THE 2018 OREGON SOLAR CASH INCENTIVE: OVERVIEW
Energy Trust of Oregon has increased their residential solar, cash incentive rate. Homeowners will now see a much lower cost barrier to going solar. However, because the Oregon Residential Energy Tax Credit expires at the end of 2017, solar payback for an average Oregon homeowner may be extended by around 3-6 years.
This article outlines exactly what this cash rebate is and how it works.
Read on!
What Is the 2018 Solar Cash Incentive?
The 2018 Solar Cash Incentive from the Energy Trust of Oregon is a cash payment, offered to homeowners that add solar pv panels to their homes. If you wish, this payment can be made directly to a Trade Ally contractor, lowering your upfront cost significantly.
Homeowners must be located in PGE or Pacific Power Territory to qualify. Here are the current January, 2018 rates:
Homeowners must be located in PGE or Pacific Power Territory to qualify. Here are the current January, 2018 rates:
Portland
|
Old Oct. 2017 Value |
NEW Jan. 2018 Value |
Net Increase: $2,700
And, for Pacific Power customers, here are the rates:
Pacific Power
|
Old Oct. 2017 Value |
NEW Jan. 2018 Value |
Net Increase: $2,500
How Do I Get the 2018 Oregon Solar Cash Incentive?
To be eligible to receive the 2018 Cash Payment, you must:
- Be a homeowner.
- Pay either PGE or Pacific Power for your electricity.
- NOT have applied for the State of Oregon's, Residential Energy Tax Credit (RETC).
- Contact an Energy Trust of Oregon Trade Ally, like Synchro Solar. Then:
- Complete a free site evaluation and confirm a 75% (or better) solar energy resource.
- "Go Solar" in 2018, before the new rate is lowered.
When Will Energy Trust Lower the Step 1 Rate?
There is no way to know exactly when the Energy Trust will lower its rate. This is because the Solar Cash Incentive is set up to be responsive to market conditions.
Is There a Time Estimate for When the Rate Will Drop?
Not exactly.
Each year, the Energy Trust allocates a certain level of funding for cash payments. This funding is then distributed into a "Step" system.
Each step of this system is given a funding cap. For example, last year, the Step 1 funding allocation for PGE customers was $200,000.
As applications for funding come in through Trade Ally contractors, the money available for payments at the current rate is reduced. Once the funding available in that step is exhausted, the rates are lowered.
Last year, Step 1 funding ran out in early February, 2017. However, there is no way to know when funding will run out this year.
Please contact us for information on this year's allocation.
Each year, the Energy Trust allocates a certain level of funding for cash payments. This funding is then distributed into a "Step" system.
Each step of this system is given a funding cap. For example, last year, the Step 1 funding allocation for PGE customers was $200,000.
As applications for funding come in through Trade Ally contractors, the money available for payments at the current rate is reduced. Once the funding available in that step is exhausted, the rates are lowered.
Last year, Step 1 funding ran out in early February, 2017. However, there is no way to know when funding will run out this year.
Please contact us for information on this year's allocation.
What Happens if Step 1 Funding Is Exhausted?
Once Step 1 funding is exhausted, Energy Trust will lower the cash rebate amount. This will begin the Step 2 funding period.
When Step 2 funding is exhausted, Energy Trust will lower the incentive again.
In 2017, the cash rebate rate was lowered 4 times for both Pacific Power and PGE customers (residential). We finished the year with Step 5 level funding.
When Step 2 funding is exhausted, Energy Trust will lower the incentive again.
In 2017, the cash rebate rate was lowered 4 times for both Pacific Power and PGE customers (residential). We finished the year with Step 5 level funding.
Is It Possible to Predict the Cash Rebate Amount of Future 2018 Steps?
Yes it is.
The Energy Trust makes this information publicly available, but finding it can be difficult. Please contact us for more information if you are interested.
The Energy Trust makes this information publicly available, but finding it can be difficult. Please contact us for more information if you are interested.
Will the Rate Increase Again for Next Year?
This is impossible to predict.
Next year's funding will be based on market conditions and available funding. It could be significantly lower than this year's cash incentive level, or approximately the same. We don't know.
It is very unlikely that the rate will be higher.
Next year's funding and cash rebate amounts will be announced toward the end of 2018.
Next year's funding will be based on market conditions and available funding. It could be significantly lower than this year's cash incentive level, or approximately the same. We don't know.
It is very unlikely that the rate will be higher.
Next year's funding and cash rebate amounts will be announced toward the end of 2018.
Where Does This Funding Come From?
