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Hawaii

Hawaii

Incentives/Policies for Renewables & Efficiency

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Hawaii Energy   

Last DSIRE Review: 09/09/2014
Program Overview:
State: Hawaii
Incentive Type: Public Benefits Fund
Eligible Efficiency Technologies: Clothes Washers, Refrigerators, Ceiling Fan, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Heat pumps, Central Air conditioners, Heat recovery, Windows, Motors, Processing and Manufacturing Equipment, Custom/Others pending approval, Led Exit Signs, Pool Pumps, Commercial Refrigeration Equipment, Food Service Equipment, LEDs, Heat Pump Water Heaters
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Attic Fans,
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Fed. Government
Types:Energy efficiency, demand side management
Total Fund:2013 Budget (July 2013-June 2014): $21.9 million in direct incentives
Charge:2009-2010: 1% of projected total utility revenue, including revenue tax
2011-2012: 1.5% of projected total utility revenue, including revenue tax
2013-onwards: 2% of projected total utility revenue, including revenue tax
Web Site: http://www.hawaiienergy.com/
Authority 1:
Date Enacted:
HI PUC Order, Docket 2007-0323
11/16/2011
Authority 2:
Date Enacted:
S.B. 1087
07/02/2013
Authority 3:
Date Enacted:
HRS ยง 269-121 et seq.
6/2/2006, subsequently amended
Authority 4:
Date Enacted:
HI PUC Order, Docket 2007-0323
12/15/2008
Summary:

Hawaii Energy is a public benefits fund (PBF) funded by a surcharge on utility bills that is based on a percentage of total utility revenue. The PBF pays for a number of clean energy incentive, rebate, and exchange programs. For more information on specific programs, visit the Hawaii Energy website.

The percentage of total utility revenue is used to establish a target budget for the PBF. The surcharge is set on a cents per kilowatt-hour ($/kWh) basis to meet the target budget. The surcharge is determined by dividing the target budget (based on a percentage of total utility sales) by projected sales. Any difference in the amount collected from the surcharge and the target budget will be addressed by adjusting the following year's surcharge (by either increasing or decreasing the surcharge). There will be separate residential and commercial/industrial components, with 45% of collections from residential customers and 55% of collections from commercial and industrial customers. The surcharge appears as a separate line item on customers' bills.

For 2009 and 2010, the PBF had a target budget of 1% of total projected revenue, including revenue taxes. For 2011 and 2012, the PBF has a target budget of 1.5% of total projected revenue. From 2013 onwards, the PBF will have a projected target budget of 2% of total projected revenue.  The PUC engages in rulemaking to set the target percentage for the total projected revenue each year.  All utilities in Hawaii, with the exception of KIUC, collect this surcharge on utility bills. Customers of HECO, HELCO, and MECO are eligible to receive incentives from the public benefits fund. Programs supported by Hawaii Energy include rebates for home appliances, industrial energy efficiency, and solar water heaters, among others.

In addition, as amended by the 2013 legislation, the Department of Business, Economic Development, and Tourism can issue Green Infrastructure Bonds in order to raise funds for renewable energy and energy efficiency projects. Revenue from the bonds will be used for on-bill financing and loan programs offered by the state and bondholders will be repaid with PBF funds.

History

In June 2006, the Hawaii State Legislature enacted legislation to create a public benefits fund (PBF) for energy efficiency and demand side management. In July 2013, the law was amended to allow for the financing of renewable energy technologies that are eligible under the Renewable Portfolio Standard. The statutory language included a provision that prevents the PBF funds from being re-appropriated by the legislature or put into the state treasury. This legislation granted authority to the Public Utilities Commission (PUC) to develop the details of the third-party administered public benefits fund. In December 2008, the PUC issued an order in Docket No. 2007-0323, outlining the structure of the PBF. In July 2009, Hawaii Energy was created, and administration of the public benefits funds programs transitioned from the utilities to a third-party administrator.

 


 
Contact:
  Hawaii Energy
1132 Bishop Street
Suite 1800
Honolulu, HI 96813
Phone: (808) 537-5577
Fax: (808) 441-6068
E-Mail: hawaiienergy@leidos.com
Web Site: http://www.hawaiienergy.com
 
  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
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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.