Solar resource
Your solar production in Portland
4.04 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Austin, TX. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Portland General Electric (PGE) electricity rate
$0.118/kWh residential
- Utility
- Portland General Electric (PGE)
- Residential rate
- $0.118/kWh (blended)
Portland General Electric uses tiered pricing: Tier 1 (up to 1,000 kWh/month in winter) is lower than Tier 2. The blended $0.118/kWh represents a typical residential customer's effective rate. PGE is required by Oregon law (ORS 757.300) to offer net metering at the full retail rate — excess solar generation is credited at $0.118/kWh monthly. Oregon's net metering policy is one of the strongest in the Pacific Northwest, making self-consumption and grid export both financially valuable. Pacific Power (PacifiCorp) serves eastern portions of Oregon including the Portland metro fringe — check your utility before installation.
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Incentives
Available solar incentives in Portland, OR
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| Energy Trust of Oregon Solar Rebate | Rebate | Up to $0.20/W — approximately $1,200 for a 6 kW system | Utility |
| Oregon Net Metering (Retail Rate) | Net Metering | Full retail rate credit for exported solar energy | Utility |
| Oregon Solar Property Tax Exemption | Exemption | 100% of added home value from solar system | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17700
- Federal ITC (30%)
- −$5310
- Net system cost
- $12,390
- Installed cost per watt
- $2.95/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — Pacific Northwest/Oregon median installed cost for systems 3–10 kW
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $850
- Simple payback period
- 14.6 years
- 25-year net savings
- $8860
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Portland
- Your panels capture sunlight Solar panels convert sunlight into DC electricity. Portland averages 4.04 peak sun hours per day annually — lower than sunnier cities, but highly seasonal. Portland's long summer days (June–August) deliver 6–7 kWh/m²/day, comparable to Las Vegas, while winter months are genuinely low-production. A system sized to summer production builds substantial bill credits that carry forward to offset winter bills under Oregon's net metering rules.
- An inverter converts DC to AC A solar inverter converts the DC power from your panels into the AC electricity your home uses. Modern string inverters and microinverters achieve 96–99% conversion efficiency. Portland's cool, mild temperatures are ideal for solar panel performance — photovoltaic panels are more efficient in cool weather. Even on cloudy days, panels produce meaningful output from diffuse light, though at reduced capacity.
- You use solar power instead of buying from PGE Every kilowatt-hour (kWh) your system produces during daylight reduces what you buy from Portland General Electric at $0.118/kWh. A 6 kW system produces about 7,200 kWh/year in Portland — heavily concentrated in April–September. Portland's moderate climate means lower annual energy consumption than Texas or Arizona homes, so a 6 kW system can cover a substantial share of a typical PGE customer's annual usage.
- Summer surplus builds credits for winter bills From May through September, your panels will likely produce more than your home uses — excess electricity flows back to PGE's grid. Under Oregon's retail net metering law (ORS 757.300), PGE credits this exported energy at the full retail rate of $0.118/kWh, and these credits carry forward month to month indefinitely. Smart sizing means your summer surplus bank offsets the low-production December–February period when Portland receives under 2 kWh/m²/day.
- You claim federal and Oregon incentives In the tax year your system is installed, you claim the 30% federal tax credit on the full installed cost — $5,310 on a $17,700 system. The Energy Trust of Oregon provides an additional cash rebate of approximately $1,200 for a 6 kW system, which must be reserved before installation begins. Oregon's property tax exemption (ORS §307.175) prevents your home's increased value from adding to your property tax bill.
- Your savings compound as PGE rates rise Portland's longer payback period (~14–15 years) reflects honest solar economics in a cloudy climate — but the 25-year outlook is still positive. As PGE rates rise (historically ~2.5%/year), every additional kWh your system produces is worth more. Oregon's indefinite net metering credits and no annual true-up mean you never lose accumulated surplus. Over 25 years, a 6 kW Portland system nets roughly $8,900 after repaying the installation cost.
