Energy Incentive Programs, Hawaii
Updated November 2009
Below you will find questions and answers regarding Hawaii's utility energy efficiency programs, including options for load management, demand response, and distributed energy resources, and information about state-sponsored energy efficiency programs.
What public-purpose-funded energy efficiency programs are available in my state?
On July 1, 2009, the Hawaii Public Utilities Commission (PUC) started a new era in ratepayer-funded energy efficiency in the state. The new state-wide Hawaii Energy Efficiency Program is run under contract to the PUC and will administer all initiatives funded by the state's public benefits fee. Through its previous utility-administered programs, Hawaii budgeted more than $30 million in 2008 for energy efficiency and load management programs. This figure is expected to grow in coming years.
The 2009 offerings from the Hawaii Energy Efficiency Program include prescriptive rebates for a broad range of energy-efficient equipment to custom incentives ($0.05 per first-year kWh and $125 per kW saved) to energy studies. The slate of programs may change in 2010 but is expected to be similarly comprehensive.
What utility energy efficiency programs are available to me?
All initiatives previously administered by Hawaii Electric (HECO), Hawaii Electric Light (HELCO), and Maui Electric (MECO) are now included under the Hawaii Energy Efficiency Program.
Kauai Island Utility Cooperative (KIUC) customers do not pay the state public benefits fee and therefore cannot participate in the Hawaii Energy Efficiency Program. However, KIUC offers its Energy Wise Commercial Energy Efficiency Program in which equipment installed pursuant to a KIUC energy audit is eligible for an incentive.
What load management/demand response options are available to me?
HECO offers a direct load control program called Energy Scout. Customers that allow HECO to control at least 50 kW of their load (up to 10,000 kW) through curtailing equipment operation or starting backup generators are remunerated $10 per kW each month they participate in addition to receiving $0.25 per kWh for any actual events HECO initiates. HECO provides a free evaluation to help assess whether participation is desirable.
What distributed energy resource options are available to me?
The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following programs may be of interest to Federal customers:
The Hawaii Energy Efficiency Program incentivizes solar hot water installations through one-time rebates (upon installation) of $125 per kW plus $0.05 per estimated annual kWh saved for retrofit installations as well as $0.06 for new construction. Systems must be installed by contractors qualified by the program.
KIUC also offers a solar water heating incentive as part of its Energy Wise Commercial program. Commercial customers are remunerated between 50% and 80% of the installed system cost.
The state of Hawaii offers a corporate tax credit of 20% to 35% to companies that develop wind and solar projects (including solar thermal electric, solar heating, and photovoltaics). While Federal facilities cannot take direct advantage of this incentive as untaxed entities, private companies working with Federal installations can implement these projects as power purchase agreements (PPAs) or other arrangements in which the private entity owns the asset and shares the benefit with the Federal host.
Hawaii's three investor-owned utilities (HECO, HELCO, and MECO) offer a feed-in tariff whereby each will purchase the electric output of solar, wind, and certain hydroelectric installations of up to 5 MW. Though the purchase rates have not yet been determined, the tariff will assure developers a buyer for their energy for up to 20 years.
Are there energy efficiency programs sponsored by the state government?
No state energy efficiency programs are currently available to Federal customers.
What additional opportunities are available to me?
Federal customers whose utilities have area-wide contracts through the General Services Administration (GSA) may be able to take advantage of third-party financed energy efficiency projects called utility energy service contracts (UESCs). Information is available through the GSA Energy Center of Expertise Library. Federal facilities should contact their account executive to determine the level of each utility's participation.
NOTE: Energy efficiency funds and demand response programs are updated at least annually. Please contact the FEMP webmaster if changes are needed between updates.