Energy Tax Credits, Utility Rebates, & Other Incentives

For specific renewable energy incentives in your state check www.dsireusa.org.

Solar pool heating system qualify for some state and utility rebate programs.  SDHW systems currently qualify for federal credits as well.

Energy tax credits are available in Hawaii and Oregon for any solar thermal (pool or hot water), PV, or wind system.  Each credit is different in amount and requirements by state but similar in that the credit is taken against individual or business income taxes.  For example, for any residential application, the Hawaii credit is 35% up to $1750 and the Oregon credit is 50% up to $1500.  Both states also have commercial credits.  In Oregon, Business Energy Tax Credits (BETC) are 50% of system costs and generally are carried over 5 years unless under $20,000.  Either are great incentives to invest in renewable energy.  Definitely take advantage of them if you live in these state. 

Highlights of the Oregon Energy Credit:

• Both homeowners and renters qualify.
• System can be on primary and/or second homes
  • Location of system must be in Oregon
• Additional property value resulting from the installation of solar equipment is exempt from property taxes.
• Credits are taken against Oregon tax liability or,
• New credit pass-through option
  • for those without an OR tax liability, credit can be transferred to a business or resident with a tax liability.
  • Purchaser of equipment gets cash payment of 95% of certified tax credit amount
• Systems can be self-installed or by a qualified contractor.
• Pool solar systems must exceed 40% of pool surface area and the pool must have an insulating cover. 
•  * For commercial systems, the Business Energy Tax Credit is up to 35% of the total cost of a system; no maximums. The tax credit is claimed over 5 years:  10% the first two years and 5 % the remaining three years.  If the eligible project costs are $20,000 or less, the tax credit may be taken in one year.

Energy Trust Rebates (Portland General Electric and Pacific Power)

• Rebates are available for most solar applications including pool heating
• Contact directly at www.energytrust.org for details
• System must be installed by one of ETO trade ally contractors.  Self-installs to not qualify

Bonneville Power Administration (BPA) - The Bright Way to Heat Water™ Utility Solar Water Heater Program

• Certifies Energy Trust Program and others
• Contact them at www.bpa.gov

There is also a federal credit for business/commercial applications; the Business Energy Investment Tax Credit which is 10% of the system cost.  There is also a 30% federal credit up to $2000 on SDHW systems. 

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Page last updated: February 03, 2009