FAQ
Common solar savings questions for Portland, OR
Is solar worth it in Portland, OR given the clouds and rain?
Yes, but with realistic expectations. Portland averages 4.04 peak sun hours per day, which is lower than sunnier cities — but not as bad as many assume. Germany, which gets less sun than Portland, is a world leader in solar adoption. Portland's advantage is strong net metering (Oregon ORS 757.300 requires full retail-rate credits that carry forward indefinitely), the Energy Trust of Oregon rebate, mild temperatures that benefit panel efficiency, and PGE's $0.118/kWh rate that makes every offset kWh valuable. The payback period is longer (~14–15 years) than in Phoenix or Dallas, but the 25-year net savings are still positive.
What solar incentives are available in Portland, OR?
Portland-area solar customers can stack several incentives: (1) the 30% federal Investment Tax Credit (ITC) through 2032; (2) the Energy Trust of Oregon cash rebate (~$0.20/W, approximately $1,200 for a 6 kW system — must be reserved before installation); (3) Oregon's full retail-rate net metering with indefinite credit carryforward (ORS 757.300); and (4) Oregon's solar property tax exemption (ORS §307.175) that prevents your home's increased value from raising your property taxes.
What is Portland General Electric's net metering policy?
Oregon law (ORS 757.300) requires Portland General Electric to offer net metering at the full retail electricity rate. Monthly surplus credits carry forward indefinitely — there is no annual true-up period where unused credits are forfeited. This is one of the strongest net metering policies in the country, and it's a key reason Portland solar works financially despite the cloudy winters. It allows a well-sized system to build a credit bank from May–September that offsets winter bills.
What is the Energy Trust of Oregon solar rebate?
The Energy Trust of Oregon (ETO) is a nonprofit that administers energy efficiency and renewable energy programs for PGE and Pacific Power customers. For solar, ETO provides cash incentives of approximately $0.20/W for residential systems — about $1,200 for a 6 kW system. The incentive must be reserved before installation by working with an Energy Trust trade ally contractor. Incentive rates change periodically based on program funding; check energytrust.org for current rates and availability.
How much does a solar system cost in Portland?
A 6 kW system in Portland costs approximately $17,700 before incentives ($2.95/watt installed, per Lawrence Berkeley Lab 2024 Pacific Northwest data). After the 30% federal ITC ($5,310), the net cost is about $12,390. If you also receive the Energy Trust of Oregon rebate (~$1,200 for a 6 kW system), the effective cost drops to approximately $11,190. Prices vary by installer, equipment tier, and roof complexity.
How does Portland solar production compare to other cities?
Portland produces significantly less solar energy than sunnier cities: a 6 kW system produces approximately 7,200 kWh/year in Portland vs. 9,000 kWh in Dallas, 10,200 kWh in Phoenix. However, Portland's strong net metering policy, Energy Trust rebates, and Oregon's property tax exemption partially offset the lower production. Portland's cool climate also keeps panels operating efficiently. The honest comparison: Dallas solar pays back in ~10–11 years; Portland in ~14–15 years — both generate positive long-term returns.
How many solar panels do I need for my Portland home?
A typical Portland home using 700–900 kWh/month (lower than Texas cities due to milder climate) generally needs a 5–8 kW system. A 6 kW system (about 14–16 panels at 390–430 W each) covers a large share of annual consumption through net metering credits. Because Portland's production is highly seasonal, sizing for summer surplus that carries forward is often more economical than trying to match month-by-month. Use the calculator above to estimate based on your PGE bill.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://openei.org/apps/USURDB/
- https://www.eia.gov/electricity/data/browser/
- https://www.portlandgeneral.com/residential/rates
- https://www.energytrust.org/solar
- https://www.oregonlegislature.gov/bills_laws/ors/ors757.html
- https://www.oregonlaws.org/ors/307.175
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-13.