In a previous post, I described an upcoming program in Oregon that would pay solar power users up to six times the going rate for electricity to install photovoltaics on their homes. The program opened for registration at 8 am on Thursday, July 1, 2010, and ran out of allotments in 15 minutes, according to The Oregonian. “People compare it to getting tickets to a big rock show,” said Tom Gauntt, a Pacific Power spokesman. “We believe we have 75 good applicants.”
But now comes the bad news: some of the hidden costs of the program are coming out. The Oregon Public Utility Commission, which authored the program, held meetings as late as Monday with contractors and installers trying to explain all the ins and outs. For example, the monthly checks homeowners get from their utilities, at as much as 65 cents per kilowatt hour generated, are taxable. Also, solar systems have to be insured for $1 million, and an extra power meter is required, which costs $10 a month.
According to Jonathan Cohen of Imagine Energy, a Portland solar installer and consultant, a 3 kilowatt system would cost a homeowner about $3,000, even with the new incentives. Of course, all this excitement is great, but he hopes that applicants don’t develop sticker shock once they see how much alternative energy costs.
During this first of eight enrollment periods over the next four years, Pacific Power approved about 75 applications, Portland General Electric 97, and Idaho Power, who’s Oregon customers are eligible for the program, approved 30 projects in a little over two hours. Once the applications are approved, homeowners have a year to have the system installed. If they decide not to install solar, their initial deposits are not refundable.
The next enrollment for the program will be October 1, 2010. It will be interesting to see if it is as popular the second time around, when there is more time to get information out to the public. Information on the program is available on the Oregon Public Utility Commission web site.
Photo courtesy of Andreas Demmelbauer, through a Creative Commons License.
