INCENTIVES
Summary by Solar Assist

The incentives for renewable energy are many. Most utilities, gas and electric, offer discount incentives that reduce your initial up front cost, making a system purchase more affordable. Some utilities also offer loans with low interest or zero interest. Utility incentives are also available for a wide variety of energy efficient appliances and other home features like windows. Check with your local utility for the specifics.

Both state and federal tax credits are available to add more incentive and reduce your final net cost even further. These are illustrated in the examples that follow from the Energy Trust of Oregon. While the utility incentive used in this example is not typical of all utilities there are some with programs that compare favorably. In Eugene area, EWEB and EPUD have similar programs to the Energy Trust of Oregon. Commercial incentives are even more substantial so please ask us about the systems we can offer your business as well as the generous incentives that help pay for them.

For examples of how the incentives work please see the Energy Trust of Oregon examples below.  Prices do vary based on installation details, complexity and material costs.  Please note that the Oregon “Business Energy Tax Credit” has just recently been modified to a 50% credit but the Department of Energy is clarifying the administrative rules.  A new, up to date example will be available soon.

To download an example of how residential incentives can work for you click here

To download an example of how commercial incentives can work for you click here

The following information is from Energy Trust of Oregon

Q: Does solar work in Oregon?
A: Yes, even in the Willamette Valley. Oregon receives more sun than Germany, which is leading the world in its use of solar energy.

Q: What's a solar system?
A: There are two kinds of solar energy systems you can add to your home: solar electric and solar water heating. A solar electric systems makes electricity, which can be used by any electrical device in your house and saves you money by reducing the number of kilowatt-hours (kWh) on your monthly PGE or Pacific Power bill.
A solar water heating system preheats the water that goes into your existing water heater, which saves you money by reducing the amount of gas or electricity your water heater consumes.

Q: How much does solar cost?
A: For a solar electric system. the average cost is $9,000 for each kilowatt (kW), not including incentives. Incentives, including tax credits, typically cover more than half the cost. The cost depends on the size of the system, and any size system can be installed.
A typical solar hot water heating system costs $6,000-$8,000 before incentives. Incentives may cover over half the cost.

Q: What size system do I need for my house?
A: Electricity production is directly proportional to system size for solar electric systems. 1 kW of solar electric panels optimally oriented with minimal shade will produce approximately 1,000 kWh per year in Portland. Thus, a typical residential system of 3 kW will supply about 3,000 kWh annually, or 1/4 of an average Oregon home's yearly electric usage (an average four-member household uses 12,000 kWh/year).
Hot water is one of the largest uses of energy in your home. Residential solar water heating systems can save 2,000 - 2,800 kWh (100 - 140 therms of gas) per year. That's 60% of the energy used to heat water in an average Oregon home. In summer, your system may provide 100% of your hot water. During the winter months, solar will still heat the water, but not all the way to 120 degrees.

Q: What's the payback for a solar system?
A: Simple payback determines how long it will take for the savings or generation from your solar system to equal your up-front equipment investment. For a solar electric system, this will be 20-30 years, and 10-20 years for a solar water heating system at today's gas and electricity prices. However, this payback is improved by considering increased equity in your home, placing a higher value on renewable energy and hedging againast future fuel price increases.

The above information is provided by
Energy Trust of Oregon