About This Guide
Happy New Year!
It is now 2018. Please see our new, 2018 information. A lot has changed here in Oregon!
It is now 2018. Please see our new, 2018 information. A lot has changed here in Oregon!
------------------ FROM 2017 -------------------
Like many people here in Oregon, you may be thinking about adding solar panels to your home. You may also realize that solar energy incentives here in Oregon are changing forever.
In this newly updated guide, we give you a last look at what solar energy can do for you. If you are able to start the process before January 1st, 2018.
...Read on!
Last Updated: December, 2017
First Off: Is Solar Energy Cost Effective?
The simple answer to this question is: yes.
Let's take a look at some typical costs.
Smaller systems (e.g. those below 5kW) generally cost in the neighborhood of $3500 - $4,000 per kW of capacity. This amount depends on the manufacturer you choose and what the installation process involves.
However, this cost is a taken before incentives, which we will cover momentarily.
In addition, most homeowners in Oregon spend about $100/month on their utility bill. After installing a 4kW system – which is fairly standard in Oregon – they would receive roughly 40% to 50% of their electricity from solar.
Typically, this means an annual discount of 40-50% off of your power bills!
When these factors are combined, most homeowners with a significant solar window will see an excellent ROI. Of course, each situation is unique, so please contact us to see exact financial projections and costs.
Let's take a look at some typical costs.
Smaller systems (e.g. those below 5kW) generally cost in the neighborhood of $3500 - $4,000 per kW of capacity. This amount depends on the manufacturer you choose and what the installation process involves.
However, this cost is a taken before incentives, which we will cover momentarily.
In addition, most homeowners in Oregon spend about $100/month on their utility bill. After installing a 4kW system – which is fairly standard in Oregon – they would receive roughly 40% to 50% of their electricity from solar.
Typically, this means an annual discount of 40-50% off of your power bills!
When these factors are combined, most homeowners with a significant solar window will see an excellent ROI. Of course, each situation is unique, so please contact us to see exact financial projections and costs.
2017 Solar Energy Incentives: In-Depth and Updated
There are a number of solar energy incentives available to help you pay for an investment in going solar. This section outlines these incentives and provides some insight into understanding how they work.
The 2017 Oregon Solar Tax Credit
The Oregon Solar Tax Credit (also called the RETC) is worth $6000. This credit will be discontinued on December 31st of this year.
OREGON SOLAR TAX CREDIT RATES
(Renewable Energy Tax Credit) |
|
How to Qualify for the Oregon Solar Tax Credit in 2017
For the moment, just about any 3.5kW+ system will qualify, but your roof must capture 75% of the sun's energy.
Knowing whether your roof will qualify, often requires a free site evaluation. This is because the angle of your roof, the shading it receives and the direction it faces are all important factors.
If you qualify, you may take the $6,000 Oregon Solar Tax Credit at $1,500/year.
Knowing whether your roof will qualify, often requires a free site evaluation. This is because the angle of your roof, the shading it receives and the direction it faces are all important factors.
If you qualify, you may take the $6,000 Oregon Solar Tax Credit at $1,500/year.
How to Make the Oregon Solar Tax Credit DEADLINE
Once you have qualified, your tax credit will remain valid for 4 years (in spite of the program sunset) provided that:
Clearly, the reliability of your installer is central to this process.
Mainstream financial instruments also are available to help you leverage upfront costs (including 12 months, same-as-cash loans).
Loans and financing are beyond the scope of this article, but please do contact us if you would like details!
- You purchased your system by December 31, 2017
- The initial application with the Energy Trust of Oregon was input correctly on or before December 31, 2017 (alternately, a Tax Credit Certified Technician may be hired to input this data into the "PowerClerk" system)
- Your solar panels are fully functional, permitted and delivering power back to your utility by April 1, 2018; and
- Your installer has submitted the final, flawless application to ODOE no later than June 1, 2018 (all revisions must be complete).
Clearly, the reliability of your installer is central to this process.
Mainstream financial instruments also are available to help you leverage upfront costs (including 12 months, same-as-cash loans).
Loans and financing are beyond the scope of this article, but please do contact us if you would like details!
The Federal Solar Tax Credit
The federal government offers a solar tax credit also. This credit will cover 30% of the total cost of a solar electric system (minus utility incentives, which we will discuss shortly).
FEDERAL SOLAR TAX CREDIT RATES:
|
-- 30% Tax Credit: Present |
The End of the Federal Solar Tax Credit
As you may see from the chart above, the Federal Solar Tax Credit Is also ending.
Unlike the Oregon Solar Tax Credit, however, the Federal Tax Credit is being phased out over time. If you install a grid-tied, solar electric system on or before December 31st, 2019 (and it meets all qualifications), then you may take the full 30%.
Unlike the Oregon Solar Tax Credit, however, the Federal Tax Credit is being phased out over time. If you install a grid-tied, solar electric system on or before December 31st, 2019 (and it meets all qualifications), then you may take the full 30%.
How Does the Federal Tax Credit Work?
You can take the Federal Solar Tax Credit for the same tax year your system becomes operational.
You can also move part of this credit forward to the following year (if your credits exceed your tax liability).
As of this writing, solar credits can carry forward for 20 years, if you are a commercial entity. We believe residential customers will be able to do the same. However the IRS has not fully clarified its stance.
The IRS does seem certain that you may pass the tax credit forward until the program ends, however.
You can also move part of this credit forward to the following year (if your credits exceed your tax liability).
