This bill summary was last updated January 28, 2025.
Oregon has previously enacted a bill that promotes community solar projects, as codified in ORS 757.386. This bill amends and adds provisions to that existing law.
Under existing law, the Oregon Public Utilities Commission (OPUC) adopts rules to certify community solar installations, and to incentivize electricity consumers to become part owners or subscribers. Subscribers proportionally lease part of a community solar project for 10 years or more. Under the new bill, the subscribers to the community solar installation may be located within a portion of the electric company’s service territory that is different from the portion where the photovoltaic energy system is installed.
Under existing law, OPUC requires electric companies to enter into 20-year power purchase agreements with certified community solar projects. It also directs the electric companies to credit the electricity bills of owners and subscribers for the amount generated by the community solar project.
The minimum capacity of a community solar project had been set at 25 kilowatts. Under this new bill, a maximum capacity of 5 megawatts is now set as well.
The new bill specifies that, after holding a public hearing, OPUC may impose penalties on electric companies that unreasonably delay connecting community solar projects to the grid.
The new bill specifies that when the total generating capacity of community solar projects exceeds certain caps, an electric company is no longer required to allow more such projects within its service territory. For 2026, electric companies must allow community solar projects to participate within a cap of 4.5% of the electric company’s system peak in the year 2016. For 2027, 2028, 2029, 2030 and 2031 (and thereafter), the respective caps are: 6.5%, 8.5%, 10.5%, 12.5% and 14.5%.