Utility PSE has been using rebates on renewable energy equipment and net metering - which reimburses individuals or companies for excess electricity that is sent to the grid -- as clean energy incentives.

PSE's new Renewable Energy Advantage Program (REAP) pays between 15 to 54 cents for each kilowatt-hour (kWh) generated up to a limit of $2,000 per year. The utility will also pay retroactively dating back to July of 2005.

Power companies benefit from these programs because cutting back the demand during peak hours enables them to avoid using their oldest and dirtiest generating facilities. Relying on the oldest technology makes it more challenging to comply with state and federal clear air regulations.

By paying per kWh, PSE provides an ongoing incentive that will spur interest in renewable energy adoption. This system works well in Germany where the government subsidizes based on production, not just the initial investment, and solar installations are going through the roof, so to speak. Congratulations to PSE and its renewable customers for doing their part.