MAKE MORE $ ON SOLAR IN OREGON

What makes the utilities satisfied with this imposition on their business? The state has an RPS, requiring all utilities to produce 25% of electricity from renewables by 2025. Instead of complaining because this new net-metering standard cuts their revenues, the utilities cheer it because it helps them achieve their legislatively-required goals.

Oregon gives businesses incentives for solar energy
Aaron Clark, July 29, 2007 (AP via The World of southwestern Oregon)

WHO
Oregon Public Utility Commission, Lisa Schwartz, senior policy analyst

WHAT
Oregon’s PUC has updated its “net-metering” policy requiring utilities to buy back electricity produced by renewable systems installed at the user’s end. The new rules require the utilities to buy larger amounts of produced power and are expected to incentivize private sector investment in renewable systems, especially solar.

How net-metering" works (click to enlarge)

WHEN
PUC instituted “net-metering” in 2000. The updated policy was approved July 27.

WHERE
Decision made in Portland and applying statewide.

WHY
- The old net-metering rule excluded systems larger than 25 kilowatts, approximately the size of a typical home system but one too small for most businesses. The new rule allows systems as large as 2 megawatts, enough to include even large business systems. Under these rules, it would be sound investing for a business with adequate revenue and space to invest in a large system.
- This will help the state achieve its Renewable Portfolio Standard mandate of 25% electricity from renewables by 2025.
- Additional new provisions: (1) energy producers will be credited at retail, not wholesale rates and (2) energy producers will accumulate credit on an annual, not monthly basis.

Oregon insolation -- it has lots of sun. (click to enlarge)

QUOTES
- Schwartz: “We are going to see a lot larger (solar) systems going in on commercial buildings…The nice thing about this is you have the private sector putting up these facilities that will be providing energy and some capacity, and utilities won't have to put in additional resources.”
- Gail Baker, spokeswoman, Portland General Electric: “It's a good thing for us because it promotes technology and renewables, giving our customers the flexibility to sell that power back into the system…As long as it's safe and reliable for the system, we think it's great.”
- Jeremiah Baumann, spokesman, Environment Oregon: “This kind of policy is critical to making solar energy work because it makes it financially viable for the private sector…This is a policy that if enough big companies with big rooftops decide to go for it, it means solar can be a bigger part of that 25 percent.”