Solar adoption in Oregon sees big jump over past decade

Oregon’s solar power production has grown significantly in the last decade, new state data shows.

The Oregon Department of Energy’s recently published solar dashboard shows how solar-generated electricity, both at utility scale and rooftop solar, has grown throughout the state since 1986. The dashboard also shows which counties are producing solar, the increase in residential solar system sizes and the average cost per watt.

“Solar has really taken off in Oregon and one of the main stories that has driven that adoption of solar is the cost reduction,” ODOE senior policy analyst Rob Del Mar said.

Del Mar said the agency has been tracking the cost to install solar in terms of watts since 1999. In that year, the average cost per watt was $16.53. In 2021, the average cost was $3.66.

Del Mar said state policies and incentive programs for homeowners are some reasons why those costs have dropped over time. The price has also come down because utilities have begun to invest in solar. Utilities’ large-scale solar can generate much more power than rooftop solar and can be as cheap as a dollar per watt.

The recently released state data shows utility scale projects in particular have especially grown since 2016.

“As more and more people bought solar and state policy supported this market transformation, then the volume went up and we got more and more solar installers in Oregon,” Del Mar said.

As the climate crisis continues, more and more Oregonians are switching from homes powered by fossil fuels to solar-powered ones to reduce greenhouse gas emissions that contribute to climate change. State laws also require electric utilities to reduce their greenhouse gas emissions and provide 100% renewable energy by 2040. According to ODOE, solar should continue to grow as prices decrease and more technology is developed to store renewable energy.

Del Mar said every year the state sees thousands of households installing solar panels.

“What makes them special is that when you put it on a home or business rooftop, it basically means that that resident or that business is able to sort of take control of some of their own energy future,” he said.

About 22,000 residential rooftop solar installations are under net-metered solar projects, Del Mar said. That means the solar installed on the homeowner’s roof goes directly to power the home and the excess energy produced goes out to the power grid.

As more people are making the switch to solar panel systems and are electrifying their homes, Del Mar said those solar systems are also increasing in size.

According to the state data, in 1999 the average residential solar system had fewer than 10 panels and generated less than 1 kilowatt. Del Mar said that might’ve been enough to power your home during that time period, but he said as more people begin to install more electric appliances or vehicle chargers, the need for a larger-capacity solar system increases.

In 2021, the average residential solar system was about 25 panels, which could generate an average of 8.78 kilowatts.

Despite the increase, solar only accounted for 1.67% of Oregon’s electricity generation in 2020. Hydropower, natural gas and coal are the leading resources for generating electricity in the state, according to the state data.

Del Mar said new technologies, like battery storage for renewable energy, could pave the way for more people to adopt solar.

Currently, lithium-ion batteries dominate the renewable energy storage market, but one Oregon company is focused on producing a more environmentally friendly, long-duration battery that utilities could use to store excess renewable energy. Some early adopters are already installing batteries in their homes for backup storage, Del Mar said, which could follow the same trends when solar was first introduced: high prices now but costs could drop in the future.

Some households also are installing batteries as extreme weather events like wildfires cause power outages to homes, sometimes for more than a week. Del Mar said people are beginning to see the value battery storage has not only for backup power, but energy resilience.

“We see a lot of households that want to chip in and do their part, generate clean energy and I think we’re going to continue to see that be a major driver,” he said.

ODOE offers incentive programs for homeowners to install both solar and battery storage systems, with higher rebate amounts for qualified low-income households.

The agency is also seeking funds through the federal government’s Solar For All grant that would support solar panel and battery installation in these communities.