Tax Credits

The Residential Energy Tax Credits (RETC) is provided by the state of Oregon.

The Residential Energy Tax Credit (RETC) is $3.00 per watt AC which equals $2.10 per Watt DC. The $3.00 per watt AC is derated by 30% due to system and site inefficiencies, in order to calculate a nominal DC output. Example: 2500W AC x $3.00 x 0.7 (70%) = $5,250.00 tax credit. The RETC are based on the name plate rating of the panels.

The maximum RETC is $6,000 per site and cannot exceed 50% of the project cost after the utility incentive. The RETC can only be claimed at a maximum of $1,500 per year, so the full amount can take up to 4 years to recover. In order to qualify for the RETC, a system needs to produce 75% or greater of TSRF (Total Solar Resource Fraction). Tax credits for solar PV and solar water heating can be claimed in the same year. Homeowner installs can qualify, but need to be verified by a tax credit-certified technician.

Tax credits can also be sold at a discount rate to other individuals who have a tax liability. This pass through option provides upfront cash for system owners who do not have tax liability.

Federal tax credits are 30% of system costs of the total system cost after incentives (e.g. Energy Trust) which are paid directly to the contractor. These tax credits can be taken in the year the system is operational or can be carried forward if the credits exceed tax liability. There is no pass through option for federal tax credits.

>>Click here to return