NorthWestern Energy: USB Renewable Energy Fund

NorthWestern Energy (NWE), formerly Montana Power Company, periodically provides funding to its customers for renewable energy projects. In 1997, Montana established the Universal System Benefits (USB) program. The USB legislation requires all electric and gas utilities to establish USB funds for low-income energy assistance, weatherization, energy efficiency activities, and development of renewable energy resources. A typical NorthWestern Energy residential customer pays approximately $1 per month in electric USB charges. About $9 million is collected annually by NorthWestern, and about $1.2 million is used for renewable energy projects.



Most renewable energy projects include a public education or demonstration component to increase awareness of renewable energy. Incentives of $3.00/watt are offered for residential solar photovoltaic (PV) installations up to a maximum of $6,000 per customer; the incentive for wind is $2/watt to a maximum of $10,000 per customer. NorthWestern Energy has developed qualification requirements for dealers and installers of these small scale systems.  In order for a customer to receive the funds, the work must be completed by a NorthWestern Energy qualified dealer or installer. Off-grid installations inside NWE's service territory are not eligible for USB funds.



Residential solar PV installations receive the incentive through a qualified installer.  All other systems must participate in a request for proposal (RFP) process.  A guide to funding renewable energy projects, "Bright Ideas in Renewable Energy", explains the program and the request for proposal (RFP) process. The RFP should be submitted along with a cover sheet and equipment and installation cost information. A subcommittee of non-utility reviewers selects proposals for funding twice per year.