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Oregon's legislative session has ended -- and June 2007 will be remembered as one of the sunniest month on record. Building on the momentum of its new Renewable Energy Standard, Governor Ted Kulongoski recently signed several key solar policies designed to encourage solar manufacturing and the installation of solar hot water and photovoltaic (PV) systems in the state.
"This will be remembered as a banner year for solar energy in Oregon. We have already attracted two new major solar manufacturers to the state, with more likely on the way."
-- Oregon Governor Ted Kulongoski
The state's Renewable Energy Standard (RES), requiring 25% renewables by 2025, includes a provision that extends funding for the Energy Trust of Oregon (ETO) until 2025. The ETO funds programs for both solar hot water and PV system installs.
In addition, the Oregon Business Energy Tax Credit was increased from 35% to 50% of eligible renewable project costs (up to $20 million); a tax exemption for solar net metered systems passed along with a statewide public buildings solar provision requiring 1.5% of the construction budget to fund onsite solar technologies.
"The legislature's approval of a 50% tax credit for both [solar] installations and manufacturing facilities clearly places Oregon as one of the lead states in the advancement of solar energy," said Christopher Dymond, solar program manager at the Oregon Department of Energy.
Already ranked 5th in the U.S. for solar hot water systems and in the top 10 with PV, Oregon's solar industry is growing at over 30% annually.
"This will be remembered as a banner year for solar energy in Oregon," said Governor Ted Kulongoski. "We have already attracted two new major solar manufacturers to the state, with more likely on the way. And the steps we have taken this session with a renewable energy standard, tax incentives and greenhouse emission mandates have put us on a path to become the national center for renewable energy development and production."
According to the Oregon Solar Energy Industries Association (OSEIA), the arrival of German-based SolarWorld AG and California-based Solaicx mean over $400 million of investment in solar manufacturing for the state. By 2009, SolarWorld's Hillsboro, Oregon, plant plans on being at capacity of 500 megawatts (MW) and Solaicx, in Portland will add another 48 MW making Oregon the largest producer of PV cells in the U.S.
"This is great news. It's another example of how we're growing manufacturing in the northwest. We're now a powerhouse in the United States in solar manufacturing," said Jon Miller, executive director of OSEIA. "Oregon's established and educated semiconductor workforce makes it a natural fit for the solar PV industry."
Along with the legislation passed above, the state is raising it's net metering for investor owned utilities (IOU's) to 2 MW. IOU's serve over 75% of Oregon's utility customers. The new 2 MW limit, fashioned after the NJ standard, is expected to become final in September 2007.
The 2007 legislation passed this term includes:
Business Energy Tax Credit (BETC)
• Credit is available for solar PV and thermal installations
• Credit is also available to manufacturers siting facilities in Oregon
• Increases tax credit to 50% of eligible project costs
• Increases eligible project costs to $20M (50% of $20M = $10M max credit)
• Credit is 10% annually for 5-years
• Includes $9,000 tax credit available to builders for solar PV and Hot water in new construction single family dwellings
Residential Energy Tax Credit (RETC)
• All previous credits included ($6,000 for PV and $1,500 for SHW)
• Enables homeowner to apply for credit for installing both solar hot water and PV in the same year
HB2620, Solar on Public Buildings
• Requires all public buildings that receive state funding to invest 1.5% of project costs in solar technologies: solar technologies include PV, Solar Hot Water; Passive solar energy qualifies only if the system achieves a reduction in energy usage of at least 20%.
HB3488, Solar Teamwork bill
• Provides tax exemption for solar net metering systems
• Enables Investor Owned Utilities to provide low interest loans for solar customers
SB819, Sate kicker fund/BETC
• Fixes problem with interaction of kicker refund and BETC
• Critical for BETC pass through partners and out of state investors/developers
I don't see any cost estimates or forecasts on how much the state is expected to over pay on energy under this plan. In many cases, these programs are just glorified corporate welfare and jobs programs under the disguise of enviromentalism. (You cann't say anything bad about green energy, even if its three times more expensive and unreliable --- the koolaide drinking green folks never want to see a cost comparison.)
Yes, the 50% business energy tax credit is available to other commercial renewable energy system installs (such as wind). There is also a $6,000 residential wind energy credit similar to the $6,000 solar PV credit.
And yes, we do have clouds here. Not quite as many as Germany has (who installs over 600MW of PV annually) but we do have them. We also join Washington state to make the Northwest the US industry leader in solar manufacturing.
This is awesome for Oregon. I'm writing my governor (AZ) today. It seems very strange to me that Oregon, known for clouds, is taking the lead on solar, while Arizona and New Mexico, known for sun, is mostly (but not completely) ignoring solar.
Renewable Energy = National Security
Jim,
More important about the price of Green energy is not that it is more expensive than the traditional energies in this particular moment. Rather the speed their price decreases and the fact that this trend will continue for many decades.
Lets take photovoltanics for example. Most common type of them use refined silicon wich is produced from the most common element in the earth crust via energy and knowledge. Than it is transformed via energy and knowledge into solar panels. Wich at this moment have EROEI between 300% and 3000%. We cant deplete the silicon (unlike oil and uranium) while the energy prices fall as solar panels penetrate the market.
So as I see it photovoltanics have the potential to deliver near free energy. Dont forget that nuclear and coal plants recievet enormous amount of finantial and political support during the years wich brought their prices down.
Jim,
Your unreliable comment is simply not correct. If the system is installed correctly, and designed correctly. They are very reliable. That is why the Oil and Gas industry relies on PV to automate, and controll the oil feilds. They rely on the power from PV to keep track of the billions we are eventually charged to drive, heat our homes, and live our energy consumptive lives. Either way our chrildren will be the ones who pay.
Jim,
You want to talk subsidies. What about the billions the oil companies have recieved over the years including the last couple when they were raking in tens of billions in profits, oh yeah not to mention the thousands of lost lives and hundreds of billions spent by their biggest Big Oil supporter- President Bush in Iraq.
Yes this site is cool but what about small wind installations? R:)
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