Volumetric Incentive Rates & Payments Program
| Program Type | Feed-in Tariff (Performance-Based Incentive) |
|---|---|
| Technologies | Photovoltaics |
| Amount | Payments between $0.65 per kW hour and $0.55 per kWh produced |
| Required Documentation | Contract with utility |
| Official Web Site | http://energytrust.org/library/resources/FIT_FAQ.pdf |
The Oregon Pilot Solar Volumetric Incentive Rates & Payments Program—the name just rolls off the tongue—is a feed-in tariff program that customers of the state’s three investor-owned utilities—PGE, Portland Power, and Idaho Power—are eligible to enroll in. The program pays customers for generating PV power. Under the first-come, first-serve program, customers enter into a 15-year contract with their utility to purchase all the power generated by their PV system at a rate set when they sign the contract. If the person or business moves during that period, the subsequent building owner gets any payments for energy produced.
The program will accept a total of 25 MWs of distributed generation, divided up among the affected utilities. Under the program, Idaho Power will add 400 kWs of residential PV, Pacific Power will add 9.8 MWs and PGE will add 14.9 MWs. The additional PV power is being added at a rate of 6.25 MWs per year. The largest installations eligible to receive the incentive are 500 kW PV systems. Of the 25 MW cap, 20 MWs are reserved for systems under 100 kW in size. Of that, 12 MWs are reserved for residential solar installations and 8 MWs for commercial.
The amount paid for the feed-in tariff depends on geographic location and system size, with systems up to 100 kW in size receiving the highest incentives. Here are the incentive levels for customers with smaller PV systems, as of September 2010:
• $0.65 per kWh generated for Pacific Power and PGE customers in the counties of Benton, Clackamas, Clatsop, Columbia, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Washington, and Yamhill.
• $0.60 per kWh generated for Pacific Power and PGE customers in the counties of Coos, Douglas, and Hood River and Pacific Power customers in the counties of Gilliam, Jackson, Josephine, Klamath, Morrow, Sherman, Umatilla, Wallowa, and Wasco.
• $0.55 per kWh generated for Idaho Power and Pacific Power customers in the counties of Baker, Crook, Deschutes, Jefferson, Lake, Malheur, and Harney.
Systems up to 100 kW are paid out under a net-metering-like portion of the program. However, unlike most net-metering programs, system-owners are paid for all energy generated by the system—including that used by the customer onsite. To keep enrolled customers from using excess energy that otherwise would go to the grid—creating a larger payment to the system owner—systems are sized to meet average electric consumption of similar-sized buildings or industries. Under the program, PV-system owners still pay the utility for the power they use, but then are compensated at the rates listed above.
To apply for the program, Oregonians must check with their utility prior to installing the system to make sure they’re still eligible to sign up. The customer must have the system installed by a contractor in the Energy Trust’s Trade Ally Network. A second meter will be installed to measure the generation of the PV array. And the system must be installed within a year of applying for the incentive program.
