With tax season approaching, homeowners in Washington and Oregon all have the same question in their minds: Are there any electrical rebates or tax credits available?
The short answer is yes, but it also heavily depends on where you live, your utility provider, your income level, and your timing.
The federal Section 25C energy efficiency tax credit expired in 2025 and with the upcoming July 1, 2026, deadline for the Section 45: builder credit, incentives have shifted dramatically toward state and utility-run programs.
Did you know? Oregon homeowners enjoy one of the most generous incentive programs in the country, while Washington residents must navigate a more fragmented landscape.
Federal Tax Credits in 2026: What’s Left?
Section 25C Has Expired
The federal Section 25C Energy Efficient Home Improvement Credit gave homeowners a 30% annual tax credit (capped at $3,200) that helped homeowners offset costs for panel upgrades, heat pumps, EV chargers, and other electrical improvements. This incentive expired in 2025, which leaves homeowners in Oregon and Washington relying primarily on state energy programs, utility-specific rebates and income-based electrification programs.
Section 45L Expires July 1, 2026
The good news is that Section 45L New Energy Efficient Home Credit remains available for builders. This credit applies to new construction projects that meet federal efficiency standards. With this incentive expiring on July 1, 2026, there has developed an urgency among developers and contractors to complete qualifying builds before the deadline hits – making timing a crucial factor for homeowners building new homes.
Oregon Electrical Rebates in 2026
As mentioned earlier, Oregon offers one of the most robust incentive ecosystems in the country, combining state, utility, and income-based programs.
1.Energy Trust of Oregon Solar and Battery Incentives
The Energy Trust of Oregon provides some of the most attractive residential incentives in 2026.
Standard Solar Incentive (2026)
- $2,500 flat per system
Battery Storage Incentive
- $400 per kWh
- Up to $5,000 maximum
When combined, homeowners can access up to $7,500 total in base incentives. Energy Trust has emphasized that Oregon’s Net Energy Metering policy may be the most valuable financial lever available to homeowners today.
Contractor Requirement (Critical Detail)
To qualify for Energy Trust Incentives, installation must be performed by an approved “Trade Ally” contractor. Hiring a non-qualified professional will disqualify the homeowners from the $2,500 solar incentive, a hidden eligibility factor that many homeowners overlook.
2.Oregon Department of Energy (ODOE) Solar Rebates
The ODOE provides homeowners with additional solar incentives, mainly for homeowners outside major utility territories.
Standard Incentive:
- $0.20 per watt DC
- Capped ay $5,000
Low-to-Moderate Income Incentive:
- $1.80 per watt DC
- Up to 60% of net project cost
That’s a 9x multiplier for qualifying households.
In 2026, ODOE received $10 million in additional funding, expanding program availability beyond traditional service territories and increasing access for homeowners in rural areas.
1.Utility-Specific Solar Incentives (Portland Area)
What homeowners might not know is that utility territory matters more than state borders.
Portland General Electric (PGE)
Portland General Electric offers:
- $0.90 per watt
- Maximum: $5,400
Pacific Power
Pacific Power offers:
- $1.00 per watt
- Maximum: $6,000
Battery rebates in these territories can reach $750 per kWh, up to $10,000 per home. Stacking Energy Trust + utility rebates _ ODOE incentives can push total solar and storage packages beyond $12,500.
2. HEAR & HOMES Programs (Launching Spring 2026)
Oregon’s most anticipated programs are the HEAR (Home Electrification and Appliance Rebates) and HOMES (Home Owner Managing Energy Savings) initiatives. As of February of 2026, these programs have received federal approval but still need final rollout materials.
HEAR Program:
- Covers 50-199% or project cost
- Up to $14,000 per household
HOMES Program:
- Covers 50-100% of project cost
- Up to $14,000 per household
These rebates apply to heat pumps, electrical panel upgrades, efficiency improvements and whole-home electrification. As the launch is expected in Spring 2026, the installation window is quite narrow for homeowners hoping to stack incentives before potential funding caps or program changes.
3. Net Energy Metering (The hidden Incentive)
Oregon’s 1:1 Net Energy Metering (NEM) policy credits excess solar production at full retail electricity rates. This is often worth more long-term than the rebate itself. However, homeowners must be aware that there have been discussions about reducing the 1:1 credit rates and homeowners who delay installation may lose this advantage if policies do change.
Washington Electrical Rebates in 2026
Washington’s landscape is significantly different and fragmented, unlike Oregon’s. Washington does not have a centralized state solar rebate program equivalent to ODOE.
According to Oregon Public Broadcasting in January 2026, Washington ranks last in green energy growth, partially due to its lack of unified state incentives. Instead. These incentives depend almost entirely on utility providers.
While Washington’s HEAR and HOMES programs are still being finalized as of February 2026, residents currently lack the broad electrification rebates that Oregon homeowners can expect in Spring 2026.
Here are some incentives they can take advantage of.
1.Clark Public Utilities (Vancouver Area)
Clark Public Utilities offers:
- $1,000 for standard central heat pump replacement
- $1,250 for variable-speed heat pump upgrades
One thing to note is that these are point-of-sale discounts, not tax credits, which makes them easier to access but in limited scope.
2. Puget Sound Energy and Other Utilities
Puget Sound Energy offers:
- Heat pump rebates
- Efficiency incentives
- Occasional EV charger rebates
Why 2026 is Critical
There are several deadlines that converge in 2026, and homeowners need to be aware of these dates when making decisions. Waiting too long could mean missing program funding caps, losing 1:! NEM rates and missing builder tax credits.
- Section 45L builder credit expires July 1, 2026
- Oregon HEAR/Homes launches in Spring 2026
- Net Energy Metering policy is under review
- Utility rates adjusted in September 2025 to improve 2026 rebate ties.
What This Means for Washington Homeowners
We now know that Washington lacks Oregon’s unified rebate ecosystem; however, there are still opportunities for homeowners in Washington.
- Utility heat pump rebates
- Energy efficiency incentives
- Time-of-use rate savings
- Select EV charger promotions
It’s important to verify your specific utility provider before making assumptions about eligibility. Getting professional guidance can help prevent missed rebates.
Importance of Electrical Infrastructure Upgrades
Major electrification projects often require electrical panel upgrades, grounding improvements or service capacity increases, and many homeowners overlook this. Working with a licensed contractor ensures that rebate-eligible improvements are installed safely and up to code.
Examples include:
Installing a heat pump may require additional circuit capacity
Adding EV chargers often requires panel evaluation
Solar and battery systems must integrate safely with home service.
Key Points about Tax Credit Availability
The bottom line is that tax credits vary dramatically by state. Oregon takes the lead with incentive availability in 2026 while Washington remains utility-driven and fragmented. 2026 might be one of the most important years to act because programs are changing and deadlines are approaching, not to mention policies are under review.
In both states, timing matters – just as much as eligibility. So, make sure you verify your utility provider, confirm income qualifications if applicable, and make sure to always consult a licensed electrical contractor to ensure your project qualifies for available rebates.
It looks like in 2026, the biggest savings don’t just come from incentives but instead, from planning ahead.
