Renewable Energy-Related
Legislation and Loan programs in Oregon
According to Oregon’s Business Energy
Tax Credit (BETC), any project using qualifying facilities can get an
offset up to 35 percent of the cost the facilities against Oregon income
and corporation excise taxes. And qualifying renewable energy resources
and facilities including high efficiency combined heat and power facilities
can avail a tax credit up to 50 percent of the eligible cost. The eligible
renewable energy resources must be completed on or before January 1,
2007. The tax credit is also available for home owners who install renewable
energy facilities in their home. Any homebuilder with renewable energy
facility can avail a tax credit up to $9,000. And certified high performance
home builder installed renewable energy facilities are eligible for
a tax credit up to $12,000. A certified home means that it has availed
the Northwest Energy Star Homes Program along with some additional requirements.
The maximum amount that can be credited through BETC for qualifying
high efficiency combined heat and power facilities is capped at $10
million. Any unused credit can also be carried forward up to eight years.
Any Oregon business or qualifying non-profit organization can also transfer
the tax credit in return of a cash payment. Any Oregon business can
qualify for this tax credit. The credit can be used to cover the actual
project cost including equipment cost, design fees, supplier and installation
costs. But maintenance costs cannot be covered by this tax credit. However
the organization cannot apply for this tax credit to meet the replacement
cost of equipment after the end of its useful life. According to HB
3619 in March 2008, the maximum amount was increased to $20 million
which is 50% of a $40 million project. Also HB 3619 made Oregon Department
of Energy (ODOE) the governing body which is required to set the standards
for the qualifying manufacturing facilities. Also ODOE will set the
minimum level of increased employment in the organization and its financial
viability. ODOE has the full authority to grant lesser amount of costs
than what was actually applied by the qualifying facility based on these
standards. The list of renewable energy resources include solar, wind,
hydro, geothermal, biomass or fuel cells. At least 10% of the total
electricity, gas or oil used must be replaced by the renewable energy
resource. The energy can be used for the applying project itself or
it can also be sold. Till now a total of 14,000 tax credits have been
provided to the Oregon’s business by ODOE and at least $215 million
worthy investments have been saved.
According to HB 3201, a separate tax
credit for Renewable Energy Resource Equipment Manufacturing Facilities
was enacted in June 2008. It was done as a part of the Oregon’s Business
Energy Tax Credit (BETC). Through this tax credit up to 50% of the construction
costs of a facility can be availed. The eligible facility is the one
which will manufacture renewable energy systems. The tax credit can
used to cover the cost of the building excavation, equipment and machinery
used to manufacture the system. This total 50% tax credit will provided
over the course of 5 years. Each year tax credit equal to 10% of the
cost will be given. HB 3619 totally separated this manufacturing credit
from the rest of the revenue stream for BETC. To be qualified for the
tax credit the renewable energy system must produce energy from the
sun, wind, water or geothermal resources. An application should be submitted
to the ODOE for preliminary certification. In addition to this certification,
the system should also acquire a final certification and a financial
feasibility review. The maximum amount that can be credited through
this manufacturing tax credit is capped at $20 million.
With an ambition to promote innovation
in project finance and design and to increase the scope of clean renewable
energy generation technology, Bonneville Environmental Foundation’s
(BEF) started Solar 4R Schools program in the year of 2002. With the
help of this program schools in the state of Oregon can avail grant
to install small scale solar systems. After the completion of the installation,
these projects will also include educational components to encourage
the use of photovoltaic. In return of the grant the participating school
will get to own and maintain the system and it will also provide access
to the network to transfer the solar data. The solar system and monitoring
equipment will be provided by the BEF. The school has to maintain a
renewable energy curriculum framework provided by the BEF. The photovoltaic
monitoring data can be availed through school’s computer network or
it can also put on the school’s website for public access. Till now
BEF has come up with 3 different curriculum modules for the schools.
A complete funding for systems of 1.1 kW can be availed through BEF
and for other larger systems, 33% of the original cost can be availed.
