Updated October 2026
Oregon businesses, farms, industrial facilities, nonprofits and government organizations may qualify for valuable solar and battery incentives that can significantly reduce installation costs, reduce operating costs, and free up much needed capital. Federal tax credits, utility rebates, property-tax exemptions, grants and financing programs can make solar and battery storage more affordable. In some cases, multiple incentives can be combined, creating significant savings on a commercial solar or battery investment.
But not every solar incentive is available to every organization. Eligibility depends on your industry, tax status, electric utility, location and project specifications. Some programs are open now, while others operate through limited or recurring funding rounds.
This guide explains which Oregon solar and battery incentives may be available to your organization, what they offer and which programs to watch for in 2027.
Jump to the incentives most relevant to you:
- Commercial & Industrial Incentives
- Agricultural & Rural Incentives
- Nonprofit & Government Incentives
- Programs to Watch for in 2027
Find Solar & Battery Incentives for Your Organization
| Your Organization | Incentives to Explore |
|---|---|
| Commercial & Industrial | Federal tax credits, accelerated depreciation, Energy Trust rebates, utility battery incentives and property-tax benefits |
| Agricultural & Rural | Federal incentives, USDA REAP financing, Energy Trust rebates, rural-energy assistance and property-tax programs |
| Nonprofits & Government | Federal Direct Pay, Energy Trust nonprofit incentives, EWEB rebates, Pacific Power Blue Sky and community-energy grants |
The programs described below are subject to individual eligibility requirements and funding availability. Dollar amounts reflect published 2026 program information and should be verified before applying.
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Federal Solar & Battery Incentives Available to Multiple Industries
Before exploring industry-specific programs, it’s worth understanding two major federal incentives available to different types of Oregon organizations.
Section 48E: Federal Clean Electricity Investment Credit
Potential benefit: Generally up to 30% or more of eligible project costs.
The federal Clean Electricity Investment Credit (Section 48E) is one of the most valuable incentives for qualifying commercial solar and battery projects.
The base credit is 6%, increasing to 30% for projects meeting applicable labor requirements or qualifying under other provisions, including certain smaller projects.
Additional federal bonuses can increase the credit further:
- Domestic Content Bonus: Up to 10 additional percentage points for qualifying American-made components.
- Energy Community Bonus: Up to 10 additional percentage points for qualifying projects in designated energy communities.
Who may qualify? Businesses, manufacturers, agricultural operations and other eligible taxable entities. Qualifying nonprofits and government organizations may also access the credit through Elective Pay, explained below (click here to skip to that section).
Important deadline: Solar projects beginning construction after July 4, 2026 generally must be placed in service by December 31, 2027 to receive this credit. Qualifying energy-storage technology is not subject to the same accelerated solar deadline.
Learn more about the federal solar deadline and construction requirements — IRS
Section 45Y: Federal Clean Electricity Production Credit
Potential benefit: A federal tax credit based on qualifying electricity production.
The Clean Electricity Production Credit (Section 45Y) provides an alternative to Section 48E.
Instead of calculating the credit based on installation costs, Section 45Y rewards qualifying electricity generated and sold over a defined period. The IRS lists an initial base amount of 0.3 cents per kilowatt-hour, with a higher rate beginning at 1.5 cents per kilowatt-hour for qualifying facilities and additional potential bonuses.
Credit amounts are inflation-adjusted, and qualifying facilities may receive additional increases for domestic content or energy-community eligibility.
Who may qualify? Owners of eligible electricity-generating facilities, including certain commercial, industrial, agricultural, nonprofit and public-sector projects.
The production credit is typically more relevant to larger generating facilities. Projects generally evaluate either Section 48E or Section 45Y rather than claiming both for the same facility.
Commercial & Industrial Solar Incentives
Oregon businesses, warehouses, manufacturers, commercial property owners and industrial facilities may qualify for multiple financial incentives that reduce the upfront cost of solar and battery storage while improving long-term project economics.
In addition to federal Sections 48E and 45Y, several tax benefits and utility programs deserve consideration.
Accelerated Depreciation & 100% Bonus Depreciation
Potential benefit: Accelerated federal tax deductions on qualifying equipment.
Eligible businesses may be able to recover the cost of qualifying solar and energy-storage investments through accelerated depreciation, or Modified Accelerated Cost Recovery System (MACRS). Certain clean-energy property qualifies for five-year MACRS treatment, while eligible property acquired after January 19, 2025 may qualify for 100% first-year bonus depreciation.
