Solar Tax Credits and Incentives Debated in Oregon

Mt. Hood, Oregon

As a resident and taxpayer of Oregon, I have always paid close attention to proposed tax legislation.  I am not shy to jump into the debate regarding new taxes, either.  Of course, because I am a solar power proponent, I was particularly interested in a recent show on Oregon Public Broadcasting (OPB) on which state solar tax credits and incentives were debated.

As part of Congress’s $700 billion bailout, federal solar tax credits were extended.  Subsequently, Oregon Governor Ted Kulongoski announced that he wanted to expand state renewable energy tax credits in order to help address global warming.  As with many political moves, Kulongoski’s statement ignited a newsworthy debate in Oregon regarding solar tax credits and incentives.  The fundamental question at issue is whether consumers should be taxed to provide incentives to solar project developers.  Who should pay for renewable energy projects?

Blue skies in Oregon

Cascade Policy Institute, a right-leaning organization, claims that solar tax credits provide “winners” and “losers” and ultimately reward the wrong technologies.  Its energy expert, Todd Wynne asserts that, if people want to invest in renewable energy options, they can check the “green power” box on their utility bill (for example, Pacific Power has a “Blue Sky” program that costs an additional $1.95/month for most consumers).  Wynne says:

“Citizens are showing that they don’t want to pay more for power, even though there’s these supposed environmental benefits for renewable power. They’re showing by action they don’t want it, however, the government mandates exactly what the people don’t want.”

Also opposed to solar tax credits, but for different reasons, is Tax Fairness Oregon.  Its representative, Kris Alman, states that government should invest in renewable energy projects, but believes that solar tax credits unfairly benefit investors.  Alman observed:

“If we’re using our tax and ratepayer dollars, and they’re getting more into investor hands, as a sure-fire deal as something they’re going to win as an investment, yet what we’re supposed to say is ‘it’s okay.’ That to me doesn’t make sense because in the end, we should be getting something more than a good green feeling out of this.”

Crater Lake National Park, Oregon

She does agree with Solar World and other industry leaders’ proposal to allow consumers to sell back excess electricity generated by solar panels to utility companies.  Currently, Oregon residents can get credit on their utility bills, but cannot sell extra energy back to utilities for a profit.  A pilot program was announced by Kulongoski, and makes perfect sense to me!

“This pilot program will provide incentives to homeowners and businesses that conserve part of the solar energy they produce, by allowing them to put the energy they conserve back into the grid. I believe this program will significantly accelerate Oregon’s use of solar energy.”

The only “hitch,” if you will, is that the entire United States grid system would have to be standardized to allow the sell-back of excess solar energy generated by homes and businesses.  Not only would that require federal legislation, but opposition from many utilities is expected to slow any potential new laws in this regard.

Still, its a new day – a New Year and a new Administration about to take office in Washington, D.C.  Many elected officials are hopeful that, both in Oregon and nationwide, standardized systems may soon be a reality which can provide just the incentives many may need to convert to solar energy.

What do you think about the solar tax credit debate?

Tags: solar tax credits, solar tax incentives, solar world, state of oregon