A typical online quote for home solar in Oregon is $12,000 to $17,000 for a 5 kW system. Our calculations suggest that this is very optimistic Using data from real-life installations, we found that the average homeowner in Oregon actually pays around $43,000 to install a much larger, 10 kW, system.
Why the discrepancy between online solar quotes and the cost of actual installations?
The biggest factor is simply size. Most online quotes are based on a 5 kW model. While that might work in sunnier locales, most Oregonians will need a larger solar array to meet household electricity needs. Thankfully, Oregon provides a plethora of state solar incentives, helping to lower the upfront cost of solar and increase savings to shorten the solar payback period to just six years for some homeowners!
Oregon and the Pacific Northwest in general have a reputation for being cloudy and rainy. This means many homeowners here don’t imagine home solar makes much sense. In reality, Oregon is a great place to go solar as an efficient array can generate electricity even on cloudy days. Additionally, the state of Oregon offers impressive financial incentives to folks looking to install solar. In some cases, you can get solar installed almost for free in Oregon!
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Judging by our calculations for California, most online solar marketplaces often quote prices that are almost 63 percent below real-life costs.
To work out the cost of going solar in Oregon in 2023, I used the most up to date data from the Lawrence Berkeley National Laboratory’s Tracking the Sun report.
The cost of home solar in Oregon
The LBNL data from real installations in 2022 and the first two months of 2023 gives a price per Watt of $4.20 for residential rooftop solar in Oregon. The average size of systems was 10.33 kW DC, working out to a total average cost of $43,369.
As in other areas, larger systems had a lower cost per Watt than smaller systems, thanks to the economies of scale. The range in cost per Watt was a whopping $6.34. The smallest system listed in the data was just 2.4 kW DC, with a cost per Watt of more than $9.25. In contrast, of the 25 or so systems around 10.5 kW DC in size, the average cost per Watt was just $3.91. The median cost per Watt was $3.98, for a median system size of 9.25 kW DC.
The true cost of going solar in Oregon depends, then, on the size of system you install, as well as things like:
- Which modules, inverters, and batteries you choose
- Whether you install solar batteries
- Your chosen installer
- Any rebates, tax credits, and other incentives.
In general, though, we put the likely cost of home solar in Oregon in 2023 at around $43,300.
The 2022 data from LBNL suggested a median (middle of the range) solar panel system cost of $3.57 per Watt for 2021 and early 2022 systems. The median system size was just 7.3 kW, however, for a median system cost of $26,106.
The data for 2022 and early 2023 shows that median costs increased. This is because more larger systems were installed, for a median system size of nearly 2 kW larger (9.25 kW) and a median total cost of $36,821. The median cost per Watt rose to $3.98.
Online solar quote marketplaces give a figure of around $3.02 per Watt for home solar in Oregon, as of September 2023. Our calculations for the cost of solar in California suggest, however, that online quote marketplaces are underestimates by around 62.86% on average.
How big a solar array do you need in Oregon?
Most online solar marketplaces offer quotes for rooftop solar systems sized at 5 kW. While this is likely a good fit to meet the electricity needs of super sunny spots in the U.S., Oregonians might want to install a larger array to make up for the cloudier conditions.
Using data from the Energy Information Administration (EIA), including the number of residential customers and total electricity provided, we calculated that Oregon households used 936 kWh monthly, or around 11,232 kWh annually on average in 2021. This is a little higher than the overall U.S. average of 10,632 kWh per household.
Note, too, that many Oregonians use natural gas to heat their homes and water and enjoy the benefits of living in a more temperate climate than many others in the U.S. This can translate to lower annual electricity consumption than average. If, in addition to installing solar, you’re also planning to switch to heat pumps or using other electric heating and hot water system, however, your annual electricity consumption will be higher than on your current bills.
A 5 kW is likely, therefore, to meet around 50-65% of household energy needs in Oregon. That means you’d want to install a system of around 10 kW to meet 100% of household electricity needs. (I calculated this using the SunWatts calculator, which gives us a suggested array size of 10.03 kW for Oregonians.)
I ran the numbers again, factoring in the likely error in online quotes, and the need for a bigger system overall. Here’s how things shake out for solar costs in Oregon in 2023:
| Cost per Watt | Cost for 5 kW system | Cost for 10.03 kW DC system | Net cost with ITC | |
| Online quote marketplaces | $3.02 | $15,100 | $30,291 | $21,203 |
| Quotes factoring in average discrepancy | $4.80 | $24,022 | $48,187 | $33,731 |
| LBNL 2022 and early 2023 | $4.20 | $21,000 | $42,126 | $29,488 |
If you’ve been considering home solar on the basis of online quotes, the figures from real-life installations may be disheartening. While the true cost of solar might now appear out of reach, it’s worth digging into the incentives for solar in Oregon.
