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 Benefits to Your Business

Environmental responsibility and stewardship are important to many people. A solar system not only contributes to a cleaner and healthier environment, it presents a powerful clean energy commitment to your customers and the public. This has a tangible and increasing effect on their buying decisions, their loyalty, and future referrals.

By integrating a solar energy system into your business property, you will set your business apart from the norm, and be able to take advantage of very significant financial incentives.


Financial Incentives

Energy Trust of Oregon (ETO)

For Pacific Power: first 30kW $1.25 per watt, next 70kW $1.-1.25 per watt up to $100,000.  PGE customers are eligible for an additional $0.25 per watt bonus, up to $125,000. Solar Ki enables this amount to be taken directly off the total system cost, providing you with an immediate benefit.   

Oregon Business Energy Tax Credit (BETC)

Up to 50% of the eligible installed system cost. For investments over $20,000 credit is claimed over 5 years. Eligible cost may be capped. This is based on the system cost before the Energy Trust incentive.

U.S. Federal Investment Tax Credit

Up to 30% of the installed system cost, before EnergyTrust incentive.

Modified Accelerated Cost Recovery System (MACRS) 

Your business may be able to recover investments in solar systems through rapid depreciation (5 year)  deductions on federal tax returns.

State of Oregon Depreciation 

Like the Federal MACRS above, you may be able to take a rapid 5 year depreciation on state tax returns.

Green Tags

Green Tags are certificates that represent the environmental benefits from a specific amount of electricity from solar panels (or other renewable sources.Last year in Oregon, they were selling for approximately $.05 per kWh of energy produced, but the market may change. If the EnergyTrust subsidizes the cost of your system, green tag ownership will be transferred to them after 2 years. 


  


Example Costs * (for Pacific Power , Willamette Valley)
                                                 Size:       3000 W        5000W

Installed System Cost (assumes $9/W) $27,000      $45,000
EnergyTrust Incentive                    -       $   3,750     $  6,250
Upfront cost to business                  $23,250     $38,750

NPV of All Tax Benefits                 -        $21,220     $35,370
(includes estimated Oregon BETC,                  
 Federal Investment Credit, MACRS depreciation,
 State of Oregon Depreciation)

NPV Operating Costs
    (insurance, maintenance)         +       $  1420      $ 2370

Net system cost to owner               $  3,450     $ 5750

20 yr NPV energy savings               -    $  3,230     $ 5370
NPV optional green tag revenue       -    $    300      $   500

Final net system cost to owner  - ( $    80)      ($  120)

* Price highly dependent on site, existing electrical system, and system design.

Assumptions: 
  NPV discount rate of  8% (required return-on-investment)
   Federal Tax Rate 34%; State Tax Rate 9%;
   Inflation  rate:2.5%; Energy cost $.08 /kWhr
   BETC rate 50%; Green tag value $0.05/kWhr
   Full Solar Access

NOTICE:  This example assumes the Energy Trust incentive is taxable.  This analysis does not constitute tax advice; a business should consult its own tax advisor to analyze the tax impact of an investment in a solar electric system.



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