Through Eugene Water & Electric
Board’s (EWEB) Solar Electric Program commercial and residential customers
can avail financial incentive from the company. The eligible systems
must be producing electricity using solar energy. If the customer wants
then he can go for rebates and in that case he will have to put the
system under net meter program. Otherwise he can avail a production
incentive for a system generating 10 kW or more electricity. The amount
of rebate for net metered system is $2 per watt-AC and the maximum amount
is capped at $10,000. And the same for commercial customers is
$1 per watt-AC with a maximum amount of $25,000. The electrical output
of the system will be calculated after the equipment and site losses
are taken into account. The customer will retain the ownerships to the
renewable-energy credits (RECs) generated by his system. If the customer
agrees not to use the electricity generated and feed it to the grid,
then he can avail a production payment of $0.12 per kW for 10 years.
But under this category EWEB will retain the ownership to the renewable-energy
credits (RECs) generated by the system. To become eligible for this
program a EWEB interconnection agreement and program agreement must
be executed.
According to HB 3039 enacted in July
2009, all solar photovoltaic systems are eligible for a pilot feed-in-tariff.
All electric companies except electric co-operatives and public utility
districts will offer this feed-in-tariff. To become eligible for this
program, the photovoltaic system must be grid connected and generated
electricity must be used for sale to a utility. In addition to these,
the applying systems should be metered and meet all the codes and regulations
applicable in the state of Oregon. The maximum capacity for this pilot
program is capped at 25 megawatt-AC. And also 75% of this total electricity
must be generated from small scale solar systems. No rate or rule was
specified in the HB 3039. T he Public Utility Commission (PUC) is set
to adopt the rules and rates for this program by the end of April 2010.
The incentive will be paid over duration of 15 years at a rate set initially
while enrolling in the program.
Various Rebate programs
Energy Trust – Solar Electric Buy-Down
Program
Oregon’s Energy Trust started this
incentive program in May 2003. Through this incentive customers of Pacific
Power and PGE can avail funding to install new solar photovoltaic systems
on their new or existing homes. This State Rebate Program is applicable
to commercial, industrial, residential sectors. The incentive amount
for residential photovoltaic systems owned by homeowners is $1.50 per
watt-DC within Pacific Power service territory and $1.75 per watt-DC
within PGE service territory. The maximum amount per site which can
be availed through rebate program is capped at $20,000. The applying
system must meet all the federal, state and local codes and should carry
a minimum warranty of 2 years on parts and labor. Other than these inverters
must carry a minimum warranty of 5 year and panels should carry a minimum
of 2 year warranty. The systems should also be grid connected and net
metered. The installation should be done by an approved Energy Trust
solar trade ally contractor. The budget for this state rebate program
for the year of 2009 is $1.6 million in Pacific Power’s service territory
and $6.1 million in PGE’s service territory. All the RECs generated
by the system will be owned by the customer and after that it will revert
to Energy Trust for the following 20 years.
EPUD – Solar Water Heater Loan
This solar water heater program was
started by the Emerald People’s Utility District (EPUD) in the year
of 1997. Till today EPUD’s customers’ count is more than 17,000.
EPUD’s residential customers who buy solar hot water heater are eligible
to avail a $600 rebate in addition to a zero interest loan. The total
budget for this rebate program is $18,000 per year. The interested customers
must select an EPUD approved contractor. If the installation includes
additional costs which will not be covered by the rebate then customers
can borrow up to $7,500 with zero interest. For loans of less than $1,500
the repayment must be done with a time period of 3 years and for loans
of greater than $1,500 it is 5 years. Till today a total amount of $350,000
has been awarded under this loan scheme. In addition to this loan a
State tax credit can also be availed for qualifying systems.
Central Electric Cooperative – Solar
Rebates
As a part of the Bright Way to Heat
Water Program from Bonneville Power Administration, all the customers
of Central Electric Cooperative (CEC) are eligible to avail a cash rebate
of $500 if they make a purchase of electric water heater. This rebate
is available to all systems over 31 square feet. Systems should also
meet all the technical standards imposed by the State of Oregon Tax
Credit. The installer must be approved by the CEC. System installation
work should not be started until the application gets approved by the
CEC and the rebate will provided only after a complete inspection of
the system is made. Other than this CEC also offers a solar PV rebate
for all net metered systems. If the system is not generating more than
25 kW then it can avail a rebate of $500 per kW of installed capacity
with a maximum rebate of $1,500 per system.
