Skip Navigation

The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are! The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
Hawaii

Hawaii

Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 09/08/2014
Program Overview:
State: Hawaii
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Hydroelectric, Small Hydroelectric
Applicable Sectors: Commercial, Residential, Local Government, State Government, Fed. Government
Applicable Utilities:All utilities
System Capacity Limit:100 kW for HECO, MECO, HELCO customers; 50 kW for KIUC customers
Aggregate Capacity Limit:15% per circuit distribution threshold for distributed generation penetration
Net Excess Generation:Credited to customer's next bill at retail rate; granted to utility at end of 12-month billing cycle
REC Ownership:Not addressed
Meter Aggregation:Not addressed
Web Site: http://energy.hawaii.gov/
Authority 1:
Date Enacted:
HRS ยง 269-101 et seq.
6/25/2001 (subsequently amended)
Authority 2:
Date Enacted:
HI PUC Order, Docket 2006-0084
1/13/2011
Summary:

NOTE: Due to extremely high penetration of distributed solar generation on some circuits, the Hawaii  Public Utilities Commission (PUC) has authorized the Electric Company (HECO) to require solar interconnection studies on some circuits. For more information on locations where solar might take additional study, visit the HECO Locational Value Maps page or visit HECO’s website for the latest on net metering changes.  Additionally, Kauai Island Electric Cooperative's (KIUC) net metering program has reached its capacity and has implemented a Net Energy Metering Pilot Program. The Hawaii Public Utilities Commission is currently deliberating about how to address the high penetration of solar.

Eligibility and Availability

Net metering is available on a first-come, first-served basis to residential and "small commercial" customers (including government entities) that generate electricity using solar, wind, biomass or hydro-electric systems. Third-party owned and operated systems are eligible to participate in net metering (leased systems and systems with a third-party power purchase agreements can participate in net metering).  Under the terms of the March 2008 and December 2008 PUC orders, Hawaii's three investor-owned utilities (HECO, HELCO and MECO) and sole electric cooperative (KIUC) have slightly different programs:

  • For customers of Hawaiian Electric Company (HECO), the maximum individual system capacity is 100 kW. The aggregate capacity of net-metered systems is limited on a per-circuit basis to 15% per circuit distribution threshold for distributed generation penetration.  Of this 15% in peak circuit demand capacity, 5% (or 0.75% of overall peak circuit demand capacity) will be reserved for residential or small commercial systems that are 10 kW or smaller.
  • For customers of Hawaii Electric Light Company (HELCO) and Maui Electric Company (MECO), which are both subsidiaries of HECO, the maximum individual system capacity is 100 kW. The aggregate capacity of net-metered systems is limited on a per-circuit basis to 15% per circuit distribution threshold for distributed generation penetration.  Of this 15% in peak circuit demand capacity, 5% (or 0.75% of overall peak circuit demand capacity) will be reserved for residential or small commercial systems that are 10 kW or smaller.
  • For customers of Kauai Island Utility Cooperative (KIUC), the maximum individual system capacity is 50 kW. The aggregate capacity of net-metered systems is limited to 1% of KIUC’s peak demand. Of this 1% limit, 50% is reserved for systems 10 kW or smaller.

Net Excess Generation

The March 2008 PUC order also required each utility to develop a pilot program allowing net metering to a limited number of systems 100 kW to 500 kW in capacity, while allowing for even larger systems "if technically and economically reasonable and practicable."  KIUC currently has a pilot net metering program for systems up to 200 kW.  Under the pilot program, customer-generators will be paid $0.20 per kilowatt-hour (kWh) for a system's net excess generation at the end of each year.  Participants can receive this payment for net excess generation for a 20 year term.  

A customer whose system produces more electricity than the customer consumes during the month may carry forward NEG in the form of a kilowatt-hour (kWh) credit that is applied to the customer's next bill. NEG may be carried over for a maximum of 12 months. At the end of the 12-month period, any remaining customer NEG credits are surrendered to the utility without compensation (unless the customer enters into a purchase agreement with the utility).

History

Hawaii's original net-metering law was enacted in 2001 and expanded in 2004 by HB 2048, which increased the eligible capacity limit of net-metered systems from 10 kilowatts (kW) to 50 kW. In 2005, the law was further amended by SB 1003, which authorized the Hawaii Public Utilities Commission (PUC) to increase certain limits outlined in the law and provided for the carryover of net excess generation (NEG) to the customer's next bill. In March 2008, the PUC issued an order to implement SB 1003. This order generally raised both the individual system capacity limit and the aggregate capacity limit for net-metered systems.  In October 2008, Hawaii's governor; the Hawaii Department of Business, Economic Development and Tourism; the Hawaii consumer advocate, and the HECO companies entered into an energy agreement, a product of the Hawaii Clean Energy Initiative. This agreement provides that there should be no system-wide caps on net metering, and that net metering should transition towards a feed-in-tariff.  In December 2008, the PUC issued an order to raise the aggregate capacity limit for net-metered systems in the service territories of HELCO and MECO.  In January 2011, the PUC issued an order approving changes to Kauai's program, which was full, and the aggregate capacity limits for HECO companies were lifted and are now based on per-circuit caps rather than a percentage of peak demand.


 
Contact:
  Public Information - Hawaii PUC
Hawaii Public Utilities Commission
465 South King Street, Room 103
Honolulu, HI 96813
Phone: (808) 586-2020
E-Mail: Hawaii.PUC@hawaii.gov
Web Site: http://www.hawaii.gov/budget/puc
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.