Solar Water Heating Incentive Program

October 14, 2014

Summary

Note: After reviewing data provided by the Energy Trust and conducting a public comments process during summer and fall of 2014, the Oregon Public Utilities Commission concluded that Energy Trust incentives must be discontinued for residential and commercial solar water heating and solar pool heating measures because they are no longer passing the cost-effectiveness tests. As a result, incentives will be discontinued November 7, 2014. Read the full announcement here.  

The Energy Trust of Oregon's Solar Water Heating (SWH) Incentive Program offers incentives to customers of Pacific Power, PGE, NW Natural Gas and Cascade Natural Gas who install solar water or pool heating systems on their homes, office buildings, community buildings, agricultural, and municipal facilities. Energy Trust is a nonprofit organization created to invest public purpose funding in energy efficiency and renewable energy development in Oregon.

Commercial incentives are calculated by multiplying the incentive rate by the estimated annual energy savings and residential incentives are a flat rate per system based on the location of the system. Zone 1 is Northwest Oregon, and Zones 2 and 3 are Southwest Oregon and East of the Cascades. The incentive is paid to the solar contractor and deducted from the customer's final cost as follows:

Electric water heating:

• Residential solar water heating: $1,000 for customers in Zone 1 and $1,200 for customers located in Zones 2 and 3
• Commercial and multifamily solar water heating: $0.40 per first-year kilowatt-hour (kWh) savings

Gas water heating:

• Residential solar water heating: $550 for customers in Zone 1 and $700 for customers in Zones 2 and 3
• Commercial and multifamily solar water heating: $6.00 per first-year therm savings

Solar pool heating:

• Solar pool heating using unglazed collectors (outdoor pools): $3.00 per square foot of collector area, up to 50% of project cost
• Solar pool heating using unglazed collectors (indoor pools): $4.50 per square foot of collector area up to 50% of project cost
• Solar pool heating using glazed collectors (indoor and outdoor pools): $0.40 per kWh or $6.00 per therm up to 35% of project cost for commercial or multifamily; based upon estimated annual energy savings for residential

The Energy Trust SWH Program has installation standards and maintains a list of eligible residential systems. To be eligible, residential systems must be Solar Rating and Certification Corporation (SRCC) OG-300 rated and must also meet additional Energy Trust requirements.

Energy Trust maintains a list of contractors and will provide referrals to contractors from their trade ally network. The contractor will help select a solar water heating system and provide a system quote estimating annual performance, installation date, and the cost after incentive deductions. The contractor will explain maintenance and warranty details and how to apply for tax credits available from the state and federal governments.

Oregon also offers renewable energy personal tax credits.