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The Two Incentive Paths
In the past there was only one incentive "path" to take when going solar. Energy Trust of Oregon cash incentives in combination with Oregon State Tax credits is still one of the best incentive paths in the nation. Now there is another great option. It's called the Oregon Feed-in Tariff. It's modeled after a program in Germany which helped grow their economy by fueling solar installations and creating jobs in clean technology. Now that you have two incentive paths to choose from, you can look at the examples below to see which will work better for you. If you have any questions, please feel free to call or email us. |
Oregon Feed-in Tariff Incentive Path
The Oregon Feed-in Tariff makes cents! The major difference from the Energy Trust and state tax credit incentive path is that there is a larger out of pocket expense and a greater return on investment. For some people, this will make the going solar more attractive.
2.3 kW Solar Photovoltaic System
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5.2 kW Solar Photovoltaic System
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Out of Pocket Cost
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$14,950
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Out of Pocket Cost
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$28,952
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30% Federal Tax Credit
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-$4,485
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30% Federal Tax Credit
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-$8,685
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Net Cost
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$10,465
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Net Cost
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$20,267
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Simple Payback
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7.65 Years
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Simple Payback
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6.5 Years
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| Annual Production Value |
$1,366 |
Annual Production Value |
$3,071 |
15 Year Value of Energy Produced
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$24,219
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15 Year Value of Energy Produced
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$54,440
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15 Year Return on Investment
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230%
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15 Year Return on Investment
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270%
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Energy Trust of Oregon and State Tax Credits Incentive Path
For some people, the Energy Trust of Oregon incentive path makes more sense than the Feed-in Tariff. The major difference is that with Energy Trust incentives there is less out of pocket expense. The drawbacks are that the pay back period is longer and has a much lower lifetime value (in these two examples) than the Feed-in Tariff incentive path.
2.3 kW Solar Photovoltaic System
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5.2 kW Solar Photovoltaic System
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System Cost
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$14,950
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System Cost
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$28,952
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Energy Trust Incentive
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-$4,025
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Energy Trust Incentive
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-$9,048
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Out of Pocket
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$10,925
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Out of Pocket
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$19,904
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Oregon Tax Credit
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-$6,000
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Oregon Tax Credit
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-$6,000
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Federal Tax Credit
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-$3,278
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Federal Tax Credit
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-$5,971
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Net Cost
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$1,647
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Net Cost
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$7,933
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Simple Payback
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6.6 years
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Simple Payback
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14.21 years |
15 Year Value of Energy Produced
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$3,720
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15 Year Value of Energy Produced
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$8,375
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Return on Investment
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225%
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Return on Investment
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105%
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About these Examples
These examples are designed to be informative and helpful for your research. It's impossible for us to give a set price because there are so many variables involved in going solar. These examples used the following assumptions:
- Locally Made Solar World modules
- $6.50/watt installed cost for the 2.3 kW system
- $5.60/watt installed cost for the 5.2 kW system
- Energy Trust of Oregon incentive of $1.75/watt
- Perfect power production (perfect tilt, no shading, etc)
- Feed-in tariff pays $0.65 per kwh produced
- Energy Trust incentive example uses $0.10 per kWh for production value
- No additional charges for extra steep roofs, 3 level homes, etc.
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