Published 2:12 pm Tuesday, June 23, 2026
By Michael Kohn
A first-of-its-kind plan to install floating solar panels in an irrigation canal in Central Oregon faces an uncertain future as a federal grant nears expiration.
The North Unit Irrigation District expects a $2.55 million federal grant awarded in 2024 for a floating solar panel demonstration project to expire June 30, district officials said.
“I think it’s a foregone conclusion that it will expire,” North Unit General Manager Josh Bailey said in an email.
The grant, awarded through the U.S. Bureau of Reclamation during the Biden administration, was intended to help North Unit evaluate and develop a system of floating photovoltaic panels on sections of its main canal. The project was envisioned as a way to generate renewable energy, reduce water evaporation and create additional revenue for the irrigation district and its patrons.
The district submitted a grant amendment request in August and September seeking to extend the project’s deadline and adjust its budget, Bailey said. The request was prompted by policy changes under the new administration.
North Unit has continued working with the Bureau of Reclamation, but progress has been slow, Bailey said.
“Unless we receive a response soon, the grant will expire in June, leading to the project’s cancellation,” Bailey said. “This is unfortunate since the project could generate additional revenue for district patrons.”
Bailey said the district has not received written communication regarding the grant’s pending expiration. Instead, district officials were told verbally that the extension request was under review by either the Department of the Interior or the Office of Management and Budget.
In a statement to The Bulletin, the Bureau of Reclamation said the project remains under review.
“The North Unit Irrigation District solar over canals project is currently under review,” the agency said in a statement. “This review is to ensure the project meets the Administration’s goals for efficiency and accountability. We look forward to working further with the irrigation district once the review is complete.”
U.S. Sen. Ron Wyden said his office is working with the North Unit Irrigation District and the Bureau of Reclamation in an effort to prevent the project from being canceled.
“I am aware of the situation between the Bureau of Reclamation and the North Unit Irrigation District, and my office is working with the district and the agency to find a solution,” Wyden said in a statement.
The district serves farmers in Jefferson County and is one of Central Oregon’s largest junior water-right holders. In recent years, North Unit has pursued several projects aimed at improving water reliability and generating revenue, including canal piping, hydropower development and water conservation efforts.
When the grant was announced in April 2024, district officials said the funding would support research and early implementation of a floating solar system capable of generating about 1 megawatt of electricity. The solar panels were planned for wide, slow-moving sections of the district’s canal system near Bend and Redmond.
Before the project stalled, the district completed several key milestones, including cultural compliance work, an archaeological survey and preliminary engineering and design efforts. District officials also worked with federal agencies to develop project specifications and monitoring requirements.
Unlike solar panels mounted above canals, the proposed system would have floated on the water surface during the irrigation season and rested on the canal bottom when water was not flowing.
District officials also envisioned pairing the solar installation with a proposed hydroelectric project on a section of piped canal. Together, the projects could have generated renewable electricity year-round, with hydropower operating during the irrigation season and solar panels producing power during the winter months.
At the time, Bailey estimated that the combined solar and hydropower projects would ultimately require about $40 million in funding.
The North Unit proposal was one of several canal solar projects selected as part of a $19 million federal initiative announced in 2024 to support solar panel installations on irrigation canals in Oregon, California and Utah.
The Trump administration’s proposed fiscal year 2027 budget specifically calls for ending the Bureau of Reclamation’s involvement in projects involving solar panels on water canals, saying the agency should focus on managing water resources in the West.
The budget proposal says the agency should end its “foray into … projects like lining water canals with solar panels.”
Although the floating solar project appears unlikely to move forward under the current grant, Bailey said the district has not abandoned renewable energy development altogether.
“We can explore other options in the future, and I have already had conversations with other entities about resurrecting the project,” Bailey said.
The district is also continuing to pursue hydropower development.
Bailey said North Unit has been working with NLine Energy — an Oregon-based clean energy manufacturer and developer — on a feasibility study examining potential hydropower opportunities within the district’s canal system.
The study has identified several locations that could support hydropower generation, and the work remains ongoing.
Michael Kohn has been public lands and environment reporter with The Bulletin since 2019. He enjoys hiking in the hills and forests near Bend with his family and exploring the state of Oregon.
He can be reached at: 541-617-7818, michael.kohn@bendbulletin.com

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