In 2016, the Oregon State Legislature passed SB 1547 (click here to view the full text) making it legal to build a Community Solar project. Specifically, Section 22.(1) states that:
“Community Solar means one or more solar photovoltaic energy systems that provide owners and subscribers the opportunity to share the costs and benefits associated with the generation of electricity by the solar photovoltaic energy systems.”
What this means is that for the first time in Oregon, communities can pool their resources and build a solar photovoltaic system that is not located directly over their home’s roof, but instead is located at a remote location. This directly benefits individuals who do not have a suitable roof for solar panels because the roof is in the wrong orientation or it is shaded by trees and/or mountains, or because it is too old and the home can not withstand the weight of the panels. A second group benefiting from this piece of legislation is renters — folks who do not own the roof over their heads or live in multi-family buildings.
Solar photovoltaic energy system costs have come down dramatically over the last few years but still remain out of reach for many people. By pooling their resources, SB 1547 allows community members to build a much larger system than each individual would have built on their own. Because of economies of scale, building a larger system is much cheaper — in some cases as much as 50% cheaper or more — than building individual, smaller systems. The result is that a home can meet 90% of its energy needs from solar energy for about half of what it would cost the individual homeowner to install a solar system on their roof. All of a sudden, taking advantage of solar energy is not so far out of reach any more.
At the end of 2019, the Oregon Public Utilities Commission (OPUC) published the final Program Implementation Manual (PIM). This document describes the rules of the road for how to build a Community Solar Photovoltaic Energy System in Oregon. Click here to access the Oregon Community Solar Program website. Click here to access the PIM.
If you are ready, you can get your name on our waiting list. We will contact you to discuss specific needs and to confirm your participation once a project opens up for enrollment.
Here is a list of the most frequently asked questions. Click on each one to see more information.
How Does a Community Solar Project Work?
Are There Any Rules and Restrictions to Community Solar Projects?
What Are the Pros and Cons for Participating in a Community Solar project in Oregon?
How Much Does It Cost to Participate in a Community Solar Project?
How Long Do Solar Panels Last?
Can Low-Income Households Take Advantage of Clean, Renewable Energy?
How Can I Get on a Waiting List for the Next Available Project?
How Does a Community Solar Project Work?
- Community members pool their resources to pay for a large solar photovoltaic energy system that is installed remotely (e.g. on a large roof or lot). Each community member owns a portion of the system.
- The electricity produced by the system flows directly into the grid and is distributed to regular users by the utility company — Pacific Power in our case (aka PAC, PacifiCorp).
- The system owners are compensated by the utility company for the energy produced by the system in the form of energy bill credits against each owners’ home or business power bill.
- Every month, unused credits roll over to the next month’s bill. However, all credits expire every March 31st and the credit accumulation starts over.
In addition to individuals or organizations who own a portion of the system in order to receive bill credits against their home or business’ energy consumption, SB 1547 also allows for the system to be financed by individuals who do not need the energy credits and thus also own a portion (or all) of the system. Instead of receiving energy bill credits against their home or business’ energy usage, these owners sell the energy to other users within the utility company’s territory. The recipients of the system’s energy under this category are called “Subscribers.” Subscribers do not own any portion of the system — they simply purchase energy from the system as if they were purchasing it from the utility company.
Are There Any Rules and Restrictions to Community Solar Projects?
Of course, there are a few rules. Here is a list of the most impactful rules to residents.
- The solar photovoltaic energy system must be built within the territory of Portland General Electric, Pacific Power or Idaho Power. In Southern Oregon, the utility of record is Pacific Power.
- The system must be no smaller than 25 kW and no larger than 3,000 kW.
- Owners receiving bill credits and subscribers purchasing energy from the system must reside within the utility’s territory. Owners who do not receive bill credits are not restricted to living within the utility’s territory.
- No single participant (owner or subscriber) may receive more than 40% of the system’s energy output.
- System ownership can be sold or traded.
- Owners or subscribers may not receive bill credits or purchase more energy than what their home or business consumes on an annual basis.
- A minimum of 10% of the energy produced by the system must be offered to Low Income residential customers and sold at no less than a 40% discount.
