The residential 45D 30% tax credit will no longer be available after December 31, 2025.

For commercial federal tax credits, many curtailments were created by the oil industry’s paid politicians to now sunset the 30% federal tax credit for commercial entities. This program, which has greatly supported renewable energy adoption across the United States, will now go away on December 31, 2027.

To secure the solar Investment Tax Credit (ITC) for a 2026 project at 30%, you must begin construction by July 4, 2026, or place it in service by December 31, 2027 while utilizing equipment that best navigates the new Foreign Entity of Concern (FEOC) rules for the major components (inverters, solar modules and racking) and ensuring robust documentation for compliance. Early engagement with experienced tax counsel and our office team is critical for meeting these tight deadlines in order to secure the maximum tax credit amount available to you.

The credit amount will be available to you when you file your tax return for the year the installation is completed. If you cannot use the full tax credit that year, it can carry forward to subsequent years. We recommend contacting your tax professional to discuss how the FITC can impact your projected tax situation for a specific year.

Learn more about the federal rebate for homeowners and for businesses.

PGE offers the following incentives, provided by the Energy Trust of Oregon. (Energy Design is a trade ally of the Energy Trust of Oregon, and as an approved contracting partner, we can help you navigate the regulations and application process to reserve a solar or solar-and-storage incentive in PGE territory.)

Residential projects:

• Incentive payment of $800 for any residential solar installation.
• The Solar Within Reach program, which is an income-qualifying rebate for residential solar systems. It depends on the size of the system, paying 90 cents per watt, up to $5,400. (A typical residential system in Oregon is around 5,000 watts.)
• A payment of $350/kWh, up to $4,200, for residential battery system installations.
• An income-qualifying battery storage incentive program, which pays $850/kWh, up to $10,200.

Business projects:

• Solar for Businesses pays 11 cents per watt, up to $11,000.

Other organizations:

• Solar for tribes pays $1 per watt, up to $50,000,
• Solar for affordable housing projects, pays 70 cents per watt, up to $42,000.
• Solar for qualifying non-profit organizations pays 50 cents per watt, up to $30,000.
• Solar Development Assistance up to $2,500

Learn more about PGE’s solar, battery, and income qualifying incentives.

Updated as of 7/28/2025.

If you are considering a solar project for a business, an accelerated depreciation schedule (MACRS) may be applied to your solar electric system purchase. Energy Design will work with your accountant to articulate the distribution of MACRS and the impact it will have on your tax situation.