This can create additional tax savings beyond the federal investment credit.
Who qualifies? Taxable businesses that own qualifying depreciable solar or storage property. The actual benefit depends on tax basis, ownership and other tax requirements.
Learn more about clean-energy depreciation — IRS. You can also read guidance on 100% Bonus Depreciation from the IRS.
Energy Trust of Oregon — Commercial Solar & Battery Incentives
Potential benefit: Utility-funded incentives for qualifying solar and battery installations.
Eligible businesses served by Portland General Electric (PGE) or Pacific Power may receive incentives through Energy Trust of Oregon (ETO).
As of October 2026:
| Incentive | Published Amount |
|---|---|
| Business Solar — PGE | $0.10/W, up to $9,000 |
| Business Solar — Pacific Power | $0.10/W, up to $9,500 |
| Business Battery Storage | $300/kWh, up to $9,000 |
| Solar Development Assistance | Up to $2,000 |
| Battery Development Assistance | Up to $3,000 |
Who qualifies? Eligible PGE and Pacific Power business customers meeting Energy Trust program and project requirements.
Energy Trust incentive amounts can change as funding is allocated, so businesses should confirm the latest rates before planning a project.
Check current Energy Trust solar and battery incentive amounts
Pacific Power Wattsmart Battery Program
Potential benefit: Upfront battery incentives and ongoing participation credits.
Qualifying Pacific Power commercial customers can receive an upfront incentive for enrolling compatible battery systems in the utility’s Wattsmart Battery Program.
Under the program changes effective July 1, 2026, eligible commercial battery systems up to 30 kW may receive $200 per kW. Additional annual bill credits may be available for continued participation.
Who qualifies? Eligible Pacific Power commercial customers installing approved batteries and agreeing to program requirements. Larger commercial systems require additional review and preapproval.
Eligible customers may also be able to combine this incentive with Energy Trust’s business battery-storage program.
Pacific Power Wattsmart Battery Program — 2026 Incentive Changes
Oregon Solar Property-Tax Exemption
Potential benefit: Reduced exposure to property taxes associated with qualifying solar investments.
Under Oregon Revised Statute 307.175, qualifying alternative-energy systems — including solar systems used primarily to offset onsite electricity consumption or meeting net-metering requirements — are exempt from Oregon property taxation.
In practical terms, that can prevent the value added by a qualifying commercial solar system from increasing the property’s taxable value.
Who qualifies? Owners of qualifying onsite or net-metered solar systems, subject to the statute’s requirements.
This can be particularly valuable for commercial and industrial properties with substantial solar installations. The law currently places a time limit on the exemption, making future legislative action worth monitoring.
Oregon Enterprise Zones
Potential benefit: Generally three to five years of property-tax abatement on qualifying new business investments.
Oregon Enterprise Zones provide tax incentives for eligible businesses locating or expanding within designated areas.
Who qualifies? Businesses meeting applicable location, investment, industry and other requirements. Manufacturers, processors, warehouses and certain industrial operations may qualify.
Although this is not exclusively a solar incentive, eligible solar and battery equipment may be relevant when incorporated into a larger qualifying capital project. Businesses should verify authorization requirements before construction.
Explore Oregon Enterprise Zones — Business Oregon
Additional Local Utility Incentives
Commercial incentives are not limited to PGE and Pacific Power territory. Several Oregon municipal utilities, PUDs and electric cooperatives offer their own programs.
| Electric Utility | Potential Incentive |
|---|---|
| Central Lincoln PUD | Solar rebates of $500 per kW DC up to $2,000 and qualifying battery rebates up to $2,000 |
| Salem Electric | $300 per kW for qualifying solar, up to $1,500 |
| City of Ashland | $600 incentive for qualifying solar installations |
| Umatilla Electric Cooperative | $300 per kW for qualifying solar, up to $1,500. |
Eligibility varies by service territory, customer classification, system size and available funding. Not every listed offering is available to every commercial customer.
Chat with our solar & battery experts to see how much you could save with solar & battery.
Also learn how battery backup could keep you, your family, & business safe & sound in power outages.
Agricultural & Rural Solar Incentives
Oregon farms, ranches, agricultural processors and rural businesses can benefit from many of the same federal tax credits and utility rebates available to commercial customers.
