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Cash Incentive to Add Energy Storage to an Existing or New Rooftop Solar System
Hawaiian Electric will pay a cash incentive for customers on Oahu to add energy storage (a battery) to an existing or new rooftop solar system. This one-time incentive will help move Hawaii toward our goal of 100% clean energy by 2045 and add more renewable resources to the grid in the short-term when the AES coal-fired plant is retired in September 2022.
The Public Utilities Commission has capped the program at a total 50MW supplied from storage.
- Customers accepted in the program for the first 15 megawatts of committed capacity will receive $850 per kilowatt. (For example, 5 kilowatts would yield a $4,250 payment.) Customer must fulfill the obligation discussed below to receive the full amount.
- Customers who sign up for the next 15 megawatts of committed capacity will receive $750 per kilowatt.
- Customers who sign up for the last 20 megawatts of committed capacity will receive $500 per kilowatt.
Committed capacity is the amount of kW discharged from battery for 2 hours during the window of 6 - 8 p.m. The committed capacity determines incentive, for example, a 15kWh battery can commit 5kW or 10kWh over 2 hours, therefore, the incentive would be $850 x 5kW= $4,250, if submitted within the first 15MW group.
Customers who wish to participate with an existing solar system and are presently enrolled in a customer energy program (such as Net Energy Metering, Customer Grid Supply, or others) will continue to receive full benefits from these programs. A customer must install a battery of any size, and may add up to 5 kW under existing programs. Existing customers are customers that have received Permission to Operate before 7/1/2021.
The owner of the solar-plus-storage system will receive the incentive. That can be the residential or commercial customer owning the system or a company that leases the system to the homeowner or business.
This incentive payment is considered income. Hawaiian Electric will provide participants with tax forms and report information to the IRS and Hawaii Department of Taxation. Hawaiian Electric cannot offer tax advice. Consult a tax preparer with concerns about individual circumstances. In some cases, federal tax credits may be available.
The total program term is 10 years. Customers who participate must use and/or export electricity stored in the battery at the committed amount on a firm two-hour schedule specified by Hawaiian Electric between 6 p.m. to 8:30 p.m. (for example, 6:15 p.m. to 8:15 p.m.) daily including weekends and holidays through December 31, 2023.
Once the battery is installed and operational, there is a 30-day period to confirm the system works properly. Seven consecutive days of operational performance data will be collected to show how much the battery is exporting during the peak period, verifying the incentive amount. Hawaiian Electric must pay the incentive within 30 days after the data is delivered.
Customers must work with a solar contractor to add storage to an existing solar system or install a new solar-plus-storage system. Hawaiian Electric cannot recommend a contractor or equipment. If customers do not have a contractor, Hawaiian Electric recommends comparing bids from at least three contractors.
The contractor will help fill out forms and submit them through Hawaiian Electric’s on-line Customer Interconnection Tool. Contractors may also take advantage of Quick Connect, a “pre-approval” program that allows customers who meet certain requirements to install and energize their systems first and send Hawaiian Electric information on their system later. Securing a building permit with the City & County Department of Planning and Permitting or proof of permit application is required as part of the application, and will determine the incentive amount.
- Enrollment in approved Hawaiian Electric renewable energy rate program on island of Oahu: NEM/+, CGS/+, SE, CSS, SIA
- Must install new battery
- Must use battery 2 hours each day between 6 - 8:30 p.m. We provide exact start time.
- Proof of permit application with City & County Dept. of Planning & Permitting
- Signed Emergency Demand Response Amendment to Existing Agreement
- Signed Scheduled Dispatch Program (SDP) Agreement
- 7 days of operational data, as required (sent before or after validation of installation)
- W9 (required by owner of battery before issuance of check) mailed to: Hawaiian Electric (AT10-SG), P. O. Box 2750, Honolulu, HI 96840
Return completed forms to firstname.lastname@example.org. For existing or new Standard Interconnection Agreements also interested in applying to the Battery Bonus program, please email forms to email@example.com.
As of 11/24/2021
Incentive Rate = $850/kW
If you send your amendment and permit to firstname.lastname@example.org to lock in your incentive rate, you will be locked in at $850/kW. This rate will be updated when rate changes. We are currently at 2.9MW. The incentive rate will change to $750/kW after 15MW.
SDP Event Start Time = 6:02pm HST
QuickConnect participation only: Please use the start time for the two-hour schedule noted above. If your system is not capable of using the start time above, please contact us at email@example.com for an alternative window within the capabilities of your system.
Applications will be accepted through June 20, 2023, or until the 50MW cap is reached. If the storage system’s contracted capacity or export amount changes, it must be corrected within 30 days from notification or a $100 per month charge will appear on the customer’s bill.
Failure to Perform
The Company is looking for large variations in meter data, like greatly reduced export or increased consumption, changes that MAY indicate a change in the discharge of the battery due to broken equipment or willful modification of the scheduled dispatch. To do this, the Company is comparing a baseline (or rolling multi-day average) to the current meter data but only alerting on changes that are at least 125% of the baseline. For example, if the baseline is 4, then the current data would need to be at least 5 before it would even be brought to the attention of a reviewer. Using a baseline ensures that short duration deviations like reduced output due to UL1741 SA Advanced Inverter functions or short term weather patterns will not result in review.
If the Company determines the need to conduct a performance audit it will provide 7-days’ notice to the system owner (i.e. participant). The Company may request data to verify the discharge of the battery is compliant with the participant’s SDP agreement. Data will be requested in the same format as was required for the 7 days Operational Data to verify operation for program enrollment. If the data indicates that battery discharge is no longer compliant with SDP agreement, the Company will issue a Failure to Perform notice to the participant. The participant will have 30 days to cure Failure to Perform. After 30 days if not cured, in accordance with the PUC’s order, the Company will assess a $100 per month penalty on the participant. The participant can cure the Failure to Perform at any time by submitting data that verifies participant’s Committed Capacity, Schedule Discharge, and 7 days Operational Data (the same as was required for enrollment).
Customers may end participation before the 10-year commitment with a 60-day written notice to Hawaiian Electric and must repay a prorated portion of the incentive.
- Contact us by email at firstname.lastname@example.org