Oregon
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 12/16/2008
| Incentive Type: |
Net Metering |
| State: |
Oregon |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric,
Photovoltaics,
Landfill Gas,
Wind,
Biomass,
Hydroelectric,
Fuel Cells,
Anaerobic Digestion,
Small Hydroelectric
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Fed. Government,
Agricultural,
Institutional
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| Applicable Utilities: | All utilities (except Idaho Power)
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| System Capacity Limit: | 2 MW for non-residential & 25 kW for residential PGE and PacifiCorp customers; 25 kW for non-residential & 10 kW for residential muni, co-op and PUD customers
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| Aggregate Capacity Limit: | No limit specified for PGE and PacifiCorp; 0.5% of utility's historic single-hour peak load for munis, co-ops, PUDs
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| Net Excess Generation: | Credited to customer's next bill at utility's retail rate for IOU customers; varies for muni, co-op and PUD customers
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| REC Ownership: | Customer owns RECs (must be relinquished in exchange for Energy Trust incentives)
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| Meter Aggregation: | Allowed
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Authority 1:
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OR Revised Statutes 757.300
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| Date Enacted: | 9/1/1999; amended, 6/7/2005 |
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Authority 2:
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Or. Admin. R. 860-039
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| Date Enacted: | 7/24/2007 |
| Date Effective: | 7/24/2007 |
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Authority 3:
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Or. Admin. R. 860-022-0075
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| Date Effective: | 11/30/2005 |
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Summary:
Oregon has established separate net-metering programs for the state's primary investor-owned utilities (PGE and PacifiCorp), and for its municipal utilities and electric cooperatives.
PGE and PacifiCorp Customers
The Oregon Public Utilities Commission (PUC) adopted new rules for net metering for PGE and PacifiCorp customers in July 2007, raising the individual system limit from 25 kilowatts (kW) to two megawatts (MW) for no-residential applications. (The rules do no apply to customers of Idaho Power, which provides net metering to Oregon customers pursuant to rules adopted by the Idaho Public Utilities Commission.) The limit on individual residential systems is 25 kW. Systems that generate electricity using solar power, wind power, hydropower, fuel cells or biomass resources are eligible. Net-metered systems must be intended primarily to offset part or all of a customer’s requirements for electricity. Utilities may not limit the aggregate capacity of net-metered systems.
Net excess generation (NEG) is carried over to the customer's next bill as a kilowatt-hour credit for a 12-month period. Unless a utility and a customer otherwise agree, the annual billing cycle will conclude at the end of the March billing cycle of each year. Any NEG remaining at the end of a 12-month period will be credited at the utility's avoided-cost rate to customers enrolled in Oregon's low-income assistance programs. Customers retain ownership of all renewable-energy credits (RECs) associated with the generation of electricity.
The aggregation of meters for net metering is allowed. There is no limit on the number of net-metering facilities per customer, as long as the net-metering facilities in aggregate on a customer's contiguous property do not exceed the applicable capacity limit.
Customers of Municipal Utilities, Cooperatives and People's Utility Districts
Oregon's municipal utilities, electric cooperatives and people's utility districts must offer customers net metering pursuant to OR Revised Statutes 757.300. Systems that generate electricity using solar power, wind power, hydropower, fuel cells or biomass resources are eligible. Net-metered systems must be intended primarily to offset part or all of a customer’s requirements for electricity. The aggregate capacity of all net-metered systems is limited to 0.5% of a utility's historic single-hour peak load.
Net excess generation (NEG) is either purchased at the utility's avoided-cost rate or credited to the customer's next monthly bill as a kilowatt-hour credit. At the end of an annual period, any unused NEG credit is granted to the electric utility. This credit, in turn, is then either granted to customers enrolled in the utility's low-income assistance programs, credited to the generating customer, or dedicated to an "other use."
Net metering is achieved using a standard bi-directional meter. Utilities may not place any additional standards or requirements on customers beyond those requirements established by the National Electric Code (NEC), National Electrical Safety Code (NESC), Institute of Electrical and Electronic Engineers (IEEE), and Underwriters Laboratories (UL). However, utilities may be authorized to assess a fee or charge if the utility's direct costs of interconnection and administration of net metering outweigh the distribution system, environmental and public-policy benefits of allocating costs among its customers.
In July of 2008, the PUC issued a ruling to clarify that third-party investors may participate in net metering, and that a third-party investor’s sale of electricity to a utility customer does not subject the investor to regulation by the commission.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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