Solar power in Oregon



Solar power has been growing in the U.S. state of Oregon in recent years due to new technological improvements and a variety of regulatory actions and financial incentives enacted by the state government.

Government policy
The Government of Oregon has taken a variety of actions to encourage solar energy use and manufacturing within the state. A 2017 law states that homeowners associations cannot ban solar panels.

Net metering
The state has a net metering program that allows for large installations of up to 2 MW of on-site electrical generation. A report released in 2009 by the Network for New Energy Choices and Vote Solar gave the state's net metering system an "A" grade, a rating only 9 other states received.

Renewable portfolio standard
The state adopted a Renewable Portfolio Standard (RPS) in 2007 which requires that 25% of Oregon's electricity come from renewable resources by 2025. The RPS was revised in 2009 to include a separate 20 MW solar photovoltaic requirement by 2020.

Construction budget mandate
Passed in the 2007 legislative session, House Bill 2620, requires that public entities such as state and local governments spend 1.5% of the construction budget for new or renovated buildings on on-site solar technologies.

Solar Within Reach
Solar Within Reach is a program through the Energy Trust of Oregon that provides incentives for income-qualified families. Adding a solar power system to your home can greatly reduce your energy bills, and this program is designed to help offset the costs of installing such a system, so you can reap the benefits without a big startup cost.

Oregon Solar + Storage Rebate Program
In 2019, HB 2618 was passed, which created a new ODOE solar rebate program through the Oregon Department of Energy (ODOE). This rebate program allows residential solar energy customers as well as low-income service providers in Oregon to receive rebates for solar energy systems, whether they are stand-alone systems or paired with a solar energy storage system.

Residential Energy Tax Credit
The Residential Energy Tax Credit (RETC) program aims to encourage residents to invest in energy efficient appliances or residential-scale power producing systems such as roof-mounted solar or small wind setups by offering a tax credit that covers a certain percentage of the cost of eligible equipment.

Business Energy Tax Credit
The Business Energy Tax Credit (BETC) program aims to encourage private businesses to invest in renewable energy in Oregon by offering a tax credit that covers up to 50% of eligible renewable projects such as power stations or manufacturing factories with a maximum limit of $20 million per project.

State Energy Loan Program
The State Energy Loan Program aims to encourage investment in energy efficiency and renewable energy production by offering long-term, fixed-rate loans to all types of organizations and individuals with a maximum cap at $20 million per loan. From the time it was first authorized by voters in 1980, the program has made over 700 loans worth a total of $335 million.

Feed-in tariff
The Oregon Legislative Assembly established a feed-in tariff for solar power modeled on feed-in tariffs in Germany, allowing owners of solar installations to be paid for the electricity they produce. On May 28, 2010, the Oregon Public Utility Commission approved the trial feed-in tariff rules. Under the approved rules, residents and businesses who install solar systems can enter a 15-year contract with investor-owned utilities in the state where they will receive guaranteed monthly payments over the life of the contract with rates ranging from $0.55 to $0.65 per kWh. Funding will come from an estimated one half of 1% increase in electricity rates. The trial program ends after four years and the entire project's size is limited to a maximum 25 MW. Program applications are accepted biannually on April 1 and October 1. The final year of the pilot program is 2013.

Manufacturing


Many solar manufacturing companies have chosen to operate in Oregon because of its cheap hydroelectric power which is important for manufacturing and because of its close proximity to California's large market. The inexpensive hydroelectric power has also contributed to the high-tech manufacturing companies located in the state's Silicon Forest as well as several data centers such as Google's Project 02.

Oregon was one of the only three states (along with Michigan and Ohio) to manufacture more than 100 MW of solar panels during 2009. SolarWorld's plant in Hillsboro, Oregon is the largest solar cell manufacturing factory in North America and is planned to produce 500 MW of panels annually by 2012.

Companies
Solar companies with operations in Oregon include, Sunbridge Solar, Precision Solar & Heating, Energy Solutions, Avila Solar Drafting LLC, Solar Plan Sets LLC, Power Northwest, Tesla Solar, Grape Solar, and more.

Solar panels on State Capitol
In 2002 Oregon became the first state to install solar panels on its state capitol building. The solar panels were installed on the Oregon State Capitol building, although they are not visible from the street.

Solar highways


In 2008, the Oregon Department of Transportation announced the completion of a 104 kW solar panel project along the interchange of Interstate 5 and I-205 near Tualatin, Oregon. The project is the first solar highway in Oregon and the first in the United States.

In January 2012, the Oregon Department of Transportation announced the completion of its second solar highway project with a 1.75 megawatt capacity at its Baldock Safety Rest Area south of Wilsonville.

A 165 kW expansion to the first project is under study, as is a potential third solar highway project with a capacity of 3 megawatts at ODOT's maintenance storage facility in West Linn. The 3 megawatt project in West Linn, Oregon would be the largest solar highway in the world, slightly passing the 2.8 megawatt record holder in Germany.

U.S. Department of Energy partnership
Portland, Oregon is one of the 25 cities in the United States Department of Energy's Solar America Cities program. The program's goal is to "rapidly increase the use and integration of solar energy in communities across the country."

Potential generation
Solar energy is the state's most abundant energy resource and estimates have placed the state's potential electricity production from solar power at 68,000,000 MWhs annually, an amount larger than the state's total electricity consumption of 46,457,000 MWh in 2005.