http://www.outerra.com/forum/viewtopic.php?id=201This is, for now, the best topic to answer your basic question. As Raiko said, the fan community is currently working on a FAQ for Outerra to help take the load off the developers. It's a slow process at the moment because the engine isn't currently in a state to address the many and varied interests in it, although it's getting closer, and we're still coming across very unique questions that will have to be addressed in some fashion (every day there is a new and unique question that is not expected or predicted). The fact that the "Game" thread has finally appeared, however, shows the engine is maturing enough to a point where we as a community can, in some small way, help drive the engine ... or more specifically, the game that will be eventually developed to showcase the engine in all its glory. The Game itself is designed to generate interest in the engine, for varied other applications and games. In the end, it's just the first step in other developers taking the engine to the next level, so to speak.
The best answer to your basic question (free, commercial, etc) is best defined as "a little of both." If the devs continue along their indie development plan, there will be a fee, but upgrades will come into the pricing structure as more or less free upgrades (subject to reconsideration, of course ... the game design doc in the thread above explains their initial thoughts much more succinctly than I can). This engine has such a wide-variety of potential applications that it's hard to really pinpoint where it's going at the moment, other than taking in it's simplistic beauty. And, I think and firmly believe, this will be Outerra's single greatest selling point.
So, sit back, join the discussions, offer your ideas (Outerra devs are uncharacteristically open to new ideas), and engage the community.
Out of my 10 years on the internet, with the exception of one or two other website communities, this has been the most pleasurable experience I've had, ever. Cameni and Angrypig, as well as all the lesser known other players in the dev team, have created a wonderful community here.