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Hawaii

 

An arrow graphic shows that Hawaii's renewable portfolio standard increases from 29% in 2015, to 100% in 2045.

Carve-out: None
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).

Net Metering

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.

Interconnection

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.

Community Solar

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

Program Administrator Incentive
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.

Utility Incentive Limitations
Hawaiian Electric Company $0.218/kWh
$0.189/kWh
$0.197/kWh
<20 kW
20kW - 500 kW
500 kW - 5,000 kW

Resources

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

Community solar

Programs and incentives

Other