In a state known for its majestic woodlands and a longer rainy season than most states in the U.S., Oregon has become a pioneer of the incentive to go “green.” It’s hard to believe that solar power is catching on so strong in such a generally overcast state, but Oregon is actually one of the leaders in promoting green technology.
In the past few years, a lot of pilot programs have been carried out in Oregon including one that started this year, which will produce 25 megawatts of solar energy, powering approximately 2,500 homes.

Encouraging its residents to convert to renewable energy, the Oregon Public Utilities Commission (OPUC) has gotten the green light to offer a payment plan to those people who have solar panels which contribute to the regional power grid. Under the house bill 3039, passed in 2009, residents will receive a fixed rate of roughly $.55-$.65 per kilowatt hour they contribute.

Commission Chairman Ray Baum said, “While Oregon may not be the first state that comes to mind when you think about solar, I believe this state has a lot of potential, and these pilot projects will show us if we can encourage the use of this renewable resource in a cost effective way.”

Right now, the OPUC is monitoring the pilot every 6 months to regulate the rates at which they will eventually be paying the residents.

“We are trying to strike a balance between providing an incentive for solar development, while at the same time keeping an eye on controlling utility costs,” said Baum. “If the initial rate is set too low, customers may be reluctant to sign up.”

If the pilot is a success, the state will implement payment across the board to homes, businesses, and commercial energy producers. The bill guarantees at least a 15-year payment plan that won’t touch tax dollars. Rather, the OPUC will pay residents who are involved.