The above net metering law, ORS 757.300 (HB 3219 of 1999), includes interconnection requirements for systems generating up to 25 kW. Standardized technical interconnection standards were developed by the Oregon Building Codes Division and apply to all utilities in the state. Systems must be installed according to the Oregon Electric Specialty Code (essentially NEC Article 690), comply with Institute of Electrical and Electronic Engineers (IEEE) codes, and employ Underwriters Laboratories (UL)-listed equipment. Manual external disconnects are not required.

The Oregon Energy Office site has a page dedicated to interconnection issues.

Oregon’s net metering law specifies that additional liability insurance is not required, but utilities are exempt from any liability for loss, injury, or death related to the interconnection of a net-metering system.  

Public Benefits Funds

A 3% public benefits charge to be paid by certain electricity users was included in Oregon’s 1999 utility restructuring legislation. The charge is expected to generate up to $60 million per year over the next 10 years for renewable resources, energy conservation and market transformation, low-income weatherization programs, and school energy programs. An additional $10 million was also authorized for assistance to low-income customers.  
 
The final version of the bill allocates the funds collected by the 3% public benefits surcharge in specific amounts. After 10% of the total funds are distributed to Education Service Districts for school energy efficiency and renewable resource activities, the balance is allocated as follows:

(1) Energy Conservation and Market Transformation, 63%

(2) New Renewable Energy, 19%

(3) low-income weatherization, 13%

(4) Housing and Community Services grants, 5%

 
Electric customers with loads greater than 1 MW may receive credits against the 3% charge for qualifying expenditures not to exceed 68% for new energy conservation expenditures and 19% for new renewable energy expenditures. These credits will be regulated by the Oregon Office of Energy and verified by a certified public accounting firm.  
 
The Energy Trust of Oregon (ETO) is a nonprofit organization created to invest public purpose funding for energy efficiency and renewable energy in Oregon over the next 10 years. This mandate emerged from energy reform legislation (Senate Bill 1149) passed in 1999, which included a 3% system-benefits charge to apply to Portland General Electric and Pacific Power ratepayers in the state.  

The ETO provides opportunities for Oregonians to take advantage of incentives for innovative applications of renewable technology, including small wind systems up to 25 kW, through an open solicitation process. 

This program is designed to support renewable energy projects that do not already have an established incentive program developed and launched by the ETO. The ETO expects to reserve 10% of the Renewable Energy program budget, or about $1 million annually, for open solicitation incentives. Projects generally will be awarded in the areas of small wind, solar photovoltaics, biomass, biogas, small hydro and geothermal electric.  
 
The program does not fund R&D or pre-commercial activities. It is likely to fund projects that follow certain guidelines, including:

• New, commercial technologies in established applications

• Old technologies in new applications

• Projects that can be implemented quickly

• Market-defining demonstrations

For more information see the Open Solicitation Program guidelines on The Energy Trust of Oregon website.

Business Energy Tax Credit

Oregon's Business Energy Tax Credit (BETC) is for investments in energy conservation, recycling, renewable energy resources, or less-polluting transportation fuels. Any Oregon business may qualify. As examples, projects may be in manufacturing plants, stores, offices, apartment buildings, farms, and transportation.  
 
The 35% tax credit is taken over five years: 10% during the first and second years and 5% for each year thereafter. Any unused credit can be carried forward, up to eight years. Those with eligible project costs of $20,000 or less may take the tax credit in one year.  
 
Under the pass-through option, a project owner may transfer a tax credit to a pass-through partner in return for a lump-sum cash payment (the net present value of the tax credit) upon completion of the project. The Pass-through Option allows non-profit organizations, schools, governmental agencies, tribes, other public entities and businesses with and without tax liability to use the Business Energy Tax Credit by transferring their tax credit for an eligible project to a partner with a tax liability.  
 
Projects that use solar, wind, hydro, geothermal, biomass, or fuel cells (renewable fuels only) to produce energy, displace energy, or reclaim energy from waste may qualify for a tax credit. Renewable resource projects must replace at least 10 percent of the electricity, gas or oil used. The energy can be used on site or sold.  

The Oregon Department of Energy administers this program.  

Residential Energy Tax Credit

Homeowners and renters who pay Oregon income taxes are eligible for the Residential Energy Tax Credit if they purchase premium-efficiency appliances, heating and cooling systems, duct systems, closed-loop geothermal space or water heating systems, solar water and space heating systems, photovoltaics, wind, fuel cells, and alternative fuel vehicles and charging or fueling systems. This tax credit was enacted by the legislature in 1977 and became effective beginning with tax year 1978.  
 
Photovoltaic systems are eligible for $3 per peak watt, up to $1,500. Closed-loop geothermal systems for space or water heating, solar space and water heating systems, wind systems, and fuel cells are eligible for a credit of 60 cents per kWh saved during the first year, up to $1,500. Spa and pool heating systems are eligible for a tax credit of 15 cents per kWh saved, up to 50% of the cost, with a maximum tax credit of $1,500.  
 
Contact the Oregon Department of Energy for more information. 

Renewable Energy Systems Exemption

Oregon’s property tax exemption states that the added value to any property from the installation of a qualifying renewable energy system not be included in the assessment of the property’s value for property tax purposes. Qualifying renewables include solar, geothermal, wind, water, fuel cell or methane gas systems for the purpose of heating, cooling or generating electricity. This exemption is intended for end users and does not apply to property owned by anyone directly or indirectly involved in the energy industry. For more information contact the Oregon Department of Energy.

Small Scale Energy Loan Program (SELP)

The Oregon Small Scale Energy Loan Program (SELP) is administered by the Oregon Department of Energy and was created in 1981 after voters approved an amendment to the Oregon Constitution in 1980 authorizing the sale of bonds to finance small-scale, local energy projects. The funding source is unlike most other state renewable energy loan programs, which are funded by revolving funds. The sale of bonds is made on a periodic basis and, occasionally, to accommodate a particularly large loan request.  
 