As of this writing, solar credits can carry forward for 20 years, if you are a commercial entity. We believe residential customers will be able to do the same. However the IRS has not fully clarified its stance.
The IRS does seem certain that you may pass the tax credit forward until the program ends, however.
Portland Metro Area: The Energy Trust of Oregon Incentives
PGE and Pacific Power Customers ONLY
In addition to tax credits, there are cash incentives offered by utility companies. These cash incentives are funded by a small charge on every rate-payer’s monthly bills.
CURRENT ENERGY TRUST INCENTIVE RATES:
|
Portland General Electric: |
How Does the Energy Trust of Oregon Incentive Work?
The Energy Trust Incentive is only available to PGE and Pacific Power Customers.
The administrator for these cash incentives is called the Energy Trust of Oregon (ETO).
If you are a customer of Portland General Electric or Pacific Power and you install solar, you may be eligible. These cash benefits paid out much like a coupon. They are usually paid directly to a solar energy installer and decreases the overall cost of your solar system.
For a solar installation to qualify, it must meet the following criteria:
The administrator for these cash incentives is called the Energy Trust of Oregon (ETO).
If you are a customer of Portland General Electric or Pacific Power and you install solar, you may be eligible. These cash benefits paid out much like a coupon. They are usually paid directly to a solar energy installer and decreases the overall cost of your solar system.
For a solar installation to qualify, it must meet the following criteria:
- TSRF of 75% or higher
- 10 years of roof life
- Installed by a certified ETO Trade Ally (like Synchro Solar); and
- It must be tied to the grid in Pacific Power or Portland General Electric territory.
The ETO Step-Down Proces
The Energy Trust of Oregon has limited funds with which to work. As a result, the ETO reduces the amount of this credit over time based on total customer participation.
At the beginning of the following year, the Energy Trust begins this process anew. However, each year the amount of the incentive may be adjusted (and it often decreases).
Those of us in the industry call this process a “step down” system.
The Energy Trust does make its remaining allocation data publicly available on a weekly basis, but finding it can be difficult. Your best bet is to speak with an Energy Trust certified installer, like Synchro Solar. Installers certified as Trade Allies are given information on a regular basis that can be difficult for the public to locate.
The key here is that the “step-downs” can occur with very little warning.
Remember, this credit will only be paid if you use a qualified, Energy Trust of Oregon certified contractor, like Synchro. The ETO calls these contractors “Energy Trust Trade Allies.”
At the beginning of the following year, the Energy Trust begins this process anew. However, each year the amount of the incentive may be adjusted (and it often decreases).
Those of us in the industry call this process a “step down” system.
The Energy Trust does make its remaining allocation data publicly available on a weekly basis, but finding it can be difficult. Your best bet is to speak with an Energy Trust certified installer, like Synchro Solar. Installers certified as Trade Allies are given information on a regular basis that can be difficult for the public to locate.
The key here is that the “step-downs” can occur with very little warning.
Remember, this credit will only be paid if you use a qualified, Energy Trust of Oregon certified contractor, like Synchro. The ETO calls these contractors “Energy Trust Trade Allies.”
What Is the Cost of Solar Maintenance?
High quality solar panels require almost zero maintenance. They are reliable and feature long warranty periods.
Most high-quality solar panels are warrantied for 25-30 years, in fact.
Solar panel warranties can also guarantee a minimum amount of power for the term of the warranty. For example, a manufacturer may provide a warranty that guarantees your solar panels stay above 85% effective.
Analyze the equipment offered by any contractor carefully before you install.
Inexpensive panels may be appealing to some, however reliability and production could suffer in the long term, especially after 10 years or more. Consider your alternatives carefully and know where your panels are made. Warranty enforcement in some international jurisdictions could, of course, be challenging.
In addition, even some big brand installers may not always manage customer needs effectively. So we recommend a strong, trust-centered relationship with your contractor.
Most high-quality solar panels are warrantied for 25-30 years, in fact.
Solar panel warranties can also guarantee a minimum amount of power for the term of the warranty. For example, a manufacturer may provide a warranty that guarantees your solar panels stay above 85% effective.
Analyze the equipment offered by any contractor carefully before you install.
Inexpensive panels may be appealing to some, however reliability and production could suffer in the long term, especially after 10 years or more. Consider your alternatives carefully and know where your panels are made. Warranty enforcement in some international jurisdictions could, of course, be challenging.
In addition, even some big brand installers may not always manage customer needs effectively. So we recommend a strong, trust-centered relationship with your contractor.
Real Numbers and Real Costs
Are you ready to consider solar in more detail?
Contact us for a completely free, no hassle consultation!
During a consultation, we can provide you with exact data, figures and projections specific to your home. All at no obligation.
Here at Synchro, we like to start with a simple, old-fashioned phone call so that we can get to know your needs and help you decide what might work best for your location.
Contact us for a completely free, no hassle consultation!
During a consultation, we can provide you with exact data, figures and projections specific to your home. All at no obligation.
Here at Synchro, we like to start with a simple, old-fashioned phone call so that we can get to know your needs and help you decide what might work best for your location.
503-208-4786
What Are the Steps to Going Solar?
Great question! Take a look at our Steps to Going Solar article to learn more about moving forward.
Please do not hesitate. We do not believe in high pressure sales, so you can trust our thoughts on your situation.
Explore with us today!
Please do not hesitate. We do not believe in high pressure sales, so you can trust our thoughts on your situation.
Explore with us today!