Last DSIRE Review: 10/02/2009
Program Overview:
| State: |
Hawaii |
| Incentive Type: |
Production Incentive |
| Eligible Renewable/Other Technologies: |
Solar Thermal Electric, Photovoltaics, Wind, Hydroelectric, Small Hydroelectric |
| Applicable Sectors: |
Commercial, Industrial, Residential |
| Amount: | Rate not yet determined | | Maximum Incentive: | Systems up to 5 MW are eligible, though system size cap varies by technology and island | | Terms: | 20 year contract |
Summary:
In September 2009, the Hawaii Public Utilities Commission (PUC) issued a decision that established a feed-in tariff in Hawaii. The feed-in tariff will be offered by the three investor-owned utilities: HECO, MECO and HELCO. In October 2008, the PUC opened a docket to review the development of a feed-in tariff. The creation of the feed-in tariff is in accordance with the Hawaii Clean Energy Initiative, and serves to formalize some of the goals established in 2008.
Several renewable energy technologies are eligible for the feed-in tariff, including solar photovoltaics, concentrating solar power, on-shore wind and in-line hydropower. Under this program, qualified projects will receive a fixed rate over a 20-year contract. The PUC must still set the rate for different renewable energy technologies. This program will be reviewed by the PUC two years after the start of the program and every three years thereafter.
Background
In January 2008, the U.S. Department of Energy (DOE) and the State of Hawaii signed a Memorandum of Understanding (MOU) establishing the Hawaii Clean Energy Initiative. This agreement established an aggressive goal to help Hawaii greatly increase its renewable and clean energy production capabilities, and to transition exclusively to renewable energy use on the smaller islands. Although the MOU is not legally binding, it has the potential to help reduce oil consumption in Hawaii by 72% if implementation is successful.
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