Paying for Solar

Tax credits
Oregon Business Energy Tax Credit : 50% of maximum eligible cost, claimed over five years (10% per year)

Federal: 30% of eligible project cost, plus accelerated depreciation (Modified Accelerated Cost Recovery System)

Energy Trust incentive
$0.50 - $1.25/watt ($0.25 higher for nonprofits), maximum 200 kW in Pacific Power territory; maximum 800 kW in PGE territory

Energy Trust's solar electric incentive is determined by the rated capacity of the photovoltaic array and the electric utility that serves the site. Additional rates for larger projects available.

Feed-in Tariff
PGE, Pacific Power & Idaho Power customers: $0.55-0.65 per kilowatt hour produced, depending on location system size and location (most business-sized systems are priced at $.55 per kWh for 15 years). If one takes the Feed-In Tariff, the project is not eligible to receive either the Oregon BETC or the Energy Trust incentive.

Information for PGE customers
Information for Pacific Power customers

3rd Party Owned or Power Purchase Options
Some companies offer customers the option of a solar power purchase agreement (PPA) in lieu of purchasing a solar electric system directly. In this arrangement, the company purchases and installs the solar electric system on your behalf and you pay them for the electricity produced by the panels. Any additional energy you need that isn't provided by the panels, you purchase from your utility as usual.

Depending on the company, you may pay nothing or a small fee upfront to have the system installed. Because the solar company pays for the equipment and installation, the company owns the system and receives any incentives or tax benefits the system may be eligible for.

Financing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).

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Tax credits
Oregon:50% of maximum eligible cost, claimed over five years (10% per year)

Federal: 30% of eligible project cost, plus accelerated depreciation (Modified Accelerated Cost Recovery System)

Energy Trust incentive
$6.00/therm or $0.40/kWh

Incentive is based on calculated annual energy saved by solar water heating system and the utility that serves the water heating load.

Financing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).

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Tax credits
Oregon: 50% of maximum eligible cost, claimed over five years (10% per year)

Federal: No federal tax incentives are available for pool heating projects.

Energy Trust incentive

For seasonal use pools <1,000 square feet:

Gas from NW Natural/Cascade Natural Gas	$3.00/sq. ft. of collector
Electric from PGE of Pacific Power	$2.25/sq. ft. of collector

Maximum incentive amount is $1,500.
For year-round use or indoor pools >1,000 square feet:

Gas from NW Natural/Cascade Natural Gas	$1.50/therm of first-year energy savings
Electric from PGE of Pacific Power	$0.10/kWh of first-year energy savings

Maximum incentive amount is 35 percent of project cost.

Incentive is based on either the square footage of solar pool heating collectors installed or the estimated annual energy savings from the solar pool heater.

Financing
Take advantage of low-interest rate, no-fee financing with GreenStreet Lending through Umpqua Bank (an Equal Housing Lender).

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Solar electric system example–30,000 watts
Portland General Electric business customer

$180,000	Total installed cost*
- $37,500	Energy Trust incentive ($1.25/watt)
- $90,000	Oregon BETC tax credit (50% of cost)**
- $54,000	Federal tax credit (30% of cost)**
-$30,600	MACRS Accelerated Depreciation**
+$38,250	Federal Taxes on State incentives**
$6,150	Net final cost to business owner

* Solar electric system costs vary and depend on size. Typical systems range from $5,000–$7,000 per kilowatt installed for typical business-sized systems.

**Consult your tax accountant for exact effects for your business's specific financial situation. The information provided here is not legal tax advice.

Solar water heating system example–500 square feet of collector
Northwest Natural Gas business customer using 500 gallons of 140 degree water per day

$60,000	Total installed cost
- $3,810	Energy Trust incentive ($6/therm saved)
- $30,000	Oregon BETC tax credit (50% of cost)**
- $18,000	Federal tax credit (30% of cost)**
-$15,300	MACRS Accelerated Depreciation**
+$10,143	Federal Taxes on State incentives**
$3,033	Net final cost to business owner

**Consult your tax accountant for exact effects for your business's specific financial situation. The information provided here is not legal tax advice.

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