Oregon Solar Panels: Cost and Savings

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The northwest is known for rain and overcast weather, but Oregon has embraced solar energy. You might be shocked to hear that Oregon ranks in the top half of states for solar energy production. Homeowners in the state save money and reduce their carbon footprint by investing in home solar panel systems.

Are you wondering whether solar is worth it for you in Oregon? We’re answering that question and other common concerns about the costs and benefits of solar panels. Find out how to get started with solar power at your home.

Residential solar panel systems cost an average of $3 to $5 per watt. The average 5-kW system has a price tag ranging from $15,000 to $25,000. Keep in mind that price is before any tax credits and other incentives. 

The cost of solar panels in Oregon is determined by your system’s size, configuration, components, and other features of your solar panel system.

Solar panel setup

The components of your residential solar system are an essential factor in determining your costs. Here are a few pieces of equipment you’re likely to find in a solar panel system:

• Solar panels: The solar panels are the most critical part of your home solar panel system. They’re the part that captures the sunlight that will eventually power your home. Panels can be monocrystalline, polycrystalline, or thin-film.
• Solar cell: The solar cell takes the sunlight your solar panels capture and converts it into electricity so it can power your home.
• Inverter: A solar panel inverter takes the electricity from your solar cell and converts it from direct current (DC) power to alternating current (AC) power, which is what your home appliances require.
• Battery: Once you create usable electricity, you can store it in a battery to power your home when the sun isn’t shining, or sell it back to the electricity grid.

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You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Solar panels are a substantial investment, but there are financial incentives in place to reduce the cost burden for those who purchase them. Here are a few of the incentives in place for Oregon residents:

• Federal tax credit: The federal government has a 26% tax credit for taxpayers who invest in solar power. The tax credit only applies if you purchase your system — you can’t use it if you lease your panels.
• State tax credit: Oregon previously offered a state tax credit to homeowners who invested in solar panels for their homes. While this tax credit has expired, it is possible the state could bring it back in the future.
• Local rebate program: Some utility companies and local governments in Oregon offer rebates to residents who produce their own electricity with solar power.
• Net metering: Oregon’s net metering policy allows you to receive a credit on your electricity bill for any excess electricity you create, which will lower your electricity  bills.

Solar energy in Oregon may help lower your electric bills

Tax credits and rebates aren’t the only way to save money with your solar panels in Oregon. You will also save lots of money on your electricity costs.

Oregon residents pay an average of about $104 per month for electricity, which comes out to $1,248 per year. When you pair that with the 26% federal tax credit, you could break even on your solar panel purchase within nine years. Take a look at this example scenario with a starting solar investment of $15,000:

One of the benefits of installing solar panels on your home is that you can achieve a level of energy independence, which means you aren’t completely reliant on the traditional electricity grid to power your home. 

A major benefit is that you aren’t subject to energy price swings when you produce your solar energy. During certain times of the year, energy demand — and therefore, energy costs — tend to spike. But with solar panels, you can avoid those price swings.

If you invest in a solar battery, you will have even more energy independence because power outages may not affect you as much. During extreme weather or downed power lines, it’s not unusual for homes to lose power. But with the help of a solar battery, you can continue to power your home with your solar power for a period of time.

If you are considering getting solar panels at your home, you know it’s a big investment. Visit our library of educational resources to learn more about solar energy and other green energy tips. Call the phone number on your screen to speak to an energy expert.

Here are a few things to consider before you buy your solar panels:

• Solar panels are most cost-effective when you plan to stay in your home for a longer period. It can take five to ten years, on average, to get a total return on your investment (ROI) for this purchase. If you’re moving within a few years, it may not be worth it.
• You’ll get the best results from your solar panels if you have a roof that’s in good condition, is south-facing, and gets lots of sunlight. These factors will ensure you produce the most solar energy and save the most money.
• Some neighborhoods have homeowners associations with restrictions around solar panel use or may require that you get approval before having them installed.

Oregon was one of the first states to implement solar-friendly policies. The state started investing in solar energy back in the mid-1970s and continued doing so over the next several decades.

Oregon’s investments in solar energy have paid off. Today, the state is 19th in the nation for solar energy production. Almost three percent of the state’s electricity comes from solar energy, which is enough to power nearly 150,000 homes. Over the past several years, Oregon’s investment in solar energy has spanned across residential, commercial, community, and utility solar projects.

Solar power has positively affected Oregon’s economy. Today there are more than 140 solar companies in the state, and the industry creates more than 3,500 jobs for the people of Oregon. The Solar Energy Industries Association (SEIA) predicts that Oregon’s solar growth will rank in the top half of the state over the next five years.