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For Immediate Release:
2005-08-06
For More Information:
Contact Jeremiah Baumann
(503) 936-3200

In Final Hours, Legislature Expands Solar Eenergy Incentives

As the new home of OSPIRG's environmental work, Environment Oregon can be contacted regarding this news release.

SALEM—As the final hours ticked off the clock, a small but noteworthy provision to expand the use of solar energy in Oregon made the final list of bills enacted by the 2005 Oregon legislature. The measure quadruples the size of a solar electric system for which a owner can earn a tax credit.

“Legislators from both parties embraced a clean energy future for Oregon,” said Jeremiah Baumann, OSPIRG’s clean energy advocate. “Solar energy not only cuts global warming pollution from our energy supply, but also boosts Oregon’s economy by replacing out-of-state fossil fuels with homegrown energy.”

Oregon gets enough sunshine to power all of its energy needs. Southern, Central, and Eastern Oregon get as much sun as Southern California, and even our rainiest areas get more sunshine than Germany, one of the current world leaders in solar power generation. Oregon currently ranks 9th for share of the solar energy market, but with worldwide demand at all-time high, many states, including California and Washington, are moving dramatically to expand solar energy incentives and attract industry to expand their share.

Under current Oregon law, homeowners earn a tax credit $3 per watt of solar generating capacity they install and they can install up to 500 watts in a given year, for $1,500 tax credit. However, many solar electric systems are larger than 500 watts, meaning homeowners can only receive partial credit. The legislature lifted the ceiling to 2000 watts so that homeowners can get full credit for larger systems. To save the government money, homeowners would take the $6,000 in tax credits over four years.

Jon Miller, executive director of Oregon Solar Energy Industries Association, called the measure “an integral part of Oregon’s strategy to attract renewable energy manufacturers to Oregon and create local clean energy jobs.” He said the legislature’s move “takes solar energy seriously and shows an understanding that jobs, economy, and environmental responsibility can work together for the benefit of all Oregonians.”

Senator Ben Westlund (R-Bend) and Frank Shields (D-Portland) spearheaded the effort to pass the solar tax credit expansion, which passed as part of a bill that also ultimately contained larger tax packages, including the provisions connecting Oregon’s tax policy to the federal tax code. OSPIRG worked with Oregon Citizens Utility Board and Oregon Solar Energy Industries Association to support the bill.