The nonprofit Energy Trust of Oregon is encouraging residents to invest in heating and cooling pumps, solar panels, before federal money goes away

By Alex Baumhardt, Oregon Capital Chronicle

Oregonians have just more than a month to take advantage of federal tax credits meant to reduce by thousands of dollars the costs of buying and installing new energy efficient heating and cooling pumps, insulation, windows and solar panels.

Paired with incentives from the nonprofit, state-partnered Energy Trust of Oregon, the savings can cover half to nearly all costs, depending on the purchase. People who have made home energy efficiency upgrades this year, or who can complete upgrades by Dec. 31, can claim the federal tax credits.

Most of the federal credits passed in 2022 as part of the Inflation Reduction Act enacted under former President Joe Biden and were meant to expire in 2032, giving Americans a decade to take advantage of subsidies meant to spur investments in home weatherizing and clean energy upgrades. But congressional Republicans phased the credits out early in the tax and spending law they passed this summer.

Julianne Thacher, a spokesperson for the Energy Trust, said the organization wants to encourage Oregonians to take advantage of those credits now and to remind them that when they go away, there will still be state-level incentives they should not overlook.

“Energy Trust incentives will be here after the tax credits. We won’t be affected. We were here before the tax credits, and had very successful programs with folks installing energy-efficient equipment, so we expect that will continue,” Thacher said.

The Oregon Department of Energy also offers solar and heat pump cash incentives and grants that can be used towards the costs of equipment and installation after federal, Energy Trust and any other incentives are applied.

Federal tax credits expiring at end of 2025 and Energy Trust incentives

The Oregon Energy Trust was established by the state Public Utilities Commission in 2002. Although it’s an independent nonprofit, the commission oversees the trust’s performance measures, budget and planning.

Ratepayers of five of Oregon’s six investor-owned gas and electric utilities — all except Idaho Power — fund the trust. As part of utilities’ energy load planning, they send a percentage of ratepayer dollars to the trust, which is tasked with ensuring investment in activities that lower overall load demand and help meet state climate targets.

Part of that is standing up cash incentive programs to help businesses and everyday Oregonians afford equipment and infrastructure to lower their own energy consumption. The trust offers higher incentives for families with lower incomes and collaborates with 60 community organizations statewide.

Energy Trust incentives are available to all customers of Portland General Electric, or PGE, Pacific Power, NW Natural, Cascade Natural Gas and Avista. Customers can go to a store and choose equipment prequalified for Energy Trust incentives, and that will deduct the credit from receipt at the point of purchase.

Customers can also work with contractors who have agreements with Energy Trust, and who will purchase and install the equipment and deduct the tax credits from the bill. Customers can also apply online at the Energy Trust’s website for specific credits after purchase, and receive a refund for the credit amount in the mail.

The mix of state, federal and private and nonprofit subsidies for solar panels have led to major growth in residential solar in the last decade, and today about 25,000 homeowners in Oregon are generating solar energy, according to Energy Trust. This has ramped up as the federal credits are set to expire.

“The solar contractors we work with are very busy right now, and we’ve actually gone ahead and launched our new incentives for 2026 early, because folks who are looking to do a solar project starting now, they’re highly unlikely to complete that by year’s end. That’ll be a 2026 project.”

Focusing on efficiency in businesses and homes in Oregon, and setting climate targets that incorporate more solar, heat and cooling pumps and building upgrades, has made a big dent in Oregon’s gas and electricity use. Demand for gas would today be 9% higher and demand for electricity 16% higher if policies had not been enacted over the last two decades, the Trust found.

“Energy efficiency is the most effective, affordable way to meet climate goals, while also offering a ton of other benefits for customers and communities,” Thacher said.

Alex Baumhardt has been a national radio producer focusing on education for American Public Media since 2017. She has reported from the Arctic to the Antarctic for national and international media, and from Minnesota and Oregon for The Washington Post. This story first appeared in the Oregon Capital Chronicle.