Tax Credits

Tax Credits reduce income tax liability on a dollar basis and are claimed on your state and federal income tax returns. The tax credits for solar are “non-refundable,” meaning they can reduce your tax liability to zero, but not below.

Oregon Residential Energy Tax Credit for solar water heating (Oregon Department of Energy): $0.60 per rated kWh savings for the first year, up to $1,500

Federal income tax credit for solar water heating: 30 percent of net installed cost (net installed cost = total installed cost – Energy Trust cash incentive).