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Oregon solar industry warns of 'cliff' after federal tax‑credit changes and EPA grant termination
Summary
Business owners, industry groups and state agencies told the Senate committee that recent federal actions (HR1) accelerated sunsets for residential and commercial solar tax credits and led to an EPA termination letter for the Solar for All grant, creating immediate market disruption, supply‑chain strain and potential job losses.
A panel of industry representatives and state officials told the Senate Interim Committee on Energy and Environment that recent federal budget and tax changes are producing abrupt impacts on Oregon’s rooftop solar market.
John Greiser, founder of Elemental Energy in Portland, said his firm employs 57 Oregonians and is facing a sudden market 'cliff' after the federal elimination of the residential solar and battery storage tax credit. Greiser said the industry typically sees a rush of projects before a credit deadline followed by a dramatic slowdown that can take years to recover; he urged state action to provide a 'soft landing' such as replenishing Oregon’s solar and storage rebate program.
Angela Crowley Cook, executive director of the Oregon Solar and Storage Industries Association (OSEA), described provisions in HR1 that accelerate the end of both residential and commercial tax credits and introduce new 'foreign entity of concern' (FIAC) rules for materials procurement. She said some leased residential systems retain credits through 2027 but most homeowners will lose the credit after Dec. 31, creating a crush of installation demand now and layoffs next year unless state or local programs step in. OSEA estimated potential job losses in the sector on the order of 1,500 statewide if no mitigation occurs.
Rob Delmar and other Oregon Department of Energy staff reviewed the specifics: the residential investment tax credit sunset was accelerated to December (requiring completed systems by year‑end); commercial projects have earlier safe‑harbor and construction deadlines; and the Solar for All grant (about $86,600,000 awarded to Oregon) has been the subject of a federal termination letter. Oregon agencies have contested the termination and are pursuing legal/administrative responses while urging state readiness to deliver replacement incentives or permit‑processing capacity.
Energy Trust of Oregon staff described how its incentive programs and partnerships can partially offset federal changes for customers within Portland General Electric and Pacific Power territories, but emphasized gaps in rural areas and for customers not served by those utilities. Panelists urged the legislature and state agencies to consider targeted rebates, permitting streamlining, staffing increases at utilities to handle interconnection surges, and other near‑term supports.
Committee members expressed concern about affordability and workforce impacts and asked about policy options such as on‑bill financing and other long‑term approaches; panelists said such mechanisms are feasible but require capital and legislative direction.
The committee requested follow‑up materials, including links to the annual spending report and details on the Solar for All grant contestation.
