost, which can reach up to $7,500 for solar. LMI eligibility can be established through qualifying Oregon Housing and Community Services programs, Oregon DHS/OHA programs, or by providing an Oregon Department of Revenue tax transcript proving household income.
To qualify, your system must be installed on real property in Oregon by an ODOE-approved contractor. The contractor must submit a reservation application before construction begins. For paired solar and storage systems, both must be purchased together from the same approved contractor. Rebates are issued to the contractor and passed on to you as an upfront discount.
Frequently Asked Questions
Does Oregon have net metering? Yes, Oregon has Net Energy Metering (NEM). Major utilities — including Portland General Electric (PGE) and Pacific Power — are required to offer net metering for residential solar systems up to 25 kW. Excess electricity your panels send to the grid earns bill credits, which offset power you draw at night or on cloudy days. Credits are reconciled at an annual true-up each March.
Do solar panels increase your home value in Oregon? Yes — but only if you own your solar system outright. Research from Zillow found that homes with solar panels sell for approximately 4.1% more than comparable homes without them.
How much does it cost to go solar in Oregon? For Oregon homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with payments starting as low as $95/month and no upfront cost. Palmetto owns and maintains the system, includes a 90% Production Guarantee, and provides a comprehensive protection program.
Is solar worth it financially? For most Oregon homeowners, solar can be worth it financially — and with leasing, you don’t have to wait years to see the benefit.
Does solar make sense in Oregon? Yes, solar makes sense for most Oregon homeowners. Electricity rates have climbed 28% since 2021, and Oregon offers strong incentives — including state rebates up to $5,000, utility cash rebates, a property tax exemption, and no sales tax on equipment.
What’s the best solar company in Oregon? Palmetto Solar is a top choice for Oregon homeowners. We’ve completed 717 installations across Oregon since 2020, bringing national expertise with a local focus to cities like Portland, Eugene, Bend, and Salem.