Loans are available to individuals, businesses, schools, cities, counties, special districts, state and federal agencies, public corporations, cooperatives, tribes, and non-profits. Though there is no legal maximum loan, the largest single loan has been $16.8 million. Generally, loans are set to match the term of the bonds that funded the loans, but loan terms may not exceed project life.

For more information contact the Oregon Department of Energy. 

Ashland - Net Metering
In 1996, the City of Ashland enacted a net metering law establishing a simple grid interconnection policy. It encourages the adoption of solar energy systems by allowing net metering and committing the City to purchase, at full retail price, up to 1,000 kWhs of excess electricity per month from small wind or solar energy systems.

For more information contact the Ashland Electric Utilities Department.

The US Department of Energy has produced wind resource maps for each state. The map for Oregon can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for Oregon. 

You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL).

The American Wind Energy Association provides a list of wind turbine manufacturers. For a list of wind turbine installers in your area, please contact the manufacturers. 

For wind resource maps contact the Wind Powering website. 

Source Guides offer a list of renewable energy companies in each state.  To see Oregon businesses visit their website.

You can find information on Oregon utilities on the Oregon Public Utilities website. 

Carel DeWinkel
Oregon Office of Energy-Conservation Division
625 Marion St NE Suite 1
Salem, OR 97301
Phone: 503-378-6099
Fax: 503-373-7806
carel.dewinkel@state.or.us 

The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.

The Oregon State Wind Working Group was formed under Wind Powering America to identify specific state concerns, barriers, and obstacles to wind development in Oregon. The working group is a collaboration of government agencies, nonprofit organizations, businesses, and industries interested in wind development. For more information contact the website above.

BEF - Renewable Energy Grant

Using revenues generated from the sales of Green Tags, Bonneville Environmental Foundation (BEF), a not-for-profit organization, accepts proposals for funding for renewable energy projects located in the Pacific Northwest (OR, WA, ID, MT). Any private person, organization, local or tribal government located in the Pacific Northwest may participate. Projects that generate electricity are preferred. Acceptable projects include solar photovoltaics, solar thermal electric, solar hot water, wind, hydro, biomass, and animal waste-to-energy.  
 
BEF may deliver funding through various means, including grants, loans, convertible loans, guarantees, and direct investments in renewable energy projects. BEF renewable energy grants and investments may range from a few thousand dollars for small installations, to significant investments in central station grid-connected renewable energy projects. If a BEF grant is requested for a generating project, the BEF share will not exceed 33% of total capital costs, and 0% of operating costs.  
 
To inquire about funding for a project, please visit the BEF web site and download information regarding the submittal of a Letter of Inquiry.  

The Central Oregon Renewable Energy Economic Development (COREED)

COREED is a collaborative effort between 3E Strategies and the Central Oregon Intergovernmental Council. Goals of the project include:

• Maximize Synergy, Minimize Duplicated Effort;

• Leverage and Attract More Funding for our Work;

• More Bang from our Awareness and Outreach Buck;

• Clean Energy Jobs for Central Oregon

These goals will be achieved through the provision of the following services:

• Project coordination services to catalyze and facilitate communication between and among diverse renewable energy industry sectors, including informal networking events and a project web site;

• Assisting partners in navigating financial opportunities and legal requirements for establishing renewable energy projects;

• Acting as a liaison between the Central Oregon renewable energy industry and local, state, and federal agencies and elected officials;

• Implementing bi-annual Central Oregon renewable energy industry forums to develop benchmarks, record progress, and share information;

• Education, outreach, and marketing campaign;

• Marketing and business development assistance;

• Targeted workforce development as needed;

• Research and development assistance as needed.

Information will be gathered into a web site and hard copy formats, including resource assessments, project information, event schedules and outcomes, tools and resources available to develop renewable energy, etc.

For more information visit the COREED website.

The Oregon Solar Energy Industries Association (OSEIA)

OSEIA is a non-profit organization consisting of contractors, architects, engineers, utilities, consultants, students, non-profit organizations, and the Oregon Department of Energy. OSEIA is dedicated to promoting the benefits of renewable energy and to developing a strong local industry able to offer high quality installation and professional services to homeowners and businesses.  For more information visit OSEIA's Homepage.

Renewable Northwest Project's (RNP)

In 1994, a broad coalition of public-interest organizations and energy companies created the Renewable Northwest Project (RNP) to actively promote development of the region's untapped renewable resources. RNP has proven to be a forceful advocate for expanding solar, wind and geothermal energy in the Northwest.  For more information visit the RNP website.

The NW Energy Coalition (NWEC)

NWEC is an alliance of more than 100 environmental, civic, and human service organizations, progressive utilities, and businesses in Oregon, Washington, Idaho, Montana, Alaska and British Columbia. NWEC promotes development of renewable energy and energy conservation, consumer protection, low-income energy assistance, and fish and wildlife restoration on the Columbia and Snake rivers.  For more information visit the NWEC homepage.

Northwest Sustainable Energy for Economic Development (Northwest SEED)
Northwest SEED builds partnerships to mobilize consumers and maximize local benefits from harvesting "home grown" energy resources - wind, solar, biomass, geothermal, low-impact hydro, conservation, and bio-based products - while maintaining reliable electric service and creating new revenue streams and high quality jobs throughout the Pacific Northwest. Modeled on High Plains SEED, Northwest SEED supports and develops creative programs, policies, and financing approaches to build rural economies and meet the region's power needs through affordable, distributed "green" generation. For more information visit the Northwest SEED website.

Last Updated: April 2005

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