Solar Water Heating - Residential Incentives
Incentives for homeowners investing in solar domestic water heating systems
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 credit:
Residential income tax credit
- 30% of system cost, up to $2,000
- System cost is reduced by utility rebates
- IRS form 5695 - Residential Energy Credits
- Homeowner 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.
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:
- $0.60/kWh, up to $1,500
- System must be installed by Tax Credit Certified Technician
- Homeowner applies for credit after installation is complete
3) Incentives for utility customers:
If you do not see your utility listed go to the database of State Incentives for Renewables and Efficiency >>www.dsireusa.org.
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, up to $1,500
- Based on rated energy savings
- Must use electric water heater
- Reduces the price you pay to a contractor
- Incentive is paid to contractor after passing Energy Trust inspection
Portland General Electric (PGE), offered by Energy Trust of Oregon
NW Natural, offered by Energy Trust of Oregon
Cascade Natural Gas, offered by Energy Trust of Oregon
- Up to $1,000; or a zero-interest loan
- Must use electric water heater
- Paid as rebate post-installation
- Free solar site analysis available
Central Electric Cooperative (CEC)
- $500
- Must use electric water heater
- Paid as rebate post-installation
- Up to $600 and zero-interest loan
- Must use electric water heater
- Paid as rebate post-installation
Eugene Water & Electric Board (EWEB)
- Up to $600 and zero-interest loan
- Must use electric water heater
- Paid as rebate post-installation
If you did not see your utility listed go to the database of State Incentives for Renewables and Efficiency >>www.dsireusa.org.