| Incentives align to make solar a reality for nursery |
 |
|
 |
|
|
|
|
Verl Holden stands next to the nursery's solar panels.
|
It’s a typical Oregon spring day, and the clouds move out of the sun’s way for a few minutes. The electricity production ramps up from Verl Holden’s solar photovoltaic system, then as the clouds come back, it goes back down.
“Look at the difference in production,” Holden says, pointing at the meter as the sky gets gray.
Oregon’s gray winter weather may make many people think solar isn’t a practical option in Oregon, but Holden’s project is proof that it is possible. Holden Wholesale growers is in a position to take advantage of several incentives that made the project an excellent investment.
The return on investment is precisely what attracted Holden to the project. “It’s provided a 34% return on my investment,” Holden says. “There aren’t a lot of opportunities out there like that.”
Holden installed a 30-kilowatt solar array on some ground in between his nursery greenhouses. The system feeds power into the grid when it’s generating electricity, and is designed to offset the nursery’s annual electricity use. “It offsets all of our pumps, motors, potting operation, and any other electrical equipment,” says Holden.
Holden’s utility, Portland General Electric, tracks the solar array’s electricity use compared with the nursery’s energy consumption. At the end of the year, the nursery is billed for only the net amount of electricity they use.
Holden is in a perfect position to take advantage of federal, state, and private incentives for his project. Because he is within the service territory of Portland General Electric, his project qualified for incentives from the Energy Trust of Oregon. He also received an Oregon Business Energy Tax Credit for 50% of the project costs, and had the tax liability to use the entire credit. In addition, the nursery had the federal tax liability to use a 30% federal tax credit, and can also take accelerated depreciation credits for 7 years.
“In order to make it work, it helps to be able to use those deductions,” Holden explains. “Even if you need to borrow money up front, you can still be ahead.”
Altogether, the system cost about $235,500. Energy Trust of Oregon covered about $43,500 of the costs, or about 18.5%. The Oregon Business Energy Tax Credit, taken over 5 years, will amount to $74,262. Combined, the federal solar tax credit and accelerated depreciation credits will total $184,500. The panels are projected to save the nursery $2,321 per year in electricity costs.
Holden reports that the system has been very low-maintenance – all they have to do is periodically clean the panels.
“I’m very pleased with it,” he says.
|
|
|
|
