Battery Bonus

Battery Bonus is a new initiative in Hawaii that provides monthly and one-time incentives to residential and commercial customers on Oahu and Maui. These incentives are given to encourage customers to add energy storage to their existing or new rooftop solar systems. By doing so, it helps Hawaii move closer to its goal of using 100% clean energy for electricity by 2045 and supports the shift from fossil fuels to renewable-based generation. The program's rules can be found in Rule 31.

Several factors should be taken into account when considering this program. If your main goal is to lower your current electricity bill, you should evaluate how long it will take for the savings from the added generating capacity and/or battery to cover the installation costs. However, if your motivation is to contribute to cleaner energy and reduce dependence on fossil fuels, the program's intrinsic value becomes more important.

There are three types of incentives in the Battery Bonus program:

1. One-time check: You will receive $850 per kilowatt (kW) on Oahu and Maui. For example, if you commit 5 kW, you'll get a $4,250 bonus. The payment will be made after your project is installed and operational, and contracts are signed. The incentive check will be sent within 30 days from the date of the contract execution email. The program is capped at 15 MW for Maui and 40 MW for Oahu. The one-time incentive check will be reduced by any outstanding charges on your electric bill.
2. Monthly capacity bill credit: You will get $5 per kW per month of committed capacity. This credit will reduce your minimum bill cost and lasts for 10 years from the enrollment start date (the execution of the contract), shown as execution of contract date on the Scheduled Dispatch Program (SDP) agreement. This monthly bill credit started in June 2022 for all participants and is not retroactive for energy storage systems in place before that date.
3. Monthly energy bill credit for non-Net Energy Metering (NEM) program customers. Monthly export credit for non-Net Energy Metering (NEM) customers is calculated as follows:

   Credit = [(Sum of non-fuel energy charges and all per-kWh charges, using rates at the beginning of each calendar quarter) - (Non-NEM, Distributed Energy Resources (DER) tariff export rate per kWh)] x Committed Capacity (kW) x 70% x 2 hours x 30 days.

This fixed credit expires after three years from the enrollment start date. This credit started in July 2022 and is not retroactive for energy storage systems in place before that date. Any used portion of the credit will be zeroed out at the end of every year. The credit is not cashable.

Example for 5kW Committed Capacity Incentives:

1. One-time check: If you commit to a 5kW capacity, you will receive a one-time payment of $4,250. The amount is calculated as $850/kW * 5 kW = $4,250.
2. Monthly capacity bill credit: You will get a monthly credit of $25 ($5 per kW) for your committed 5 kW capacity.
3. Non-NEM customers only: For non-Net Energy Metering customers, you will receive an additional credit of about $46.20 per month. The credit is calculated as ($0.32 - $0.10)/kWh x 5 kW x 70% x 2 hours x 30 days Please note that the specific rates used in this example are approximate and may vary.

Remember, these incentives are added to any credits you already receive from being on your respective Distributed Energy Resources (DER) program.

To receive the incentive, you need to meet the following criteria:

1. Be enrolled in an approved Hawaiian Electric renewable energy rate program on Oahu and Maui (NEM/+, CGS/+, SE, CSS, SIA). (Note: Feed-in Tariff does not qualify).
2. Install a new battery for your solar system.
3. Use the battery for at least two hours every day between 6 p.m. and 8:30 p.m. The exact start time will be provided by Hawaiian Electric.
4. Provide proof of permit application from the county permitting office.
5. On Maui, submit a completed Hawaiian Electric Grant of Authority form to the county permitting office to obtain a building permit number.
6. Submit a Battery Bonus amendment in the Customer Interconnection Tool.
7. Provide seven days of operational data, as required. Follow the instructions in the Handbook for delivering verification data and use the provided Excel file to submit the data.
8. Complete an IRS W-9 Form for Owner Operator. This is required before the issuance of the incentive check. Electronic signature is encouraged using DocuSign. W-9 forms can also be printed out, signed, and mailed to: Hawaiian Electric, P. O. Box 2750, Honolulu, HI 96840, Attn: AL18-SG.

When filling out the amendment form, you need to specify the "committed capacity." This means you must consistently deliver that specified amount every day for a duration of 10 years within the assigned two-hour block. You will receive an incentive payment based on the committed capacity you have specified. For example, if you have a 13.5 kWh battery and commit to delivering 5 kW for two hours (equivalent to 10 kWh), you will only receive an incentive payment for the 5 kW you have committed.

You can work with your contractor to determine the capacity level (measured in kW) that you want to commit to maintaining the discharge level from your battery storage system. This commitment ensures that you can use the battery system for two consecutive hours every day. The specific dispatch period will be provided by Hawaiian Electric when you enroll in the program, and they may inform you in advance if there are any changes to the dispatch period.

You are eligible for the Battery Bonus program if you are a new or existing residential or commercial customer with rooftop solar and a battery storage system charged from on-site solar generation. This applies to customers enrolled in Hawaiian Electric's NEM, CSS, CGS, CGS+, SE, or SIA programs. Please note that projects with equipment installed prior to July 1, 2021, on Oahu and June 1, 2022, on Maui are not eligible. If your application is pending, you can submit the amendment to connect@hawaiianelectric.com, indicate that the application is pending, and describe how the battery will provide added committed capacity.

To sign up, collaborate with your contractor and submit an application. The application should include evidence of a submitted building permit, which is necessary to determine and secure your incentive payment. After your system is installed and operational, the payment will be made. You can submit your applications through the Customer Interconnection Tool on the Hawaiian Electric website. If you are an existing or new Standard Interconnection Agreement customer who wants to apply for the Battery Bonus program, please email the required forms to siainfo@hawaiianelectric.com.

Yes, you can

No, to participate, you must include a new eligible battery system.