Ashland, Ore., develops innovative Solar Pioneers project (7/08)

July 2008

The Achievement

The City of Ashland, Ore., which operates its own municipal utility, has installed a 63.5 kW community solar electric system on its city service center. Ashland residents and businesses may invest in this system by “adopting” solar panels, or portions of a panel –  bringing renewable energy to the community and lowering their electric bills.

The system will consist of 363 solar electric panels rated at 175 DC Watts. Ashland customers can purchase the output of panels for 20 years, and become “Solar Pioneers”: A full panel for $825, a 1/2 panel for $412.50 or a 1/4 panel for $206.25. Each year the City will credit the electric bill of participants for the amount of renewable electricity their panels have generated. The City will be responsible for the maintenance of the system.

The Key Step

To finance the community solar system, Ashland was authorized to issue Clean Renewable Energy Bonds (CREBs). CREB bond holders receive federal tax credits in lieu of interest, enabling Ashland to borrow at a very low interest rate. Ashland also passed through the State of Oregon’s 50 percent solar income tax credit to the Bank of the Cascades who will pay the City 33.5 percent of the system’s installation cost for those credits.

The Benefits

The City of Ashland has encouraged the use of solar energy to generate electricity since 1996.  Although Ashland offers incentives for residents and businesses to install solar systems on their property, many do not have adequate access to solar resources on their own property, or they may not have the financial resources to install a solar electric system of their own. Others may simply prefer to invest in a City owned and operated solar electric system rather than install and maintain their own system.

This community solar system allows them access to clean, renewable energy, which means less energy produced at fossil-fuel based power plants, which are major emitters of carbon dioxide and other greenhouse gases.

[Source: City of Ashland website]