Skip Navigation

The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook


Incentives/Policies for Renewables & Efficiency

Printable Version
Residential Energy Tax Credit   

Last DSIRE Review: 01/05/2015
Program Overview:
State: Oregon
Incentive Type: Personal Tax Credit
Eligible Efficiency Technologies: Water Heaters, Furnaces , Heat pumps, Heat recovery, Duct/Air sealing, Heat Pump Water Heaters, Drain-water heat recovery, Direct vent natural gas or propane fireplaces
Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Fuel Cells, Geothermal Heat Pumps, Alternative Fuel Vehicle Fueling or Charging Devices, Solar Pool Heating, Fuel Cells using Renewable Fuels
Applicable Sectors: Residential
Amount:PV: $1.70/W-DC at STC for systems installed on or after January 1, 2015. Credits vary for older systems.
Wind Electric Systems: $2/kWh produced in first year
Spa/pool heating: $0.15/kWh saved
Space heating, cooling, electrical energy or hot water heating: $0.60/kWh saved
Alternative fuel device: 25% of eligible cost Fuel cell: $3/W.
Maximum Incentive:PV, Fuel Cells and Wind Turbines: $6,000 ($1,500 per year for 4 years), up to 50% of net cost.
PV, Fuel Cells, Wind Turbines and Ground Source Heat Pumps: One tax credit per year per residence
Swimming pool, spa or hot tub heating: $1,500 or 50% of device cost
Alternative fuel device: $750 or 25% of device cost
For all others: $1,500
Eligible System Size:Fuel cells: 0.5 - 10 kW
Equipment Requirements:Must carry manufacturer’s warranty; must comply with general and specific standards in ORS 469B.100 through 469B.118. Must obtain system certification from the department specific to the type of device.
Installation Requirements:Contractor must certify that the AED was installed in accordance with manufacturer’s installation specifications and all applicable codes and standards
Carryover Provisions:Excess credit may be carried forward five years following the first tax year for which any credit was allowed (must be taken over no more than 6 years altogether).
Start Date:1/1/2006
Expiration Date:1/1/2018
Web Site:
Authority 1:
Date Enacted:
Date Effective:
ORS § 469B.100 et seq.
Authority 2:
Date Enacted:
ORS § 316.116
1997, subsequently amended
Authority 3:
Date Enacted:
Date Effective:
OAR 330-070-0010 to 330-070-0097
1977, subsequently amended

Homeowners and renters who pay Oregon income taxes are eligible for the Residential Energy Tax Credit (RETC) if they purchase qualified heating, effieciency, and renewable energy systems. Third-party owned systems are eligible for the tax credit, though specific requirements detailed in the administrative rules must be met, and third-party owners are limited in the number of credits they may apply for. Credits are eligible for pass-through to another entity who has purchased the credits at present value from the applicant, under specific rules specified by Oregon Department of Energy (ODOE). The amount of the tax credit is based upon the first year energy savings of the eligible alternative energy device. 

Renewable Energy Incentives
Photovoltaic (PV) systems installed on or after January 1, 2015 are eligible for $1.70 per peak watt (W) with a maximum limit of $6,000, up to 50% of the net cost. The net cost is calculated after taking any state incentives. The amount claimed in any one tax year may not exceed $1,500 or the taxpayer's tax liability, whichever is less. Unused credits may be carried forward for five years. As of January 1, 2011, residents that are leasing a solar system are also eligible for the tax credit. Systems installed before January 1, 2015 are also eligible for a credit, with the incentives based on the year of installation (see RETC rules for details). 

Solar space and water heating systems are eligible for a credit of $0.60 per kilowatt-hour (kWh) saved during the first year, up to $1,500.

Fuel cells are eligible for a credit of $3.00 per W of installed capacity, up to 50% of total costs or $6,000 taken over four years. Fuell cell systems must have a minimum rated stack capacity of 0.5 kilowatts (kW) and a maximum rated system capacity of 10 kW.

Spa and pool heating systems are eligible for a tax credit of $0.15 per kWh saved, up to 50% of the cost, with a maximum tax credit of $1,500.

Ground source heat pump installations or upgrades and wood and pellet stoves are eligible for a credit of $0.60 per kWh saved, up to $1,500. For heat pumps, the system COP must be at least 3.3 for all systems except for direct expansion systems, which must have a COP of 3.5.

Wind turbine systems that produce electricity are eligible for a credit equal to the lesser of $2 per kWh produced during the first year or $6,000.  The incentive is based on actual system production.  Wind systems must meet specific requirements for tower safety, height, and wind speed, among other requirements.  

Alternative fuel devices include facilities for mixing, storing, compressing, or dispensing fuels and equipment used to recharge or refuel alternative fuel vehicles. They are eligible for a 25% tax credit, not to exceed $750. Eligible fuels include electricity, natural gas, ethanol, methanol, propane, or other approved fuels.

Premium efficiency biomass combustion devices include wood or pellet stoves, and are eligible for a tax credit based on the efficiency improvements above the RETC minimum efficiency rating. The credit is equal to $0.60 per kWh of energy savings.

Energy Efficiency Incentives
Only technologies recognized as premium efficiency by the Oregon Department of Energy are eligible for the tax credit. The Oregon Department of Energy (ODOE) maintains a list of qualifying technologies. The tax credit is $0.60 per first-year energy savings in kWh up to $1,500.

Heat pump water heaters must the Northern Climate specification established by the Northwest Energy Efficiency Alliance in order to qualify for the tax credit.

Previously, this credit was scheduled to expire in 2012, but HB 3672 (2011) extended the expiration date of the tax credit to January 1, 2018, with the exception of the alternative fuels vehicle portion of the tax credit, which ended as scheduled January 1, 2012. Previously, the RETC offered incentives for appliances such as dishwashers, clothes washers, refrigerators, plus air conditioners and boilers.  However, HB 3672 excluded these technologies as of January 1, 2012. Though eligibility for alternative fuel vehicles expired January 1, 2012, alternative vehicle infrastructure projects, including fueling or charging devices, are eligible as of January 1, 2012. 

ODOE filed revisions to the RETC permanent rules in November 2014, effective January 1, 2015. These rules added open-loop geothermal systems, storage gas water heaters, and direct vent natural gas or propane fireplaces as eligible technologies. They also updated the requirements for duct sealing, wood and pellet stoves, and changed some incentive amounts. More information is available on ODOE's website. 

  General Contact, ODOE
Oregon Department of Energy
625 Marion Street, N.E.
Salem, OR 97301-3737
Phone: (503) 378-4040
Phone 2: (800) 221-8035
Fax: (503) 373-7806
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.