With a little help from the federal, state, and local governments, and utilities, many Oregonians can lower that upfront cost, increase annual savings, and cut their solar payback period to just 6-10 years.
Lowering the cost of solar in Oregon – rebates, tax credits, and more
The federal government offers a 30% solar investment tax credit to help lower the cost of going solar in the U.S. This doesn’t lower the upfront cost, but it can help homeowners recoup thousands of dollars when filing taxes the following year. In some cases, homeowners can access a bridge loan that is payable in full once they get their tax credit (note, it’s not a rebate, so you’ll only get a check if you overpaid your taxes).
The Oregon Solar + Storage Rebate Program is another major financial incentive for home solar in Oregon. This program provides rebates for solar energy systems that include storage. Note, you can’t use this rebate to add storage to an existing system and the level of rebate varies depending on household income and eligibility for utility rebates.
One great thing about this state rebate program is that the rebate goes directly to your solar installer. This means less paperwork for homeowners and a lower upfront price to install solar (you don’t have to pay more upfront and wait around for a rebate check!). The rebate for 2023 stands at up to $5,000 for a solar electric system and up to $2,500 for battery storage. Read more about this and other Oregon solar incentives here.
Oregon offers a Solar Within Reach program where low-income families can receive rebates from PGE and Pacific Power when they install solar. The rebates from PGE are $1.40/watt to a maximum of $8,400 per home. For Pacific Power, the rebate is $1.00/watt to a $6,000 maximum per home.
Other goods news: There is no state sales tax in Oregon, so homeowners won’t pay sales tax on home solar here!
Now we have a better sense of how much solar costs in Oregon and how to lower those upfront costs, let’s look at how much Oregonians stand to save by going solar.
How much does electricity cost in Oregon?
As of June 2023, the cost of electricity for Oregonians was around $13.12, up from an average of 11.70 cents/kWh for residential electricity in 2022, according to the EIA. With average Oregon household electricity consumption estimated at 11,232 kWh annually, that works out to a yearly cost of $1,474. This is quite a bit lower than the national average for the cost of electricity, but still means homeowners in Oregon stand to save money long-term by going solar.
Factoring in the current rate of inflation (3.62%), a homeowner going solar in Oregon in 2023 could save more than $65,000 on electricity over the 25-year warranty period of most solar panels. Of course, electricity price increases don’t always track with inflation. In fact, the price increase from 2022 to 2023 was a staggering 12% for Oregonians.
Factoring in that kind of price hike each year, homeowners could save an incredible $250,000 over 25 years.
What’s more, while solar panel warranties are usually capped at 25 years, the panels continue to work long after, meaning ongoing savings for most homeowners.
How much can you save by going solar in Oregon?
Let’s run a few scenarios to see how much homeowners in Oregon could save by going solar.
At a 3.62% rate of inflation, Oregon households using 11,232 kWh of electricity annually could see the following savings by going in solar in 2023:
- Over 5 years – $7,921
- Over 10 years – $17,384
- Over 15 years – $28,688
- Over 25 years – $65,623.
The actual savings will vary depending on inflation, the system’s output, electricity tariffs, battery storage and other factors.
Putting it all together – Your solar payback period in Oregon
As we’ve seen, most Oregon homeowners should expect to pay significantly more upfront for home solar compared to quotes churned out by many online solar marketplaces. These engines exist to funnel customers toward solar installers, meaning they’re incentivized to quote lower prices that pique your interest.
Knowing that the likely cost of home solar is quite a bit higher than those initial quotes can help homeowners make more informed decisions and avoid huge disappointment when reality sets in with that final bill. Another key part of deciding when or if to go solar at home is to calculate your likely solar payback period.
This calculation helps homeowners work out when they can expect to fully recoup the upfront cost of going solar. After this point, any annual savings on electricity bills can be considered genuine savings.
As you’d expect, the solar payback period is typically shorter for smaller arrays. It’s also shorter in areas with high electricity costs, solid net metering rules, performance based incentives and solar renewable energy certificates (SRECs).
Because Oregonians will likely want to install a larger array, and because electricity costs are lower than average in the state, expect a longer solar payback period than in, say, Hawaii or California where electricity costs more and there are more sunny days.
Here are a few examples of projected solar payback periods for Oregon homeowners going solar.
