Energy Trust Commercial Incentives*

You have two options for installing a solar electric system on your property. Your choice will depend on your financial situation and your long term goals.

1. Direct ownership:
   
   Purchase a solar electric system through a contractor and have the system installed on your property. The system will be net metered at your facility so you will enjoy reduced energy costs for the life of the system. The system will be eligible for the Energy Trust incentive if all program rules are met. Consult your tax professional to learn how federal and state tax incentives may apply to your project.
2. Third-party ownership:
   
   Contract with a third-party system owner to install, own and operate a solar electric system on your property. Agree to purchase the electricity generated by the system from the third party. Typically the third-party company you choose to work with will provide a turn-key installation. The amount of initial cost, if any, to your organization depends on the investment and ownership model offered by the third party. The financial incentives will be claimed by the third-party owner of the system. Third-party ownership FAQ.

Consult your tax professional to learn how federal and state tax credits and rules apply to your project. Information does not constitute tax advice and cannot be used to avoid tax penalties.

• Federal Investment Tax Credit:

  30% of eligible installed system cost
  Commercial federal income tax credit
  IRS Form 3468
  Information on Federal Tax Incentives for Solar

• Oregon Business Energy Tax Credit (BETC):

  50% of eligible system cost
  Commercial income tax credit administered by Oregon Department of Energy
  Claimed over 5 years at 10% of eligible cost per year
  May transfer credit to a pass-through partner and receive a reduced payment up front
  Eligible project cost may be capped

• Federal Accelerated Depreciation

  Modified Accelerated Cost Recovery System (MACRS):
  5-year federal depreciation schedule
  Rapid depreciation deductions on federal tax return
  IRS Form 4562

• Oregon Accelerated Depreciation

• You must be an Oregon customer of Portland General Electric or Pacific Power.
• Solar electric systems must be grid-tied and net metered.
• Systems must be installed by an approved Energy Trust solar trade ally contractor.
• Incentive applications must be pre-approved by Energy Trust prior to installation.
• All system components must be new.

Large commercial electricity users who “self-direct” the renewable energy portion of their public purpose charge may receive a reduced incentive. For questions about self-direction, see Self-direction FAQ.

How to apply

Direct ownership

1. Select a contractor to install your solar electric system.
2. Work with your contractor to apply to Oregon Department of Energy for the Business Energy Tax Credit pass-through option.
3. Sign an Energy Trust incentive application (Form 220C) provided by your contractor, who will submit it to us on your behalf.
4. After Energy Trust pre-approves your application, your contractor installs the system.
5. After the installation passes code and Energy Trust inspections, Energy Trust pays the incentive amount directly to you or you have the option to assign payment to your contractor.
6. Consult your tax professional to claim Oregon Business Energy Tax Credit documentation and federal tax credits

Third-party ownership

1. Select a third-party company and sign an agreement with them.
2. Sign an Energy Trust incentive application (Form 220T with Third-Party Ownership Guide) with the third-party system owner and submit to Energy Trust.
3. After Energy Trust pre-approves your application, the third party oversees installation of the system.
4. After the installation passes code and Energy Trust inspections, Energy Trust pays the incentive amount to the third-party owner or its designated payee.
5. The third-party owner will claim all other applicable incentives, including any state and federal tax incentives.

Need financing for your solar project? Energy Trust of Oregon has joined forces with Umpqua Bank to create GreenStreet Lending — an innovative alliance designed to help homeowners and small business owners access affordable financing for energy efficiency upgrades and investments in renewable energy resources, such as solar. GreenStreet Lending offers preferred rates, no closing costs and no loan fees. Learn more at www.GreenStreetloan.com.

Additional rules and limitations (effective January 1, 2009)

Incentive offer is subject to available funding. Energy Trust will commit funds through approved incentive reservations in 2009 up to $1.6 million for projects in Pacfic Power service territory and $6.1 million for projects in Portland General Electric service territory.

Incentive offer is subject to change.

Incentives are available on a first come first serve basis for pre-approved complete applications that have received an incentive reservation. Energy Trust determines incentive eligibility.

If capacity is added at a site in the same or future years, the project may be eligible for additional incentives. Additional incentives plus any previous incentives for the site cannot exceed the maximum incentive limit available for the utility and type of project.

Participants and system owners are eligible for incentives for systems installed at more than one site for the same site owner or lessor based on total system capacity:

• For example, if a project includes two systems, one 50 kW, and one 150 kW, the incentive is calculated based on the total capacity of 200 kW. For a PGE commercial for-profit customer the standard incentive would be $1.15/W or $230,000.
• A separate application must be completed for each site. To apply for a Standard Incentive for more than one site for the same site owner in 2009, contact Energy Trust for the correct incentive rate to include in your applications. To apply for the Multi-site Incentive, the incentive rate, per watt, is fixed for the first 800 kW of total capacity, and the rate can be selected on the application forms.
• Applications for projects that include more than one site must be submitted together, with a cover letter identifying all sites, system capacities and total capacity. If projects are submitted separately, these additional projects will not be eligible for incentives in the same year, but can be submitted in subsequent years.

The Energy Trust solar electric incentives are mandated by Oregon Statute to be used only to fund above market costs. Above market costs are as defined in the Oregon Administrative Rules 860-038-0005 and detailed by Energy Trust Board Policy. For third-party owned projects, Energy Trust defines this to mean that the net present value of the initial energy charge and escalation over the PPA term (see example of a PV PPA vs. at-market energy rate analysis) cannot be less than the retail energy (per kWh charges) rate from the electric utility with a 2% escalation over the PPA term. In addition, Energy Trust may require that a system owner provide pro forma documentation of first costs and operating costs for a system, and reserves the right to adjust incentives if incentives will pay more than above market costs.

Solar electric systems that serve a single residence (single family dwelling, or single family residence in a multi-family building) that are third-party or otherwise commercially owned are subject to rules determined through our residential solar program. Contact Lizzie Rubado our Residential Solar Project Manager (503)-459-4071 for information on how to apply for incentives for that type of system.

Third-party system owners (including ownership through separate business entities created by the developer such as individual LLCs for one or more systems) are limited to 12 active reservations for pre-approved projects.

In addition, incentives are subject to terms and conditions included in the application forms and any supporting agreements, and the Solar Program Guide and Solar Electric System Requirements.