What Smart Renewable Energy Programs are Available in Hawaii?

Industry insights · Aug 26, 2024

Hawaii has long been a beacon for renewable energy innovation, and the state's latest Smart Renewable Energy Programs continue to push the envelope.

Designed to simplify renewable energy solutions and to make them more equitable, these programs offer new opportunities for both existing and prospective customers.

If you’re curious about how these changes might affect you and your energy setup, here’s a comprehensive overview of what you need to know.

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What Are Smart Renewable Energy Programs?

The HECO Smart Renewable Energy Programs, also known as Smart DER (Distributed Energy Resources), represent a shift towards more advanced and user-friendly renewable energy solutions.

These programs are part of the state’s broader strategy to enhance energy efficiency, reduce reliance on fossil fuels, and promote sustainable energy practices.

Key Features of the HECO Smart Renewable Energy Programs

Smart Renewable Energy Export Program

This program is designed for residential and commercial solar systems, whether or not they include batteries. It provides export bill credits without any project size limitations, which means there is no cap on how much energy you can send back to the grid.

Existing Customers

As an existing CGS, CGS+, or Smart Export customer, you must transition to the new Smart Renewable Energy Export program within seven years from your current contract’s start date, with a 6-month grace period. Net Energy Metering (NEM) and NEM Plus customers are exempt from this transition.

- Export Rates: Will align with the Smart Renewable Energy Export rates at that time, which are subject to change but typically fixed every three years.

- Advanced Meter: Required

- Shift and Save Program: Enrollment is required but optional to decline; if you prefer not to have an advanced meter or participate in Shift and Save, you can switch to the Smart Renewable Energy Non-Export program.

New Customers

- Rate Lock-In: You have the option to lock in your export rates for seven years before switching to the standard rate changes.

- If you choose to break your lock-in rate for better Smart Renewable Energy Export rates, you’ll be subject to rate changes every three years and cannot revert to your original lock-in rate.

Smart Renewable Energy Export Rates

 

Daytime

(9 a.m. - 5 p.m.)

Evening Peak

(5 p.m. - 9 p.m.)

Overnight

(9 p.m. - 9 a.m.)

Oahu

$0.135

$0.329

$0.189

Hawaii Island

$0.106

$0.231

$0.148

Maui

$0.066

$0.182

$0.131

Lanai

$0.267

$0.408

$0.259

Molokai

$0.179

$0.272

$0.174

*Rates may change pending PUC approval; Currently, rates are fixed for every three (3) years.

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Smart Renewable Energy Non-Export Program

This program caters to all renewable technologies and project sizes but does not allow for energy export. It’s ideal for customers who want to use renewable energy without returning surplus power to the grid.

New and Existing Non-Export Customers

This program includes:

- Advanced Meter: Required

- Shift and Save: Enrolled by default with an option to decline

- Capacity Limits: No specific capacity limit

Bring Your Own Device (BYOD) Program

The BYOD program incentivizes customers to install new batteries and participate in load reduction during peak times. It’s a part of Hawaii’s effort to more effectively manage energy demand.

For New and Existing Battery Bonus Customers

To participate in this program, be aware of the following commitments:

- Advanced Meter: Required

- Shift and Save: Automatic enrollment with BYOD, but you can opt-out

- Capacity Limits: No specific capacity limit

- Financial Benefits: $100/committed kW upfront (up to $500) plus $5/committed kW monthly; additional $100/committed kW upfront ($500 maximum) incentive for low-to-moderate income customers

- Commitment: 10-year total with a 3-year initial commitment for battery use during specified evening hours

- Existing Battery Bonus Customers: Can transition to the new BYOD program if desired

New customers must purchase a new battery to participate. The export rates for existing NEM and interim renewable energy program customers may differ. BYOD customers will use either the Smart Renewable Energy Export rate or the rate of their current program, whichever is higher, for exporting energy.

Smart Renewable Energy Export Rates

 

Daytime

(9 a.m. - 5 p.m.)

Evening Peak

(5 p.m. - 9 p.m.)

Overnight

(9 p.m. - 9 a.m.)

Oahu

$0.135

$0.329

$0.189

Hawaii Island

$0.106

$0.231

$0.148

Maui

$0.066

$0.182

$0.131

Lanai

$0.267

$0.408

$0.259

Molokai

$0.179

$0.272

$0.174

*Rates may change pending PUC approval; Currently, rates are fixed for every three (3) years; Export rates may be different for existing customers on NEM and interim renewable energy programs; BYOD customers will export using the Smart Renewable Energy Export rate or the rate of their underlying program, whichever is higher.

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Kauai Island Customers

The Kauai electric utility, KIUC (Kauai Island Utility Cooperative), has the Schedule Q tariff for residential solar customers. KIUC guidelines for interconnecting solar are restricted by a “right-sizing” formula based on monthly energy consumption.

KIUC customers must submit applications for PV that are right-sized per the KIUC formula or pair a larger PV system with an ESS that is of equal or greater power rating (e.g. a 5 kW AC PV system with a 5 kW AC of any kWh/capacity ESS) if system PV is greater than dictated in the PV-only formula.

KIUC does not offer the BYOD program administered by HECO.

Conclusion

Hawaii’s Smart Renewable Energy Programs are a testament to the state’s commitment to advancing renewable energy while ensuring that all customers can benefit from these innovations. Whether you’re an existing customer or new to the renewable energy scene, these programs offer valuable opportunities to participate in Hawaii’s clean energy future.

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