- Pacific Power will pay $0.0977 per kWh for the energy produced in 2022 and increases by 2% annually after that (this number is subject to modification by the Oregon PUC).
- System owners qualify to receive a minimum 30% Federal Incentive Tax Credit against the cost of the system.
What Are the Pros and Cons for Participating in a Community Solar project in Oregon?
Pros:
- Hands-off Lifecycle — the participant doesn’t need to get involved with the minutiae of building or maintaining a solar energy system.
- Residential or Business Roof — The condition of your roof, lack of sun or its orientation is not important to the Community Solar project because the system is built elsewhere.
- Less Cost — Because of economies of scale, a Community Solar project will be significantly cheaper on a dollar per Watt basis than building a series of smaller projects adding up to the same size.
- Buying into Community Solar projects qualifies participants for Federal tax incentives — consult your tax advisor for the latest information.
- Mobility — Your ownership or subscription moves with you when your address changes as long as you remain within the utility’s territory and state.
- Transferable — Your ownership in the project can be transferred (e.g. sold, donated, bequeathed, etc.)
- Works for Renters — You do not need to own your home to participate. You can live in a single or multi-family building, as long as you have an account with the utility company.
- Lowers energy costs for Low Income members of your community.
Cons:
- New Business Model — Because this is a new law, there are inherent risks in this type of project.
- Administrative Costs — As opposed to owning your own system on your own roof, there are additional administrative recurring costs imposed by the OPUC to manage these projects.
- Decision-Making Process — Whereas a home owner makes decisions regarding their roof and solar system individually, the decisions made in the Community Solar project are shared, meaning that majority rule will dictate decisions that need to be made in the future.
How Much Does It Cost to Participate in a Community Solar Project?
An average Oregon home requires a 5 kW solar energy system to cover 90% of its energy consumption. A 5 kW solar energy system in Southern Oregon can cost between $15,000 and $20,000 to install, depending on the type of installation and the choice of panels. The cost of a 5 kW portion of a Community Solar project could be as low as $9,000 simply because it is a lot cheaper to build a large system than many smaller ones. After the Federal Incentive Tax Credit, owners can recover their costs in about 10 years. From that point forward their energy is free for as long as the panels continue producing electricity.
How Long Do Solar Panels Last?
Solar panels are expected to become less efficient at transforming solar rays into electricity over time. Most solar panels are guaranteed by the manufacturers for 20 to 25 years, although panels that are now much older than that are continuing to produce clean, renewable energy. The panels we are using for our projects are guaranteed to lose no more than 0.32% efficiency per year — if they lose more than that within the first 25 years of operation, they are replaced by the manufacturer at no cost.
Can Low-Income Households Take Advantage of Clean, Renewable Energy?
Absolutely YES!!! By law, the Oregon Community Solar Program designates that at least 10% of the energy produced by the photovoltaic solar energy system is provided to Low-Income residents. Furthermore, the energy is provided to Low-Income residents at a minimum of 40% discount!!
So, if you qualify as a Low-Income resident (see Oregon’s definition of Low-Income here) receiving an energy bill from Pacific Power, please contact us as soon as possible because we may be able to significantly reduce your energy costs.
How Can I Get on a Waiting List for the Next Available Project?
Getting on a waiting list is easy. Simply SIGN UP and enter your information on our database. That’s it! Alternatively, you can contact us and we’ll get back to you as soon as possible. We’ll be happy to discuss your interest and requirements.
Can I Host a Community Solar Project on My Property?
Residents may own properties within the utility company’s territory that are suitable to host a Community Solar project. These properties could be non-farmable land, multi-family buildings or business properties with large, unencumbered roof spaces facing south and free of shade. Optimally, the property would be located close to an existing substation. Please contact us if you are interested in hosting a project on your property.
Do You Have More Questions?
If you currently receive an energy bill from Pacific Power, we are happy to discuss your particular situation and help you figure out if participating in a Community Solar Project makes sense for you. Please contact us at your earliest convenience and we will set up a time that works for you to discuss this opportunity in detail.