Hawaii
Incentives/Policies for Renewable Energy
|
 |
Last DSIRE Review: 01/22/2009
| Incentive Type: |
Net Metering |
| State: |
Hawaii |
| 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: | 3% of utility's peak demand for HELCO and MECO; 1% of utility's peak demand for KIUC and HECO
|
| 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://www.hawaii.gov/dbedt/info/energy
|
|
Authority 1:
|
HRS § 269-101 et seq.
|
| Date Enacted: | 6/25/2001 (subsequently amended) |
|
Authority 2:
|
HI PUC Order, Docket 2006-0084
|
| Date Enacted: | 12/28/2008 |
|
|
Summary:
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 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.
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. 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 to 1% of HECO's peak demand. Of this 1% limit, 40% is reserved for systems 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 to 3% of each utility's peak demand. Of this 3% limit, 40% is reserved for systems 10 kW or smaller. HELCO and MECO will increase the system cap from 3% to 4% of system peak demand at the point when approved net-metering applications equal or exceed 75% of the then existing 3% of system peak demand cap either for smaller systems (up to 10 kW) or larger systems. At this point, 30% of the 4% limit will be reserved for systems 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.
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."
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).
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. Electric utilities, along with the PUC, are currently in the process of considering changes in accordance with this agreement.
|
|
|
 |
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
|
