Incentive amounts are subject to change.  Each incentive program may include minimum eligibility requirements.  Please use the links provided to visit to find current incentive levels offered by each organization, and to learn how to be eligible for their incentives.

1) Federal tax benefits:

Commercial investment tax credit

• 30% of total system cost, no cap
• IRS form 3468 - Investment Credit
• Business claims credit on tax return, does not need to "apply" for credit
• Currently due to expire on December 31, 2008 after which it drops to 10%.  Go to Tax Incentives Assistance Project for the latest information.

Accelerated depreciation

• 5 year depreciation schedule for investment
• Modified Accelerated Cost Recovery System
• Cost basis is reduced by half the federal investment tax credit

For more information, request a free copy of the Solar Energy Industries Association's Guide to Federal Tax Incentives for Solar Energy.

2) Oregon state tax credit:

Business Energy Tax Credit

• 50% of eligible cost
• Claimed over 5 years (10%, 10%, 10%, 10%, 10%), unless project cost is under $20,000
• Eligible cost may be capped by Maximum Eligible Cost calculation
• Must apply before purchasing equipment

3) Incentives for utility customers:

In most cases, systems must be installed by a contractor, and must be pre-approved for incentives before installation begins.  Your contractor should be familiar with these programs and should help you with the application process.

Pacific Power, offered by Energy Trust of Oregon

• $0.40/kWh
• Based on calculated first year energy savings (using F-Chart, RETScreen or TRNSYS)
• Must use electric water heat
• Incentive is paid to business after passing Energy Trust inspection

Portland General Electric (PGE), offered by Energy Trust of Oregon

• $0.40/kWh
• Based on calculated first year energy savings (using F-Chart, RETScreen or TRNSYS)
• Must use electric water heat
• Incentive is paid to business after passing Energy Trust inspection

NW Natural, offered by Energy Trust of Oregon

Cascade Natural Gas, offered by Energy Trust of Oregon

Learn about commercial solar water heating.