A brief description of solar energy in Oregon and available incentives

Does Solar Energy work in Oregon?

Although eastern and southern Oregon have more sunny days than the Willamette Valley, Oregon is an entirely viable solar energy. Germany, a world leader in solar energy, Germany’s climate and location gets as much solar radiation as the Willamette Valley. Germany is making a huge investment in solar energy, including one of their leading manufacturers is based in Oregon. Germany’s best location gets as much solar radiation as the Willamette Valley. Solar works here.

[Back to Top]

How does a Solar Energy system work?

A grid-tie solar electric system is comprised of two major components: photovoltaic panels (PV) and DC-AC inverters. While there is certainly some complex technology in the design and manufacture of solar electric systems, the process of converting sunlight to electricity is fairly simple: sunlight strikes specially treated silicon cells in the photovoltaic (PV) panels creating an electron flow. The electrons pass through the inverter which “inverts” the DC power from the panels to AC and sends it out to the utility grid. These systems are referred to as “grid-tie” systems because the building remains attached to the grid. Unlike “off-grid” systems, there are no batteries. A grid-tie solar electric system is designed to supplement the power used from the electric utility. These systems can be installed in several different ways - roof attachment along with pole and ground mounting.

Net Metering

The term net metering refers to the method of your electric meter and how it accounts for a PV system's electricity production. Net metering is a policy that allows PV system owners to receive the full value of the electricity that their solar energy system produces. As the owner's PV system produces electricity, the kilowatts are used first to meet any electric requirements of that meter’s load. If more electricity is produced from the PV system than needed, the extra kilowatts are fed into the utility grid.

Understanding your utility rate schedule, especially if you have several meters on the site, is important. If the meters are on the same utility rate schedule you can aggregate their total usage in sizing your system. If not, there are other options. Solutions Revolution will assist you to interpret your utility usage and billing information.

[Back to Top]

Financing a Solar Power System

It is important to have your Accountant or Tax Preparer to communicate with us early in the process! They may be the most important person in the process. While there are several available financial incentives, only your financial advisor can determine which, if any, are applicable to your business. There are many sources for these incentives: they include the Oregon Business Energy Tax Credit, the federal renewable energy Investment Tax Credit, MACRS 5-year accelerated depreciation and, depending which utility territory your operation resides in, the Energy Trust of Oregon or the Bonneville Power Administration. In addition, each system is allowed to retain use of its Green Tags for the first two years of operation. Solutions Revolution will review your Tax Liabilities and work with your advisor to take the best possible advantage of these programs.

[Back to Top]

Incentives

Oregon's Business Energy Tax Credit (BETC)

The Oregon Business Energy Tax Credit (BETC), commonly called the “betsy”, is up to 50% of the eligible system cost based on the system size and efficiency. The BETC includes a pass-through option, which allows the system purchaser to “pass” the tax credit to a partner or entity with an Oregon tax liability. The Oregon BETC has an application fee of .06% of the eligible system cost.

Federal Business Energy Tax Credit

The Federal BETC offers a straight 30% tax credit. This is designed to be taken in the tax year of system startup. Unlike the Oregon BETC, which is credited over 5 years, this is a single, one- time deduction. Also unlike the Oregon BETC, the pass-through option is not available; the credit must be used by the system owner.

Accelerated Depreciation - MACRS

Under the Modified Accelerated Cost-Recovery System (MACRS), businesses can recover investments in solar, wind and geothermal property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. For solar, wind and geothermal property placed in service after 1986, the current MACRS property class is five years. The basis calculation is reduced by half the amount of the federal tax credit or 15%. In other words, 85% of the purchase price would be the depreciation calculation basis.

Energy Trust of Oregon (ETO)

The Energy Trust of Oregon offers rebates of between $1.00 and $1.50 per watt of installed DC capacity for PGE and PP&L customers for system up to 100kW. Your system must be approved for the rebate before beginning the project. It’s also important to note that ETO requires that roof mounted systems be on a roof certified with at least 15 years of remaining life. We’re responsible for the majority of this paperwork. It includes such things as expected annual electricity production, sun charts, technical specifications, and equipment list. This rebate is taxable.

[Back to Top]

Grants

REAP Renewable Energy Grant

National USDA Rural Development and the e build cooperative financial partnerships with rural Oregonians. USDA Rural Development's Business & Cooperative Programs staff administers a variety of Federal loan guarantee, direct loan, and grant programs designed to support business and cooperative development, and promote sustainable economic progress in Oregon's rural communities. We can help your business can apply for up to a 25% grant. Rural Energy Projects funded by Rural Development in Oregon for Renewable energy amounted to $1,003,520 in 2008. These funds are available to help cover the cost of you renewable energy in your business located in a population less than 50,000 people. SOLR will be able to help to prepare these grants for renewable energy and as well as financing through USDA Guaranteed Loan Program. This grant is taxable.

More Information

The following web sites offer further detail and updates on these incentives:

Oregon Department of Energy:
Energy Trust of Oregon:
Database of State Incentives for Renewable Energy:
Tax Incentives Assistance Project:
Oregon USDA Rural Development Grants:

[Back to Top]

Operation and Maintenance

A Solar PV energy system have no moving parts and, as such, need little maintenance. The primary maintenance will be ensuring that the PV panels stay clean for maximum efficiency. Most of our systems come with remote monitoring systems that will notify both you and Solutions Revolution about possible system problems. With panel warranties of 25 years and inverter warranties of up to 20 years these systems are designed for an extended system life - perhaps 30 - 40 years. Your solar energy system will be producing renewable, carbon neutral energy for a long time.

About SOLutions Revolution

Sustainable Renewable Energy Design and Installation

At Solutions Revolution - SOLR, we take a team approach to solving your renewable energy needs, a team focused on long lasting quality of engineering, construction, implementation, and maintenance for commercial and industrial needs.

From site evaluation, energy analysis, business tax incentive analysis, electrical engineering and design, project management, installation and service. Allowing your company to become a truly green enterprise, with zero cost.
An Oregon Based General Commercial Contractor focused on renewable energy projects we can deliver complete Solar Solutions for your commercial, industrial, or residential community. Our team of engineers, contractors, installers, and business professionals will deliver anything from a complete energy analysis, tax incentive analysis, grant proposals for renewable energy programs, to complete project management so your renewable energy system is easy to be in place.