Upgrade & Save and Community-Based Power — Explained

One of our biggest climate priorities this legislative session is making the biggest polluters pay for the damage they've caused in our state. While the climate impacts of everyday people pale in comparison to major oil and gas corporations, individual action still matters. Switching to clean energy at home saves you money on utility bills, reduces your carbon footprint, and even bolsters the electric grid (more on that below).

The problem is, clean energy upgrades are still out of reach for many Oregonians. That has to change. Clean energy upgrades are crucial for both easing the pain of the affordability crisis affecting thousands across the state and strengthening the electric grid - especially as increasingly common extreme weather events threaten the grid's reliability.

This session, OEC is working on two bills that will help solve the problem: Upgrade and Save, and Community-Based Power. Here's what they do:

Upgrade and Save

The co-benefits of energy efficiency and clean energy solutions - such as smart thermostats, solar energy, batteries, electric vehicles, and heat pumps - are well-documented. They make our homes and buildings more resilient and comfortable, reduce our energy bills and exposure to pollutants, all while strengthening our electrical grid.

However, as federal clean energy tax credits and incentives go away (thanks to Trump's Big Ugly Bill) and state programs like the Rental Home Heat Pump Program and Community Heat Pump Deployment Program run out of funding (thanks to high demand!), we need to identify innovative and sustainable financial solutions for these critical distributed energy and energy demand management solutions. This is especially true for families and individuals who may have trouble affording the higher upfront costs to purchase and install these clean technologies, although the pace of uptake is still too slow across all incomes.

That's where Upgrade and Save (SB 1588) affordable financing programs come in. These programs are designed to make energy efficiency and electrification more affordable and accessible to households by using the cost savings from these upgrades to support a capital investment from their utility. Here's how it works:

• A utility invests in a cost-saving home upgrade, while the customer pays a service charge on their monthly utility bill that is less than the estimated savings from the upgrade.
• The utility works with the customer to determine eligibility and project scope, including weatherization, heat pumps, solar power, battery storage, or a combination of solutions.
• The utility covers some or all of the project's upfront cost, ensuring the monthly service charges are less than the estimated savings.
  Once the utility's costs are recovered, the service charges stop and the customer enjoys even greater bill savings.
• All utility customers-even non-participants-save money through reduced peak energy consumption, more distributed and flexible energy on the grid, and avoided costs of more expensive grid upgrades.

Utility service offerings like Upgrade and Save (also known as Inclusive Utility Investment) are prevalent across the country. However, our state's electric utilities have yet to leverage this financial solution for clean energy upgrades.

We want to change this in the 2026 legislative session by passing SB 1588, offering another pathway for families to enjoy the benefits of clean, affordable, and resilient energy. This could unlock affordable home energy efficiency and electrification possibilities for tens of thousands of Oregon residents.

Community-Based Power

While we are making clean energy and energy efficiency technologies more affordable and accessible, Oregon can double down on the grid, resilience, and rate-saving benefits of these climate solutions. This is essential at a time when we are seeing more strain on our electric grid from new large load demands, such as the growth of data centers in the region, as well as strain on Oregonians' wallets with higher utility bills.

This is why there is a growing chorus of supporters to tap into local renewable energy and energy system load flexibility - enabled by the same distributed energy and energy demand management devices that Upgrade and Save programs finance. This concept has many names, such as Virtual or Distributed Power Plants, but at OEC, we like this one best: Community-Based Power.

Community-Based Power (SB 1582) programs increase grid reliability, lower the need for new infrastructure, and reward business and residential customers for using clean energy technology. By leveraging energy already available within local neighborhoods, Community-Based Power helps utilities maintain grid reliability without relying on costly fossil-fuel-fired backup generation. This capability is especially valuable during peak demand periods - such as extreme winter cold or summer heat - when electricity usage spikes across the grid simultaneously. The result is a more stable grid and lower costs for consumers, all by prioritizing locally available energy like solar panels and batteries.

We aim to bring Community-Based Power out of small-scale investor-owned utility pilots into robust, durable programs that all customers can access and benefit from. To fully realize their potential, regulators need the ability to properly evaluate and account for the resiliency, affordability, climate, and economic benefits of Community-Based Power when making utility planning and investment decisions. This legislation allows for these positive outcomes and represents another important step forward to secure Oregon's climate and clean energy future.

Taking Action

You can help get these bills across the finish line this session!

1. Sign up for our action alert emails . We'll keep you informed about ways to make your voice heard when it counts.
2. Become a member of OEC with your donation today. 100% of OEC's revenue comes from individuals, foundations, and philanthropic giving. Your support powers our ability to show up and fight for the health protections Oregonians deserve.

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