Tracking system: None
Hawaii recently became the only state with a 100% binding renewable portfolio standard (RPS). Hawaii's RPS requires each utility company that sells electricity for consumption in Hawaii to source 100% of its net electricity sales from renewable energy by December 31, 2045. Hawaii also replaced its net-metering program with supply options for net excess generation compensation. Hawaii provides commercial system owners with a 35% tax credit. It has a community solar program with utility tariff filed with the Public Utilities Commission (PUC).
In 2015, the Hawaii PUC voted to replace net metering with grid-supply or self-supply compensation options, as well as a time of use tariff option. Under the grid-supply option, PV customers can receive a reduced rate (between 40% and 75% of retail) for net excess generation. Under the self-supply option, PV customers are prohibited from exporting excess generation to the grid and qualify for an expedited interconnection study.
System size limit: 100 kW for the three Hawaiian Electric Company's customers; 50 kW for KIUC customers
Aggregate cap: 15% per circuit distribution threshold for distributed generation penetration
Credit: Net excess generation is credited at retail rate.
RECs: Not addressed
Meter aggregation: Virtual net metering tariffs have been developed by state utilities.
Hawaii also established simplified interconnection procedures for net-metered systems (up to 50 kW in Kauai and up to 100 kW for all other islands). The PUC created a standard three-party interconnection agreement, in addition to the two-party interconnection agreement, to improve consistency and expedite the process. Hawaii has simplified interconnection rules for inverter-based distributed generation under 250 kW (excluding Kauai). When a system does not meet certain technical screening criteria, a supplemental review process determines if simplified interconnection can take place, if interconnection requirements beyond simplified interconnection are needed, or if an interconnection requirement study is needed.
System size limit: Not specified
Liability insurance: Generally required
External disconnect switch: Required
Third Party Ownership
Third party system owners are exempt from regulation as a public utility.
As of June 2015, Hawaii requires all utilities to submit proposals for community-based renewable energy tariffs with the Hawaii PUC. Utilities began submitting proposals in late 2015.
State Incentive Programs
|Farm and Aquaculture Alternative Energy Loan||Department of Agriculture||Agriculture and aquaculture solar PV projects are eligible for 3% and 5% interest rates loans, respectively, for up to 85% of the project cost (capped at $1,500,000).|
|Solar and Wind Energy Credit||Department of Taxation||Commercial system owners are eligible for a tax credit worth 35% of the system's value. The Hawaii tax credit is capped at $500,000 for commercial properties. Solar system owners are also eligible for a rebate for the value of the state's capital goods excise tax paid on the system (4% of system cost).|
Utility Incentive Programs
Hawaiian Electric Company offers a feed-in tariff for solar PV generation. Feed-in tariff rates are defined for three system sizes.
|Hawaiian Electric Company||$0.218/kWh
20kW - 500 kW
500 kW - 5,000 kW
The list below provides some resources for each type of policy or program. Please reference and contact relevant authorities and local utilities for the most up-to-date and accurate information on state and utility policies and incentive programs.
Renewable Portfolio Standard
Net metering and interconnection
- SB 1050: Mandatory community renewable energy tariffs
- Hawaiian Electric Company: Standard Interconnection Agreement
Programs and incentives
- State of Hawaii, Department of Taxation: Solar and Wind Energy Credit
- Hawaiian Electric Company: Feed-In Tariff
- State of Hawaii, Agricultural Loan Division: Alternative Energy Loan