Here are some guidelines to help you determine if generating your own power will fit your budget.
Solar power costs and incentives
Solar systems designed to connect to the electric grid generally cost about $8 to $12 per watt of rated capacity. For example, a 2,000-watt (2 kW) solar system would cost about $16,000 to $24,000.
A variety of incentives are available for solar generation:
- Energy Trust of Oregon: Energy Trust offers a financial incentive between $1.25 and $0.75 per watt, depending on system size and subject to a maximum incentive per host. See list of Energy Trust-approved contractors, which are required for eligibility.
- State: Oregon offers a state solar tax credit of up to 50 percent, with the maximum eligible cost determined differently for electricity vs. water heating.
- Federal: A solar tax credit or grant option is available.
GreenStreet Lending through Umpqua Bank is a financing option for helping you go solar, especially if you don’t have a home equity line of credit. According to Energy Trust of Oregon, GreenStreet Lending products offer low-interest rate financing, have no origination fees or closing costs and have flexible terms when you work with an Energy Trust solar trade ally contractor.
Because of the complexity of various financial incentives, we recommend working closely with your financial professional.
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Wind power costs and incentives
Most wind systems need a generator, an inverter, a tower and other smaller components. A rule of thumb is the average wind speed should be above 10 mph. Generally, wind generators need to be at least 30 feet above buildings, trees and other obstacles to eliminate as much turbulence as possible, and must abide by zoning laws. This means small wind systems are rarely suitable for urban areas and should generally be on at least one acre.
A wind generator with an inverter will cost $2.50 to $3 per watt, not including installation or tower costs. The American Wind Energy Association is a good resource for small wind energy systems.
A variety of incentives are available for wind generation:
- Energy Trust of Oregon: Energy Trust’s Small Scale Wind program provides up to $60,000 to install turbines of up to 50 kilowatts. For incentives related to larger installations, visit Energy Trust’s Commercial Scale Wind program.
- State: Oregon offers a state tax credit for wind systems. Renewable resource projects must replace at least 10 percent of the electricity, gas, or oil used. You can use the state’s calculator to evaluate the costs of a wind turbine installation.
- Federal: The federal government provides a tax incentive for wind turbines 100 kW or smaller, covering 30 percent of the installed cost or $4,000, whichever is less. They also provide production-based tax credits and other financial support from the USDA’s Office of Rural Development.
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Hydro power costs and incentives
Hydroelectric systems are cost effective relative to other types of renewable generation. They typically run 24 hours a day, so a small generator can produce a lot of power.
Hydropower is dependent on water flow rates — gallons per minute — and “fall,” or the distance the water drops, usually measured in feet. Hydroelectric generators for net metering usually need a minimum flow of 12 GPM and a minimum fall of 3 feet. If your site has more than 3 feet of fall, the minimum flow can be as low as 3 GPM (at 200 feet of fall).
The cost of a hydroelectric generator starts at $1,000, not including installation. They also require an inverter, which costs about $1 per watt. Total installed costs of hydroelectric generators are difficult to estimate because of the many variables involved.
See these additional resources on hydropower development:
These incentives are available for hydropower:
- Energy Trust of Oregon: Energy Trust will help fund a feasibility study and provide other incentives.
- State: Tax credits are available to businesses that invest in hydroelectric systems under 25 megawatts. Any Oregon business may qualify for this credit, which covers up to 35 percent of the project cost. Low-interest, fixed rate, long-term loans are also available to businesses and others that develop any size hydroelectric project in Oregon.
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