Conservation/Environment

Chelan County PUD customers who produce energy for SNAP are helping grow a new, renewable resource to complement our already abundant hydropower. Interested in generating solar, wind or other renewable energy at your home, business or agency for sale to PUD customers? Read the Frequently Asked Questions below, then visit the Producer's Checklist in the "Quick Links" box at right.

• What are the basic guidelines for becoming a SNAP producer?
• How are SNAP producers paid?
• Is there another source of payment for SNAP producers?
• What about tax credits?
• How much does it cost to set up a system?
• Is there a way to estimate my return on investment?
• How can I purchase solar or wind equipment?
• What equipment and installation standards must be met?
• What other costs are there?
• What if I just want to put up a solar or wind power system for my own use?

What are the basic guidelines for becoming a SNAP producer?
Participation in the Sustainable Natural Alternative Power (SNAP) program is available to Chelan County PUD customers with system generating 25 kilowatts or less. Most SNAP producers are generating solar power, but these renewable options also are eligible for the program: wind, geothermal energy, landfill gas, wave or tidal action, gas produced by the treatment of wastewater, qualified hydropower, or biomass energy based on solid organic fuels from wood, forest, or field residues or dedicated energy crops.

How are SNAP producers paid?
Producers are paid once a year for the power they generate from a pool of funds created by customer contributions. The amount paid by Chelan County PUD to individual SNAP producers depends on the total contributed to the program by PUD customers and the total generated by all SNAP producers. The greater the amount contributed by SNAP supporters, the greater the amount that will be distributed among SNAP producers.

For example, if a SNAP producer generates 1 percent of the total SNAP power produced, and SNAP purchasers contributed $40,000 to the SNAP fund, then the SNAP producer would receive an annual SNAP payment of $400 ($40,000 times 1 percent). (These payments are only estimates. Chelan County PUD cannot guarantee the amount of revenue producers will receive from installing a SNAP generator.)

SNAP producers also receive from the PUD 75 percent of the Dow Jones Mid-Columbia off-peak wholesale power rate for the power they produce.

Producers are paid once a year, on or before April 21 (Earth Day). The following is a breakdown of annual payments since the program's inception:

 

Period                 SNAP Income     Production (kWh)       Annual Payment           
2001-02                 $2,379                     1,586                      $1.50 /kWh
2002-03                 $35869                  30,722                       $1.17 /kWh
2003-04                 $26,298                 34,329                       $0.77 /kWh
2004-05                 $30,171                 64,840                       $0.47 /kWh
2005-06                 $28,157                112,840                      $0.25 /kWh
2006-07                 $28,790                136,065                      $0.21 /kWh
2007-08                 $27,959                113,498                      $0.25 /kWh
2008-09                 $26,189                117,120                      $0.22/kWh   
 

Is there another source of payment for SNAP producers?
In addition to the SNAP program, solar and wind power producers in Chelan County  qualify for the state's renewable energy production incentive program. The state's incentive program allows the PUD to pay each solar and wind power producer in the county up to $2,000 per year. The amount of the production incentive depends on the amount of solar and wind energy produced, and whether the equipment that produced the energy was manufactured within Washington state. Solar producers using solar modules and inverters manufactured in Washington state can receive up to $0.54 per kWh. If just the inverter is made in Washington, the solar producer would receive $0.18/kWh. Energy generated with modules and inverters manufactured outside Washington would receive $0.15 per kWh.

Currently there are inverter manufacturers but no modules; modules are under development and are not yet available. Producers are limited to waiting for a module manufacturer to come to Washington, or they can install the system to receive the $0.18/kWh. Specific details on the state production incentive can be found in the Renewable Energy System Cost Recovery Question and Answer brochure and the Washington Administrative Code prepared by the state Department of Revenue.

What about tax credits?
The American Recovery and Reinvestment Act of 2009 extended many consumer tax incentives originally introduced in the Energy Policy Act of 2005 (EPACT) and amended in the Emergency Economic Stabilization Act of 2008 (P.L. 110-343). Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30 percent tax credit for systems placed in service before December 31, 2016. Updated information is available on the the Energy Star Web site.

How much does it cost to set up a system?
Randy Brooks, owner of Brooks Solar in Chelan, says $10 to $12 per watt installed is a good estimate for a grid-tied system without batteries. With batteries for storing power, costs go up by about 30 percent. Brooks generally recommends that grid-tied customers set up a system that will earn about as much in incentives annually as they pay for electricity. That is usually a 1.5 kW (about $15,000) system. The smallest system recommended is 700 watts (about $7,000) because that is the smallest grid-tie inverter available.

Is there a way to estimate my return on investment?
The annual production incentive can be estimated by multiplying the system rating times the number of full sun hours of the area where the solar system will be installed. Eastern Washington receives about 1,200 full sun hours per year. Annual income for a 1,000 watt (1 kilowatt) system using Washington-made solar modules would therefore range from:

Estimated Annual Income with Washington-made inverter, but not Washingtonsolar modules:
1 kW x 1200 hours/Year x State Incentive, $0.18/kWh = $216/Year

Approx. Simple Payback = ($7,000 - $2,000 tax credit) / $216/Year = 23 years

Estimated Annual Income with Washington-made solar modules & inverter:
1 kW x 1200 hours/Year x State Incentive, $0.54/kWh = $648/Year

Approx. Simple Payback = ($7,000 - $2,000 tax credit) / $648/Year = 8 years

Note that Washington's production incentive goes until 2014 and does not include additional payments from Chelan County PUD's SNAP program, which runs until 2012.

SNAP payments have been as follows:
2002 - $1.50/kWh
2003 - $1.20/kWh
2004 - $0.74/kWh
2005 - $0.46/kWh
2006 - $0.25/kWh
2007 - $0.21/kWh
2008 - $0.25/kWh

How can I purchase solar or wind equipment?
Producers purchase equipment directly from retailers. Local retailers include:

Brooks Solar
Randy and Anne Brooks
Chelan, WA
(509) 682-9646
info@brookssolar.com
Brooks Solar web site

Enviro-Safe
Phil Glass
Wenatchee, WA
(509) 663-3296
envirosaf@aol.com

AFT Solar
Arnold Techamivol
Wenatchee, WA
(509) 607-2343
arnoldt_is_away@hotmail.com

What equipment and installation standards must be met?
The maximum SNAP project that may be interconnected with the distribution system is 25 kilowatts. Click here for a copy of the interconnection requirements for SNAP.

What other costs are there?
Customers are responsible for the cost of connecting their SNAP generator to Chelan County PUD’s distribution system. The connection fee is $100 and includes the cost of installing a meter. There is also a one-time account service charge of $10 and a monthly meter fee of $3.65. (The meter fee will be deducted from the annual payment mailed to SNAP producers.)

Line extension fees, if any, will vary depending on the distance to the nearest PUD facilities.

SNAP producers must obtain an electrical permit from the City of Wenatchee (if within city limits) or the state Department of Labor and Industries. The city or county building and planning departments may also require a building permit. Call the appropriate jurisdiction to discuss your project.

What if I just want to put up a solar or wind power system for my own use?
A net metering program is available to PUD customers who have an electric generator that has a nameplate capacity of not more than 100 kilowatts. Customers must sign a Power Purchase and Interconnection Agreement with the PUD allowing them to interconnect to and operate in parallel with the PUDelectric distribution system. The PUD’s charges for electric energy are adjusted for customers who participate in this net metering program.