Funding for the Energy Trust of Oregon Solar Cash Incentive comes from a small charge on the bill of every ratepayer that purchases electricity from PGE or Pacific Power.
This small charge is aggregated and donated to the Energy Trust of Oregon (ETO). The ETO then uses it to provide services, discounts and cash payments for energy efficiency and renewable energy projects.
This small charge is aggregated and donated to the Energy Trust of Oregon (ETO). The ETO then uses it to provide services, discounts and cash payments for energy efficiency and renewable energy projects.
Why Did ETO Raise the Rate by So Much?
The Energy Trust of Oregon raised the solar incentive amount because the Residential Energy Tax Credit (RETC) is ending.
The end of the RETC changed the market conditions here in Oregon, so the non-profit Energy Trust Board of Directors voted to increase the solar rebate to help compensate.
Originally, the RETC was a $6000 tax credit, taken at $1,500/year over 4 years. It was administered directly by the Oregon Department of Energy. It is no longer available, as of January 1st, 2018.
The new solar rebate amount will become available on January 9th, 2018.
The end of the RETC changed the market conditions here in Oregon, so the non-profit Energy Trust Board of Directors voted to increase the solar rebate to help compensate.
Originally, the RETC was a $6000 tax credit, taken at $1,500/year over 4 years. It was administered directly by the Oregon Department of Energy. It is no longer available, as of January 1st, 2018.
The new solar rebate amount will become available on January 9th, 2018.
What Is the Impact of This Change on My Solar Investment and ROI?
If you read our popular article "Solar Incentives Are Ending... and It's GREAT NEWS for 2018! Here's Why..." then you know that the RETC was no longer necessary.
Solar is becoming cost competitive with traditional forms of electricity, without subsidies. As a result, an investment in solar power, at today's prices, would likely return an investment that is predicted to beat the stock market*.
The increased solar rebate enhances this return on investment many fold!
*Please read our article about 2018 solar incentives for more information about our stand on this topic. This statement requires the Federal Solar Tax Credit as of January, 2018.
Solar is becoming cost competitive with traditional forms of electricity, without subsidies. As a result, an investment in solar power, at today's prices, would likely return an investment that is predicted to beat the stock market*.
The increased solar rebate enhances this return on investment many fold!
*Please read our article about 2018 solar incentives for more information about our stand on this topic. This statement requires the Federal Solar Tax Credit as of January, 2018.
What if This Is the Wrong Time for Me to Go Solar?
Don't panic!
If the timing for you to go solar isn't right, we don't want you to push your financial situation. Here at Synchro, we want you to make the best choice for your home and family. That means no high-pressure sales.
When you contact us, we seek to educate you on what is available. We never try to "sell" you on anything you are uncomfortable with. That's the benefit of working with us, your local neighbors here in the Portland Metro Area!
The reality is that an investment is solar energy (both pv and solar hot water) will remain a solid investment opportunity, even when the Energy Trust lowers its rates.
We believe that it is still beneficial for you to complete a free site evaluation, however.
This will allow you to plan your timing wisely and help you consider all of the options available to you, including financing, additional tax credits and same-as-cash loan opportunities.
There is never any pressure.
Call us at (503) 208-4786.
If the timing for you to go solar isn't right, we don't want you to push your financial situation. Here at Synchro, we want you to make the best choice for your home and family. That means no high-pressure sales.
When you contact us, we seek to educate you on what is available. We never try to "sell" you on anything you are uncomfortable with. That's the benefit of working with us, your local neighbors here in the Portland Metro Area!
The reality is that an investment is solar energy (both pv and solar hot water) will remain a solid investment opportunity, even when the Energy Trust lowers its rates.
We believe that it is still beneficial for you to complete a free site evaluation, however.
This will allow you to plan your timing wisely and help you consider all of the options available to you, including financing, additional tax credits and same-as-cash loan opportunities.
There is never any pressure.
Call us at (503) 208-4786.
What Else Should I Know?
We understand that going solar is a big decision, and there is a lot to consider!
That is why we encourage you to take your time with your research and decision making, then reach out when you feel ready. We care about your experience of going solar as much as your return on the investment!
In the meantime, take a look at the 8 essential things we feel you consider about going solar with anyone.
Thank you for becoming a part of our positive energy future!
That is why we encourage you to take your time with your research and decision making, then reach out when you feel ready. We care about your experience of going solar as much as your return on the investment!
In the meantime, take a look at the 8 essential things we feel you consider about going solar with anyone.
Thank you for becoming a part of our positive energy future!