Energy Incentive Programs, Hawaii

Updated December 2011

What public-purpose-funded energy efficiency programs are available in my state?

On July 1st, 2009, the Hawaii Public Utilities Commission kicked off a new era in ratepayer-funded energy efficiency in the state. The state-wide Hawaii Energy Efficiency Program is run under contract to the PUC and administers all initiatives funded by the state's Public Benefits Fee. Through these programs, along with the remaining utility-administered initiative (see below), over $19 million was budgeted in 2010 for energy efficiency programs.

Available from Hawaii Energy Efficiency are prescriptive rebates for a broad range of energy-efficient equipment, ranging from electric chillers to window films, as well as custom incentives (@ $0.05-0.08 per first-year kWh, depending on measure lifetime, and $125/kW-peak saved) and energy studies.

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) have now been subsumed under the Hawaii Energy Efficiency Program (see above).

Kauai Island Utility Cooperative (KIUC) customers do not pay the state Public Benefits Fee and thus can not participate in the Hawaii Energy Efficiency Program. However, KIUC offers its Energy Wise programs, 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. While the program is currently (November, 2011) under review by the Hawaii PUC and not accepting new customers, in the existing structure participants that allow HECO to control at least 50 kW of their load through either curtailing equipment operation or starting back-up generators are remunerated $10/kW each month they participate. In addition, they receive $0.25/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 Renewables and Efficiency (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 $50 per 5,000 Btu/h of derated capacity (of the conventional electric system). Systems must be installed by contractors qualified with the program.
KIUC also offers a solar hot water incentive as part of its Energy Wise Commercial program (see above). 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 percent to companies that develop wind and solar (including solar thermal electric, solar heating, and PV) projects, respectively. While federal facilities, as untaxed entities, cannot take direct advantage of this incentive, private concerns 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.
Customers of Hawaii's three investor-owned utilities, HECO, HELCO, and MECO, are offered a feed-in tariff whereby the utilities will purchase the electric output of solar, wind, and certain hydroelectric installations of up to 5 MW. Purchase rates vary, depending on technology and capacity, between roughly 14 and 27 cents/kWh, but will last under the tariff 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 GSA, may be able to take advantage of 3rd-party financed energy efficiency projects called utility energy services contracts (UESCs). Information is available on GSA's Energy Center of Expertise Library Page. Federal facilities should contact their account executive to determine the level of each utility's participation.