Industry seeks refundable state tax credit for home solar and battery storage to stabilize incentives

The Oregon Solar and Storage Industries Association (OSEA) and installers testified March 20 in support of House Bill 3,747, a bill to create a refundable state income tax credit for residential solar photovoltaic systems and battery energy storage systems for tax years beginning Jan. 1, 2026 through Jan. 1, 2032.

Angela Crowley Cook, executive director of OSEA, told the committee that previous state incentives were effective but that funding has been unstable. She described the proposed refundable credit as a predictable, long-term incentive available to low- and moderate-income homeowners because the credit would be refundable even if a household has little or no tax liability.

Tristan Kinsey, founder of Earthlight Technologies, a Silverton-based solar installer, said the industry and customers need predictable incentives to plan projects and maintain workforce growth. "Last year when the state solar program ran out of money, we had 12 projects we had to cancel because they couldn't afford to do the solar without the projects," Kinsey said, describing the business impacts of funding gaps.

Nut graf: Proponents asked the committee to consider the refundable credit to stabilize demand and support local solar jobs; the draft sets credit amounts at $1,000 for solar and $2,500 for storage to incentivize resilience.

OSEA representatives noted concerns about future federal tax-credit changes and said a stable state credit would support small and medium-sized local businesses that install solar and storage in Oregon. The committee closed the hearing after testimony; no committee vote was recorded on March 20.

Ending: The bill proceeds through committee consideration and may be amended; sponsors framed the credit as a way to preserve local solar employment and increase residential storage adoption.