However, agricultural and rural operations have additional financing and assistance programs worth exploring.
Federal Solar Credits & Depreciation for Farms
Agricultural businesses may qualify for the Section 48E Clean Electricity Investment Credit, potentially providing 30% or more of eligible solar and battery project costs.
Qualifying agricultural businesses may also benefit from accelerated depreciation through MACRS and applicable federal bonus credits.
For agricultural producers installing solar to offset electricity used for irrigation, refrigeration, processing or other farm operations, these can represent substantial financial benefits.
See the federal investment credit and clean-energy depreciation guidance for additional information.
USDA Rural Energy for America Program — REAP Guaranteed Loans
Potential benefit: Guaranteed financing for eligible renewable-energy projects.
The USDA Rural Energy for America Program (REAP) supports agricultural producers and qualifying rural small businesses investing in renewable energy and energy-efficiency improvements.
REAP guaranteed loans can finance up to 75% of eligible project costs through participating lenders.
Who qualifies? Eligible agricultural producers and qualifying rural small businesses. Agricultural producers are not necessarily required to operate in a USDA-designated rural area.
Current status: As of October 2026, REAP guaranteed loans remain open, while USDA is not currently accepting REAP grant applications.
The guaranteed-loan program continues to provide financing support through commercial lenders for qualifying energy projects, and USDA’s FY2026 funding page continues to show available REAP guaranteed-loan authority.
Check current status at USDA REAP Program webpage.
Energy Trust of Oregon — Agricultural Solar & Battery Incentives
Potential benefit: Eligible agricultural businesses served by PGE or Pacific Power can receive a cash incentive toward qualifying commercial solar and battery installations.
As of October 1, 2026:
- PGE (solar): $0.10/W, up to $9,000
- PGE (battery): $300/kWh, up to $9,000
- Pacific Power (solar): $0.10/W, up to $9,500
- Pacific Power (battery): $300/kWh, up to $9,000
Energy Trust currently limits standard business solar projects to 360 kW AC, with an annual customer incentive maximum of $60,000 per utility.
Who qualifies? Most qualifying business customers of PGE and Pacific Power using an approved Energy Trust Solar Trade Ally. Certain very large customers that self-direct public-purpose charges may have different eligibility rules.
Eligible agricultural businesses served by PGE or Pacific Power may qualify for Energy Trust’s business solar and battery offerings.
Check Energy Trust’s current incentive report
Rural Renewable Energy Development Zones
Potential benefit: Three to five years of local property-tax abatement.
Oregon’s Rural Renewable Energy Development Zone (RRED) program provides tax benefits to eligible renewable-energy investments within designated rural areas.
Who qualifies? Eligible projects that generate renewable electricity, including solar, and meet applicable location and investment requirements. Certain larger projects may qualify for an employment-requirement waiver.
This program is typically most relevant to substantial rural renewable-energy developments rather than small onsite farm systems.
Explore RRED Zones — Business Oregon
Oregon Rural & Agricultural Energy Assistance Program
Potential benefit: Assistance covering 75% of eligible energy-assessment costs.
The Oregon Department of Energy’s Rural & Agricultural Energy Assistance Program supports agricultural producers and rural small businesses evaluating their energy usage.
While not a direct solar-installation rebate, the program can help reduce the cost of an energy assessment and support decisions about future energy improvements.
Who qualifies? Eligible Oregon agricultural producers and rural small businesses.
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We’ll evaluate your roof, sun exposure, electricity usage, incentives, and more to help you decide if solar is right for you!
Nonprofit & Government Solar Incentives
Nonprofits, municipalities, schools, counties and other public organizations have access to a combination of federal and utility incentives, along with specialized funding programs not generally available to traditional commercial businesses.
These opportunities can make solar and battery storage more affordable while helping organizations control operating expenses and strengthen energy resilience.
Federal Clean Electricity Credits Through Elective Pay
Potential benefit: A federal clean-energy credit of generally up to 30% or more, without requiring federal income-tax liability.
Through Elective Pay, also called Direct Pay, qualifying nonprofits and government organizations can access eligible federal clean-energy credits, including Section 48E.
Rather than using the credit to offset federal taxes, an eligible organization can generally receive the value of the credit through the federal tax system.
