Are There Incentives for Buying an Energy-Efficient or Solar-Powered Home?

With the rising cost of utilities and increased environmental awareness, more homebuyers are looking toward energy-efficient and solar-powered homes. But beyond the eco-friendly appeal, did you know there are tangible financial incentives for making this kind of smart investment?

Here are some of the top benefits and incentives available to buyers of energy-efficient or solar-powered homes in 2025:

1. Federal Tax Credits One of the most significant benefits is the Federal Investment Tax Credit (ITC). This allows homeowners to deduct 30% of the cost of a solar panel system from their federal taxes. It applies to both primary residences and second homes, and is available through at least 2032.

Example: If you install a $20,000 solar system, you could get $6,000 back in tax credits.

2. State and Local Rebates In states like Oregon, there are additional rebates and credits offered by local governments and utility companies.

• Energy Trust of Oregon offers cash incentives for improvements such as energy-efficient appliances, insulation, and duct sealing.

• Solar Within Reach programs are designed to help moderate-income households gain access to solar energy.

• Net metering allows you to sell excess solar energy back to the grid, reducing your monthly electric bill.

3. Energy Efficient Mortgages (EEMs) With an EEM, you can borrow more to purchase a home that’s energy-efficient or to finance energy-saving improvements.

Benefits include:

• Better loan terms.

• Ability to stretch your budget based on estimated energy savings.

• Roll-in upgrade costs during a home purchase or refinance.

4. Reduced Utility Costs One of the most immediate perks of buying an energy-efficient home is the lower monthly utility bill. From high-efficiency HVAC systems to upgraded insulation and double-pane windows, these homes are designed to cut consumption.

Over time, this can result in thousands of dollars saved.

5. Higher Resale Value Energy-efficient and solar-equipped homes tend to:

• Sell faster.

• Sell for more money.

Many buyers prioritize energy savings and sustainable living, making your investment more attractive on the resale market.

Investing in a solar-powered or energy-efficient home is more than just a feel-good decision—it can offer real financial benefits now and in the future. With local and federal incentives, better mortgage options, and long-term savings, going green is a smart move for your wallet as well as the planet.

Thinking about buying an energy-efficient or solar home in Central Oregon? Let’s connect. I’d be happy to show you options and help you take advantage of every available incentive.

FAQs

Q1: Are there tax incentives for buying a solar-powered home?

A: Yes! The federal government offers the Residential Clean Energy Credit, which allows eligible homeowners to deduct a percentage of the cost of solar installations from their federal taxes. Many states, including Oregon, also offer local rebates or credits.

Q2: Will I save money on utility bills with an energy-efficient or solar home?

A: Absolutely. These homes are designed to use less energy, which means lower monthly utility bills over time. Solar-powered homes, in particular, can significantly reduce or even eliminate electricity bills.

Q3: Do energy-efficient homes have a higher resale value?

A: In many markets, including Bend and other parts of Oregon, buyers are willing to pay more for energy-efficient features due to the long-term savings and environmental impact.

Q4: What qualifies a home as "energy-efficient"?

A: Look for ENERGY STAR-rated appliances, high-efficiency HVAC systems, upgraded insulation, double/triple-pane windows, and solar panels. Homes certified under programs like LEED or Earth Advantage are also considered highly energy-efficient.

Q5: Can I get a better mortgage rate for buying a green home?

A: Some lenders offer green mortgage programs with better rates or higher borrowing limits for buyers purchasing energy-efficient homes or making green upgrades.

Q6: Is it worth installing solar panels if I plan to sell soon?

A: It depends on your timeline and market. In many cases, solar panels boost home value and can attract eco-conscious buyers. However, it's worth reviewing ROI and how long it will take to recoup the initial investment.