Assuming a 2.4% inflation rate and average energy use and costs, plus maximum rebates
Gross cost of a 5 kW solar array = $4.19/Watt x 5,000 = $32,025
Minus potential state rebate = $5,000 plus $2,500
Minus potential utility rebate = $7,000
Subtotal = $6,450
Federal tax credit of 30% = $1,935
Net cost of solar = $4,515
Cost of electricity = $0.117 per kWh
Average electricity use in Oregon = 10,995 kWh per year
Estimated cost of electricity for first 7 years = $9,680
Seven-year savings (assuming array meets 50% of electricity needs) = $4,840
Solar payback period = 6-7 years!
Assuming a 7.1% increase in electricity costs each year and average electricity use
Gross cost of a 5 kW solar array = $4.19/Watt x 5,000 = $32,025
Minus potential state rebate = $5,000 plus $2,500
Minus potential utility rebate = $7,000
Subtotal = $6,450
Federal tax credit of 30% = $1,935
Net cost of solar = $4,515
Cost of electricity = $0.117 per kWh
Average electricity use in Oregon = 10,995 kWh per year
Estimated cost of electricity for first six years = $9,225
Six-year savings (assuming array meets 50% of electricity needs) = $4,613
Solar payback period = less than 6 years!
Assuming a 2.4% inflation rate and average energy use and costs but a larger array
Gross cost of a 9.82 kW solar array = $4.19/Watt x 9,820 kW = $32,025
Minus potential state rebate = $5,000 plus $2,500
Minus potential utility rebate = $8,400
Subtotal = $25,246
Federal tax credit of 30% = $7,574
Net cost of solar = $17,672
Cost of electricity = $0.117 per kWh
Average electricity use in Oregon = 10,995 kWh per year
Estimated cost of electricity for first 12 years = $17,647
Twelve-year savings (assuming array meets 100% of electricity needs) = $17,647
Solar payback period = just over 12 years.
Assuming a 7.1% inflation rate and average energy use and costs but a larger array
Gross cost of a 9.82 kW solar array = $4.19/Watt x 9,820 kW = $32,025
Minus potential state rebate = $5,000 plus $2,500
Minus potential utility rebate = $8,400
Subtotal = $25,246
Federal tax credit of 30% = $7,574
Net cost of solar = $17,672
Cost of electricity = $0.117 per kWh
Average electricity use in Oregon = 10,995 kWh per year
Estimated cost of electricity for first 10 years = $17,858
Ten-year savings (assuming array meets 100% of electricity needs) = $17,858
Solar payback period = just under 10 years.
Assuming a 2.4% inflation rate, average energy use, a larger array, but lower rebates and lower cost per Watt (per median from LBNL data)
Gross cost of a 9.82 kW solar array = $3.57/Watt x 9,820 kW = $35,057
Minus potential state rebate ($0.50 per Watt DC) = $4,910
Subtotal = $30,147
Federal tax credit of 30% = $9,044
Net cost of solar = $21,103
Cost of electricity = $0.117 per kWh
Average electricity use in Oregon = 10,995 kWh per year
Estimated cost of electricity for first 14 years = $21,108
Fourteen-year savings (assuming array meets 100% of electricity needs) = $21,108
Solar payback period = just under 14 years.
Even with lower rebate rates, lower inflation, and a larger array, homeowners in Oregon stand to enjoy more than a decade of free electricity within the warranty period of their solar panels. After that, the savings continue to add up as solar panels don’t just stop producing electricity after the warranty expires.
Final thoughts on the cost of going solar in Oregon
The Pacific Northwest might not seem like an obvious location for home solar energy systems, but many Oregonians have run the numbers and already gone solar at home. Those homeowners are protected against utility price increases, have a back-up source of electricity (depending on the system design), and are likely to pay off the cost of going solar in 6-14 years.
The cost of solar in Oregon has decreased in recent years and is set to keep going down. That said, most of the huge decreases in cost have already happened and utility rebates are likely to start drying up as more utilities in the state meet their renewable portfolio standard requirements. As such, installing home solar now looks like a bright move in the Beaver State.
When choosing a solar installer, make sure to check they design a system that is as futureproof as possible. For example, if you heat your home with natural gas, like a quarter or so of Oregon residents, but you plan to switch to an electric heat pump and heat pump hot water, you may need a slightly larger array to meet future energy needs. Similarly, if you plan to install an electric vehicle charger in the future, or are expecting your family to grow, installing a larger system now and getting the rebates and tax credit to match can save money down the road. Many rebates and incentives are a one-time thing and aren’t available for add-ons to existing systems.
Find out more about how to size your home solar energy system.