Who qualifies? Eligible tax-exempt organizations, local and state governments, school districts, public institutions, Tribal governments and certain other qualifying entities.
Organizations must meet the underlying credit requirements and complete IRS pre-filing registration.
Learn about Elective Pay — IRS
Energy Trust of Oregon — Enhanced Nonprofit Solar & Battery Incentives
Potential benefit: Higher solar and battery incentives for eligible nonprofit organizations.
Qualifying nonprofits served by PGE or Pacific Power may receive enhanced solar and battery incentives through Energy Trust of Oregon.
Energy Trust’s published 2026 nonprofit solar incentives were:
- PGE (solar): $0.60/W, up to $36,000
- PGE (battery): $300/kWh, up to $9,000
- Pacific Power (solar): $0.45/W, up to $27,000
- Pacific Power (battery): $300/kWh, up to $9,000
These are the published rates at the beginning of 2026, not a guarantee of current funding or rates. Energy Trust periodically reassesses incentives and allocations.
Who qualifies? Eligible nonprofit organizations meeting Energy Trust program requirements and served by PGE or Pacific Power.
Energy Trust’s 2026 Nonprofit Solar Incentive Announcement, as well as Incentives Program webpage.
Pacific Power Blue Sky Community Project Funding
Potential benefit: Competitive funding toward qualifying renewable-energy projects.
The Pacific Power Blue Sky Community Project program helps fund renewable-energy installations at community-serving, nonresidential sites.
Funding is awarded competitively rather than through a standard per-watt rebate.
Who qualifies? Eligible locally owned, community-serving projects within Pacific Power territory. Nonprofits, schools, community organizations and qualifying public facilities may be strong candidates.
Current program requirements include applicant funding contributions of approximately 20%–50% of eligible project costs, community engagement and approved battery participation where applicable.
Current status: Blue Sky is accepting and reviewing 2026 applications on a rolling, competitive basis, subject to available funding. See Pacific Power Blue Sky program page for updates.
EWEB Commercial Solar Incentive
Potential benefit: $0.50 per Watt AC, up to $12,500.
The Eugene Water & Electric Board Commercial Solar Program provides incentives specifically for qualifying nonprofit organizations, government entities and other public bodies.
Who qualifies? Eligible nonprofits, school districts, municipalities, government agencies and other qualifying public institutions in EWEB territory.
EWEB’s 2026 solar-incentive budget is limited. As of September 11, 2026, EWEB reported that 81% of its funding had been allocated.
Organizations should confirm remaining availability and receive the required preapproval before installing a system.
Chat with our solar & battery experts to see how much you could save with solar & battery.
Also learn how battery backup could keep you, your family, & business safe & sound in power outages.
Solar & Battery Incentives to Watch for 2027
Several valuable incentive and grant programs are currently closed, between funding rounds or awaiting new allocations.
While organizations should not include these funds as guaranteed savings in current project estimates, early planning may help them prepare for future opportunities.
| Program | Potential Benefit | Who Should Watch |
|---|---|---|
| Federal Low-Income Communities Bonus | Additional 10 or 20 percentage points | Qualifying projects under 5 MW, including certain commercial and community-serving projects |
| USDA REAP Grants | Grant assistance subject to forthcoming rules | Agricultural producers and qualifying rural small businesses |
| ODOE Community Renewable Energy Grants | Up to $100,000 planning or $1 million construction | Public bodies, Tribes, consumer-owned utilities and eligible project partners |
| Oregon Solar + Storage Rebate | Up to $30,000 solar and $15,000 battery | Qualifying low-income service providers |
| PGE Renewable Development Fund | Competitive project funding | Community-serving, nonprofit and eligible PGE projects |
| Portland Clean Energy Community Benefits Fund | Competitive grants for eligible renewable-energy projects | Qualifying Portland nonprofit and community projects |
Federal Low-Income Communities Bonus — 2027 Applications
The federal Section 48E(h) Low-Income Communities Bonus can add 10 or 20 percentage points to the investment credit for qualifying facilities under 5 MW.
Who qualifies? Eligible projects in designated low-income communities or on Indian land, and certain low-income residential and economic-benefit projects. A federal allocation is required.
Current status: The 2026 application window is closed. Applications for 2027 are scheduled to open February 1, 2027.
USDA REAP Grants — New Funding Round Expected
REAP grants have historically helped eligible agricultural producers and rural businesses fund renewable-energy projects.
