RESIDENTIAL REBATE PROGRAM

energytrust.org - 1-866-ENTRUST

1) Incentives for Residential Solar Photovoltaic System

Energy Trust Incentive

Homeowners - up to $10,000

Pacific Power: $2.00 per watt dc

Tax Credits

State: $3.00 per watt, up to $6,000

$1,500 max per year, claimed for up to 4 years

Federal: 30% of net installed cost, up to $2,000

Example - 1,000watt system - (1 KW system)

1. Total installed cost = $8,500 at ($8.50 per watt)

2. Energy Trust rebate = $2,000 -----Energy Trust incentive ($2.00/watt)

3. $8,500 - $2,000 = $6,500(Amount homeowner pays to contractor)

4. State tax credit = - $3,000 ($3.00/watt)*X 1,000 watts

5. Federal tax credit - $2,000 is Fed Max, (30% of $7,750)* = $2,235 but $2,000 is Fed Max

6. $6,500- $3000 - $2,000 = $1,500 Final net cost to customer

*Tax credits have been capped. System costs vary and depend on size.

*Typical systems range from $8-$11 per watt.

2) Incentives for Residential Solar Hot Water Heating

Energy Trust Incentive-

Up to $1,500, based on rated annual energy savings

Pacific Power & PGE: $0.40/KW-HR SAVED

Tax Credits

State: $0.60 per kWh, up to $1,500

Federal: 30% of net installed cost, up to $2,000

Example ----- 2,400 kWh/year POTENTIAL SAVINGS

1. $6,500 Total installed cost 

2. $720 Energy Trust incentive ($0.30/kWh)

3. $6,780 Amount homeowner pays to contractor

4. $1,440 State tax credit ($0.60/kWh)

5. $2,000 Federal tax credit (30% of $6,780)*

6. $6,780 - $1,440 - $2,000 = $2,340

7. $2,340 Final net cost to customer

8. *Tax credits have been capped. System costs vary and depend on size. Typical systems range from $6,000-$9,000.

BUSINESS REBATE PROGRAM

1) Incentives for Business Solar Photovoltaic System

Three incentives are available for solar electric systems for businesses in Oregon. Below is a brief summary of these incentives. Please go to the WEB sites for further information.

Federal Incentives

http://egov.oregon.gov/ENERGY/CONS/Federal-Bus.shtml#Solar

Solar energy systems purchased between January 1, 2006 and December 31, 2007, are eligible for a 30 percent federal tax credit. This tax credit does not have a maximum credit limit. The credit is reduced to 10 percent after that date.

Example 15 KW at $8,000/KW = $120,000

.3 X $120,000 = $36,000 Federal Incentive

Oregon State Incentives

http://egov.oregon.gov/ENERGY/CONS/BUS/BETC.shtml

State tax credits do not reduced by the amount of the federal tax credit. Utility incentives may reduce the amount of the tax credit and/or may be treated as taxable income by the IRS.

The tax credit is 35 percent of the eligible project costs - the incremental cost of the system or equipment that´s beyond standard practice. You take the credit over five years: 10 percent in the first and second years and 5 percent each year thereafter. If you can´t take the full tax credit each year, you can carry the unused credit forward up to eight years. Those with eligible project costs of $20,000 or less may take the tax credit in one year.

The Pass-through Option allows a project owner to transfer the 35 percent Business Energy Tax Credit project eligibility to a pass-through partner for a lump-sum cash payment. A project owner may be a public entity or non-profit organization with no tax liability or a business with tax liability that chooses to use the Pass-through Option.
 
The Pass-through Option rate for five-year Business Energy Tax Credits effective October 1, 2003 is 25.5 percent. The Pass-through Option rate for one-year Business Energy Tax Credits (those with eligible costs of $20,000 or less) effective October 1, 2003 is 30.5 percent. The Oregon Department of Energy sets the Pass-through Option rates.

WHAT COSTS ARE ELIGIBLE?
The tax credit can cover all costs directly related to the project, including equipment cost, engineering and design fees, materials, supplies and installation costs. Loan fees and permit costs also may be claimed. Replacing equipment at the end of its useful life or equipment required to meet codes or other government regulations is not eligible. Maintenance costs are not eligible.

Example $120,000 X .35 = $42,000 State Incentive

If Governors budget proposal is approved this legislature then incentive goes to %50. = $60,000

Energy Trust of Oregon Incentives - http://www.energytrust.org/

Commercial Energy Trust Solar Electric Incentive Businesses - up to $70,000 (Note: new incentive amount as of January 31, 2007)

(Note: new commercial incentive amounts as of January 31, 2007)

Businesses will own green tags during the first 2 years of operation.

Example - Energy trust incentive = $1.25 X 15,000 watts = $18,750

Example Total - $120,000 - 42,000 - $36,000 - $18,750 = $23,250

Aproximate payback period - for discussion only - not to be used for your specific savings opportunity. Check solar radiation web site for U of Oregon energy availability in Lakeview to find exact savings. (http://solardat.uoregon.edu/)

2) Incentives for Business Solar Hot Water Heating
 

Energy Trust Incentive

Pacific Power Customers with Electric Water Heaters $0.40 per kWh

State Business Energy Tax Credit

1. 35% of installed system cost

2. Income tax credit for businesses, administered by Oregon Department of Energy

3. Claimed over five years if project costs exceed $20,000

4. Eligible project costs may be capped by 15 year payback requirement

5. Must apply before beginning project

6. Application and more information available at: egov.oregon.gov/ENERGY

Federal Investment Tax Credit

1. 30% of installed system cost

2. Federal income tax credit for businesses

3. Not available for pool heating

4. Can be claimed in the first year

5. IRS Form 3468 available at: http://www.irs.gov

For more information, reference "Guide to Federal Tax Incentives for Solar Energy" from the Solar Energy Industries Association, available at: http://www.seia.org

Bob Rogers
Oregon Renewable Energy center
Lakeview Office
11 N. G Street
Lakeview, Oregon
947-6965