(1) Subject to ARM 42.29.111, credits or expenditures for renewable resource projects include, but are not limited to:

(a) photovoltaic conversion;

(b) solar thermal applications;

(c) geothermal projects;

(d) wind power projects and applications; and

(e) micro hydro projects that are on streams outside protected areas as defined by the northwest power planning council or state or federal law, or that are irrigation ditch projects.

(2) The amount of credit that may be claimed for a purchase from another party of electric energy generated from a renewable resource is the difference between the cost to the credit claimant for the energy from the renewable resource and the cost of the next best alternative known to and available to the credit claimant at the time the credit claimant committed to purchase energy from the renewable resource.

(3) The amount of credit that may be claimed for a renewable resource developed by the credit claimant is the difference between net present value cost of the renewable energy and of the next best alternative for the provision of electric service known at the time of project inception and calculated over the expected life of the project.