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State Incentive Programs: Oregon
The Energy Trust of Oregon
The Energy Trust of Oregon, an independent nonprofit organization, administers programs for renewable energy and energy efficiency improvements, with funding collected through a public-purpose charge on Pacific Power and Portland General Electric ratepayers.
Of the funds collected, at least $10 million per year are allocated to renewable energy projects. The Energy Trust uses these funds to support projects through a loan program, assistance for grant applications, potential co-funding of feasibility analyses, and direct financial support for project development.
For solar installations, the Energy Trust currently offers both a Solar Electric Buy-Down Program and a Solar Hot Water Buy-Down Program, available to residential and commercial projects.
To be eligible for funding from the Energy Trust, a project must either be developed within the service territory of Pacific Power or PGE, or have a Power Purchase Agreement for the sale of energy to one of these utilities. The Energy Trust will provide referrals to contractors from their Trade Ally Network. PV systems must be grid-tied and net metered, and pre-approval is required. Oregon's current net metering size limit is 25 kW. However, larger systems may be eligible for rebates if approved for interconnection by the utility. Learn more about the Energy Trust programs on their website.
Business Energy Tax Credit (BETC)
Oregon businesses investing in, among other things, renewable energy projects in Oregon can claim a Business Energy Tax Credit (BETC) equal to 35% of eligible project costs (with eligible costs capped at $10 million). The 35% credit is taken either over five years (10% in the first two years, and 5% for the next three years), or alternatively as a discounted, lump-sum, up-front cash payment from a “pass-through” partner in exchange for the five-year credit. The pass-through option was designed to allow tax-exempt entities (e.g. schools) to benefit from the BETC by exchanging the tax credit with taxable businesses able to use the credit, and that is primarily how it has been used to date. Even taxable entities, however, may choose to seek pass-through partners and take the BETC as a lump-sum cash payment. The pass-through cash payment is currently equal to 25.5% of eligible project costs (as opposed to 35% of eligible costs for the five-year tax credit), a discount that is set by the Oregon Department of Energy (which administers the BETC) and is revisited annually. Further information is available online at the Oregon DOE website.
Oregon Small-Scale Energy Loan Program
The Oregon Small-Scale Energy Loan Program (SELP) is a state loan program administered by the Oregon Department of Energy for renewable and energy efficiency technologies. The program makes available low-interest loans to individuals, businesses, schools, cities, counties, state and federal agencies, tribes, public corporations, cooperatives, and non-profit organizations and may be taxable or tax-exempt. Tax-exempt financing is available to private parties through the use of Private Activity Bonds. This may be an advantage to borrowers who cannot take advantage of federal tax benefits. Typical loans vary from $20,000 to $20 million with varying terms, but terms may not exceed the life of the project. Businesses which qualify for SELP often qualify for BETC as well. Further information is available at here.
Oregon Renewable Energy Feasibility Fund
Oregon’s REFF is administered by the Oregon Economic & Community Development Department, and supports feasibility studies for projects that would qualify as “renewable resource projects” under the Oregon BETC program. Cities, counties, county service districts, and tribes are eligible to apply. Funds can be used to evaluate topics such as available renewable resource, siting and permitting requirements, transmission/ interconnection issues, ownership structure, funding mechanisms, economic viability, community acceptance, and/or to conduct a fatal flaw analysis. A Call for Applications is to be issued twice annually in the Fall and Spring. The applicant must provide a minimum of 25% of the study costs, with maximum grants of $50,000. Further information is available at Oregon's Department of Economic & Community Development website.
Residential Energy Tax Credit
Homeowners and renters who pay Oregon income taxes are eligible for the Residential Energy Tax Credit if they purchase solar, wind, geothermal heat pumps, or various efficient technologies/appliances. The method of calculating the credit varies by technology, but tax payers can earn up to $1,500 per year in credits. For more information visit the Database of State Incentives.
