OAR 150-307-0210
Property Tax Status of Alternative Energy Systems




“Alternative energy system” means a solar, geothermal, wind, water, fuel cell or methane gas energy system used for the purpose of heating, cooling or generating electricity.


Solar alternative energy systems use the sun and may include but are not limited to:
Solar electric or photovoltaic (PV) systems that consist of solar electric panels (photovoltaic cells) that convert sunlight directly into electricity and may include connective wiring, solar electric modules, inverter, mounting system, disconnection equipment, net-metering system, and storage batteries,
Solar heating or cooling systems that consist of active, passive, and thermal systems used for water, or space heating or cooling and may include south facing windows, trombe walls, extra thick concrete/stone floors designed for the absorption of heat, thermal chimneys, solar panels or collectors which directly heat coils of water on the roof or outside walls, extra hot water storage tanks, connecting piping, sensors, valves, pumps, heat exchangers, and controls.


Geothermal alternative energy systems use heat extracted from the earth and may include but are not limited to geothermal heat pumps (GHPs), which can be used for both heating and cooling of buildings and hot water needs.
Ground source geothermal heat pumps consist of buried loops or coils of tubing used to exchange heat.
Water source geothermal heat pumps consist of loops submerged in a lake, pond or well.


Wind alternative energy systems produce mechanical or electrical power or energy. Wind turbines typically consist of a propeller driven generator attached to a building or tower used to drive a direct current generator which is generally tied to a battery storage system and used to power household or business needs. The system may be connected to a net-metering system or be completely off-grid. These systems may include:
Small stand-alone wind turbines.
Groups of wind turbines.


Water alternative energy systems or hydropower systems are used to generate electricity. These systems may include but are not limited to micro hydro systems which are small-scale facilities providing electricity to power homes, small farms, and businesses. Micro hydro systems typically consist of a small water drive wheel or turbine which is connected to an electric generator and the output is connected to the user by power wiring. These systems may include a storage battery system and net-metering system.


Fuel cell alternative energy systems produce electricity electrochemically and non-reversibly, using hydrogen-rich fuel and oxygen, producing an electric current, water, and thermal energy. These systems may include but are not limited to fuel cell systems using reformed fossil fuels which also produce carbon dioxide.


Methane gas alternative energy systems are typically gas collection systems used to fuel an electric generator and may also include methane digester systems. These systems may include but are not limited to:
Methane collection systems installed at closed or partially closed land fills and used to fuel electric generator systems.
Methane digester systems owned by and installed at dairy farms and used to generate power.


“Onsite” means a single, operationally integrated complex of property or properties composed of a single parcel of land and improvements thereon or a group of adjacent parcels and improvements thereon.


Alternative energy systems qualify for exemption only if the system is a net metering facility, as defined in ORS 757.300 (Net metering facility allowed to connect to public utility), or is primarily designed to offset onsite electricity use.
Example 1: A company installs solar panels to generate electricity. The solar energy system is installed as a net metering facility. Therefore, the solar energy system qualifies for the property tax exemption.
Example 2: A utility owns a large wind generating farm. The system is not a net metering facility nor is it designed to offset onsite electricity use. Therefore, the wind energy system does not qualify for the property tax exemption.
Example 3: A methane collection system installed at a closed portion of an otherwise active landfill is used to fuel an electric generating facility to produce electricity used to offset power use at the active portion of the landfill. The system qualifies for the property tax exemption.
Example 4: A methane digester system installed at a dairy farm is used to fuel an electric generator system to generate power for the dairy farm’s operations. This qualifies for exemption.
Example 5: An industrial facility installs a methane collection system where methane gas is compressed and used as a fuel source to generate electricity for the facility’s operations. This qualifies for exemption.


Alternative energy systems that provide heating, cooling or that generate electrical energy for personal consumption qualify for the property tax exemption only to the extent that they are primarily designed to offset onsite electricity use or are net metering facilities.


Alternative energy system devices and components are exempt to the extent that they add real market value (RMV) to the property. Additional value accruing to property to which a qualified alternative energy system is installed due to the existence of such a system is exempt.


Examples of property that typically do not qualify for the exemption include but are not limited to porches, sunrooms, solariums, and greenhouses.

Source: Rule 150-307-0210 — Property Tax Status of Alternative Energy Systems, https://secure.­sos.­state.­or.­us/oard/view.­action?ruleNumber=150-307-0210.

Real Property
Personal Property Definitions
Personal Property
Taxation of Property Associated with Mining Claims on Federal Land
Public Property Leased or Rented by Taxable Owner
Property Held Under Lease
Property Used for Public Park or Recreation
Guidelines for Exempt Port Property Subject to In Lieu Tax
Request For Computation of In Lieu Tax Payment
Strategic Investment Program
Review Required in Determining Exempt Status of Property for Charitable Institutions
Literary Institution Defined
Minimum Criteria Required in Determining Exempt Status of Property for Religious Organizations
Parsonage and Caretaker Residence Exemption Guidelines
Definition of Schools and Academies
Senior Center Property Exemption
Burial Grounds, Cemeteries, Crematories
Application Process for Property Tax Exemption
Property of Exempt Entities Leased to Other Exempt Entities
Property Tax Status of Alternative Energy Systems
Qualifications for Exemption of Indian Properties
Valuation of Summer Home Properties
Exception To Taxable Personal Property
Water Association Qualifications
Water Association Exemption Under ORS 307.210 Is Assessor’s Responsibility
Jurisdiction Over Assessment of Telephonic Companies
Qualifications for Exemption of Mutual or Cooperative Telephone Associations
Jurisdiction over Assessment of Non-public Telephonic Systems
Qualifications for Exemption for Privately Owned Telephone Systems
Application for Exemption Under ORS 307.220 or 307.230
Definition of Elderly
Exemption Claim Procedures
Defining "Surviving Spouse” of a Veteran
Veteran’s Exemption for Surviving Spouse
Physician Certification of Disability for Exemption
Property to Which Veteran’s Exemption Applies
Transfer of Veteran’s Exemption to a Different Property Requires Refiling
Veterans Property Held in Trust
Oregon Active Military Service Member’s Exemption — Eligibility
Oregon Active Military Service Member’s Exemption Claimed By Lawful Occupant
Agricultural Land Devoted to Agricultural Purposes as Real Property
Exemption of Buildings, Structures and Machinery or Equipment during Construction
War Veterans Filing a Claim for Exemption if Living in a Nonprofit Home for the Elderly
Nonprofit Home for the Elderly
Personal Property Used for Placing Farm Crops in Storage
Pollution Control Facilities
Oregon Food Processor Property Tax Exemption
Hardship Situations
Agricultural Workforce Housing and Farm Labor Camp Assessment
Filing a Claim for Exemption When a Farm Labor Camp or Child Care Facility is Acquired
Certification of Nonprofit Corporation Low Income Housing Exemption to County Assessor
Rural Health Care Facilities
Filing Requirements
Vertical Housing Development Zone Program
Qualified Heavy Equipment and Qualified Heavy Equipment Rental Providers - Definitions and Responsibilities
Equipment and Tools Subject to the Heavy Equipment Rental Tax
Cost of Heavy Equipment Operator’s Service Not Subject to Rental Tax
Heavy Equipment Rental Tax Exemptions
Long Term Rental Agreements
Last Updated

Jun. 8, 2021

Rule 150-307-0210’s source at or​.us