PORTLAND, Ore. — The Oregon Energy Department has reduced the tax credit for installing solar power panels at homes.

PORTLAND, Ore. — The Oregon Energy Department has reduced the tax credit for installing solar power panels at homes.

The Oregonian reports a 2,000-watt system that cost a homeowner about $650 after credits and a rebate will now cost about $3,300.

An official of one solar power installer, Jeff Friedman of LiveLight Energy of Beaverton, says the rule change will bring a screeching halt to home installations.

The Energy Department says it changed the tax credit to save money as the state faces a budget shortfall. Department analyst Robert Underwood says people should be contributing more of the cost.

The change does not apply to commercial work, and a federal tax credit for solar power is still available.

-Associated Press