Is Solar Worth It in Oregon in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Oregon homeowners — without the federal ITC.
Cost Per Watt
$3.10
installed
Electricity Rate
$0.166
per kWh
Payback (No ITC)
16.6 yr
current reality
Payback (With 30% ITC)
11.6 yr
hypothetical
25-Year ROI
50%
return on investment
Incentive Breakdown — Oregon
Available incentives for a typical 7kW residential solar system in Oregon
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$10,850Oregon offers a state tax credit of up to 50% of net system cost, capped at $6,000 (Oregon Residential Energy Tax Credit).
SREC Market
Not AvailableOregon does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Low-Income Program
AvailableOregon offers programs to help low-income households access solar energy.
Key Incentives: State tax credit worth $10,850; Property tax exemption for solar; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Oregon
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC
- $0
- Net Cost
- $21,700
- Annual Savings
- $1,306/yr
- Payback Period
- 16.6 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.10/W
- Gross Cost
- $21,700
- Federal ITC (30%)
- -$6,510
- Net Cost
- $15,190
- Annual Savings
- $1,306/yr
- Payback Period
- 11.6 years
Impact: Without the federal ITC, Oregon homeowners face a 5.0-year longer payback period — paying $6,510 more out of pocket.
Net Metering Policy — Oregon
How Oregon compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Oregon mandates net metering at full retail rate for systems up to 25 kW under PUC rules.
Cost Per Watt Benchmark — Oregon
Oregon Average
$3.10/W
National Average
$3.05/W
Typical 7kW System
$21,700
Oregon's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Oregon breaks even in 16.6 years. With the former 30% ITC, payback would drop to 11.6 years.
Without Federal ITC
16.6
years to break even
With Former 30% ITC
11.6
years to break even
Production Details
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