Is Solar Worth It In Portland Oregon?

It is no secret that electricity rates continue to climb. As the cost of powering your home increases by the year, you might be looking for alternative sources. One of the cleanest and most affordable types of energy out there is solar power. If you happen to live in Oregon, Portland specifically, then solar power is something to consider.

You might be wondering whether or not installing a solar array in Portland, Oregon, is worth it. This is what we are here to help you figure out today.

We will be analyzing the key factors that will determine if solar in Oregon is worth it. The main goal is to help you determine what the payback period for your solar system will be. After all the figures have been added up, how long will it take to pay for themselves?

Portland Residential Energy Usage and Expenditures

We first need to figure out how much power Portlanders use per month. Then, we also need to determine how much this costs them.

The average amount of electricity that a resident of Portland, Oregon, uses per month is 957 kilowatt-hours per month. For the record, this is nearly 6% higher than the national average of 903 kilowatt-hours per month.

Next, we need to know how much that electricity costs per month. There are a few interesting statistics to take note of here. First, the average residential electricity rate in Portland is 10.72 cents per kilowatt-hour. This is around 9.4% higher than the Oregon state average, which is 9.8 cents per kilowatt-hour.

However, it is also 9.76% less than the national average of 11.88 cents. Therefore, people in Portland, Oregon, pay slightly less for their electricity than the rest of the country.

The other important statistic is that Oregonians pay on average $94 per month for their electricity. This is over 12% less than the national average of $107 per month. So, Portlanders use 957-kilowatt hours per month, which costs $94. These are two important figures to remember.

The Average Cost of Solar Panels in Portland, Oregon (Before Incentives)

To determine if solar in Portland is worth it, we need to determine how much an average installation costs. First, the average cost for residential solar panels in Portland is $2.68 per watt, lower than the national average of roughly $3 per watt.

Keep in mind that this is the average rate for a 6-kilowatt solar panel array. However, the average solar panel array size that most homes install is 5 kilowatts.

In addition, bulk pricing generally applies to solar panels. In other words, the larger the system, the lower the average cost per watt. For example, for a 5-kilowatt system, the average cost per watt is $2.80. On the other hand, for a 10-kilowatt system, the average price is $2.56 per watt.

Below is a breakdown of how much you can expect to pay for various solar system sizes in Portland. Remember that the figures below do not account for any of the state or federal credits or incentives. We will factor those into the equation in the following section.

4kW – $2.93 per watt – $11,720
5kW – $2.80 per watt – $14,000
6kW – $2.68 per watt – $16,080
7kW – $2.65 per watt – $18,550
8kW – $2.67 per watt – $21,360
9kW – $2.59 per watt – $23,310
10kW – $2.56 per watt – $25,600

Federal and State Solar Incentives in Oregon

Governments at various levels are doing their best to provide people with incentives to switch to solar energy. For instance, the ITC, or investment tax credit, also known as the federal solar tax credit, currently sits at 26%.

That 26% can be subtracted from the initial cost of the solar system. In other words, you can save just for installing a solar array, to begin with. So what do the solar costs in Oregon look like after this federal rebate is factored into the equation?

4kW – $8,660
5kW – $10,360
6kW – $11,879
7kW – $13,710
8kW – $15,814
9kW – $17,243
10kW – $18,945

However, the savings don’t end there because Oregon also has an incentive system in place. Unless you are a low-income household in Oregon, you will get 20 cents per watt installed (up to $5,000). So, let’s factor this 20 cent per watt state rebate into the equation for the final cost.

4kW – $7,860
5kW – $9,360
6kW – $10,679
7kW – $12,310
8kW – $14,214
9kW – $15,443
10kW – $16,945

Remember, most people install 5-kilowatt systems in Oregon, which will cost an average of $9,360.

Portland and Peak Sunlight Hours: How Much Energy do Solar Panels Produce?

Next, you need to know how much power the solar panels you installed can produce. An important statistic to know is that a 5-kilowatt system can produce roughly 20 kilowatt-hours per day. A 10-kilowatt system should produce about twice that amount.

However, this equation is all about peak sunlight. Therefore, when determining power output for solar panels, a standard of 4 peak sunlight hours is used.

Portland, Oregon, gets slightly more than that per day, roughly 4.3 hours of peak sunlight. That is about 7% more than the standard calculation. Therefore, with 4.3 hours of peak sunlight, a 5kW system in Oregon should produce 21.4 kilowatts per day. This equates to roughly 642 kilowatts per month.

As you can tell, a 5-kilowatt system will not fully meet your energy needs in Portland. Portlanders use 957 kilowatts per month. To account for this, you would need an 8-kilowatt system. Based on peak sunlight hours, an 8-kilowatt system would produce 1,027 kilowatt-hours per month. This would fully meet your electricity needs, and then some.

Oregon Solar Panel Installation Costs vs. Energy Cost Savings: The Payback Period

Now we have all of the figures that we need to determine the average payback period. The most common size installed is 5 kilowatts, so this is what our calculation will be based on. So, there are a few important figures to keep in mind here when doing this calculation.

Payback Period for an 8kW Solar System

Residents of Portland use an average of 957 kilowatt-hours per month.
The average monthly power bill in Oregon is $94.
The cost of a 5kW system in Oregon is $9,360.
That 5kW system can produce 642 kilowatts per month.

These figures mean that a 5kW system can account for 67% of a Portlander’s monthly energy requirements. This means that you will only pay 33% of your usual energy bill.

This is (33% of $94) $31.02, or monthly savings of $62.98. This equates to annual savings of $755.76. Based on yearly savings and the initial cost, the payback period for a 5kW system is 12.38 years.

Payback Period for an 8kW Solar System

Remember that a Portlander would need an 8kW system to account for 100% of their energy needs. So, let’s calculate the payback period for this.

The cost of an 8kW system in Portland is $14,214. As 100% of your energy needs are met, this would account for $94 saved per month. This equates to $1,128 per year. The payback period for an 8kW solar system would therefore be 12.6 years.