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Solar Water Heating - Commercial Incentives

Incentives for businesses installing solar water heating systems for domestic or process hot water

Incentive amounts are subject to change. Each incentive program may include minimum eligibility requirements. Please use the links provided to visit to find current incentive levels offered by each organization, and to learn how to be eligible for their incentives.

1) Federal tax benefits:

Commercial investment tax credit

30% of total system cost, no cap
IRS form 3468 - Investment Credit
Business claims credit on tax return, does not need to "apply" for credit
After December 31, 2007, tax credit drops to 10%

Accelerated depreciation

5 year depreciation schedule for investment
Modified Accelerated Cost Recovery System
Cost basis is reduced by half the federal investment tax credit

For more information, request a free copy of the Solar Energy Industries Association's Guide to Federal Tax Incentives for Solar Energy.

2) Oregon state tax credit:

Business Energy Tax Credit

50% of eligible cost
Claimed over 5 years (10%, 10%, 10%, 10%, 10%), unless project cost is under $20,000
Eligible cost may be capped by Maximum Eligible Cost calculation
Must apply before purchasing equipment

3) Incentives for utility customers:

In most cases, systems must be installed by a contractor, and must be pre-approved for incentives before installation begins. Your contractor should be familiar with these programs and should help you with the application process.

Pacific Power, offered by Energy Trust of Oregon

$0.40/kWh
Based on calculated first year energy savings (using F-Chart, RETScreen or TRNSYS)
Must use electric water heat
Incentive is paid to business after passing Energy Trust inspection

Portland General Electric (PGE), offered by Energy Trust of Oregon

$0.40/kWh
Based on calculated first year energy savings (using F-Chart, RETScreen or TRNSYS)
Must use electric water heat
Incentive is paid to business after passing Energy Trust inspection

NW Natural, offered by Energy Trust of Oregon

$6.00/therm

Based on calculated first year energy savings (using F-Chart, RETScreen or TRNSYS)

Must use gas water heat

Incentive is paid to business after passing Energy Trust inspection

Cascade Natural Gas, offered by Energy Trust of Oregon