However, USDA is restructuring REAP and issued updated program rules in October 2026. Future solar-project eligibility, reimbursement and application requirements may differ substantially from earlier grant rounds.
Current status: Not accepting grant applications. Watch for the next USDA funding announcement.
Oregon Community Renewable Energy Grant Program
The Oregon Community Renewable Energy Grant Program supports qualifying community renewable-energy and resilience projects.
Potential funding:
- Planning grants up to $100,000
- Construction grants up to $1 million
- Eligible community renewable-energy construction projects may receive up to 50% of project costs; qualifying resilience projects may receive up to 100%
Direct applicants are primarily public bodies, Tribes and consumer-owned utilities, although eligible nonprofit and private-sector partnerships may participate.
Current status: Applications are closed. Oregon Department of Energy (ODOE) reports approximately $10 million remains to be awarded in future funding activity.
Oregon Solar + Storage Rebate Program
The Oregon Solar + Storage Rebate Program provides solar and battery rebates to qualifying residential customers and low-income service providers.
For qualifying low-income service providers, rebates can reach $30,000 for solar and $15,000 for battery storage, subject to program requirements.
Current status: Closed. The June 2026 reopening exhausted its available funding. Future allocations have not been guaranteed.
PGE Green Future Renewable Development Fund
PGE’s Green Future Renewable Development Fund provides competitive funding toward qualifying renewable-energy and battery projects.
Projects hosted by nonprofits receive particular consideration, although other organizations may also qualify under program rules.
Current status: The latest published application information relates to the 2025 round. Watch for a future funding announcement.
Portland Clean Energy Community Benefits Fund
The Portland Clean Energy Community Benefits Fund (PCEF) provides funding for qualifying nonprofit and community projects addressing energy efficiency, renewable energy and climate resilience.
Solar and battery projects may qualify under applicable funding categories.
Current status: The 2026 Community Grants application window closed May 27, 2026. Future grant rounds are worth monitoring.
Also Watch: Annual Utility Incentive Updates
Not every future incentive requires a new statewide program.
Energy Trust of Oregon, EWEB and other utilities periodically revise funding levels, rebate amounts and program requirements. Organizations considering solar should monitor these changes and confirm whether applications must be approved before construction begins.
Can Oregon Solar Incentives Be Combined?
Yes. Depending on the project, multiple incentives can often be combined to reduce the net cost of solar and battery storage.
For example, a qualifying taxable business may benefit from the federal Section 48E investment credit, applicable federal bonuses, Energy Trust incentives, accelerated depreciation and Oregon property-tax treatment.
An agricultural operation may combine federal and utility incentives while considering REAP guaranteed financing.
A qualifying nonprofit may be able to pair federal Elective Pay with utility incentives and eligible grant funding.
However, not every combination is permitted, and receiving one incentive can affect the tax treatment or calculation of another. Tax status, equipment, utility territory, project ownership and construction timing all play important roles.
The most effective approach is to evaluate incentive eligibility early and speak with a knowledgeable solar company like Green Ridge Solar to determine your incentive eligibility.
Find Out Which Oregon Solar Incentives Apply to Your Organization
Oregon continues to offer valuable incentives for businesses, farms, industrial operations, nonprofits and government organizations considering solar and battery storage.
But eligibility, funding availability and program deadlines can change quickly — especially as the December 31, 2027 federal solar deadline approaches for affected projects.
Green Ridge Solar helps Oregon organizations understand their solar and battery opportunities and build solutions around their financial goals, energy needs and long-term plans.
Our experienced in-house team provides turnkey commercial solar solutions, coordinating design, permitting, utility requirements, installation and ongoing service. We also work with project owners, contractors, engineers and other stakeholders to help keep complex projects organized and running smoothly.
Ready to explore your options? Contact Green Ridge Solar for a commercial solar and battery analysis and learn which incentives may apply to your organization.
Disclaimer: Incentive amounts, eligibility requirements, application periods and funding availability are subject to change. This article provides general information as of October 2026 and is not tax, financial or legal advice. Organizations should confirm program details with the administering agency and consult qualified professionals regarding tax incentives and project eligibility.
GET YOUR FREE SOLAR ANALYSIS
Request your FREE solar analysis now!
We’ll evaluate your roof, sun exposure, electricity usage, incentives, and more to help you decide if solar is right for you!
