Kettle Foods

Another Oregon company has taken a similar approach, albeit at a larger scale. In September 2003, Salem-based Kettle Foods installed a 114-kW of PV panels on the roof of their processing plant and on the roof of their office headquarters. The idea originated from members of management and the Board of Directors who wanted to reduce electricity purchases and improve the company's commitment to sustainability.

As noted in the case study (see below), the project was approved for the following reasons: (1) the system received solid commitment from Kettle Foods leadership, (2) the system promised an acceptable rate of return (thanks to a combination of government incentives, tax credits and estimated costs savings), and (3) at the time when the system was being considered, no other critical capital outlays were required.

 Here's a brief overview:

            $675,000 total costs

            Energy Trust of Oregon incentive: $112,000

            Oregon Business Energy Tax Credit: $235,705

            Federal Energy Tax Credit: $56,860

            Oregon depreciation value: ~$35K

            Federal depreciation value: ~$182K

            $8,400 costs savings per year

            Rate of return: ~7%       

For more details, see the Kettle Foods case study (PDF) provided by the Energy Trust of Oregon. A general lesson: even small companies can benefit from reduced electricity costs, government incentives and positive PR. As these case overviews demonstrate, you don't have to be a corporate giant to leverage the benefits of solar energy.

The experiences of Pacific Botanicals and Kettle Foods are not limited to Oregon. As interest in renewable energy has picked up in recent years, an increasing number of state governments are increasing efforts to provide support -- both financial and tax-based -- to businesses (and residents) that install renewable-energy systems. Without meaningful support from the government, solar energy remains more expensive than conventional energy that you purchase from the utilities.

As such, it's important to know what types of programs are available in the state in which your company would install the system. A good place to start for more info is the Database of State Incentives for Renewables & Efficiency. But be sure to check back with us, as we're expanding our map of U.S. incentives to include information incentives for commercial solar applications. And, as always, feel free to contact us with any questions you may have. 

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