Customer Renewable Programs

Battery Bonus

Receive Cash Incentives for Adding New Energy Storage to a Rooftop Solar System

On Dec. 20, 2023, the Hawaii Public Utilities Commission extended the enrollment period for the Battery Bonus program. Customers who submitted a Battery Bonus application by Dec. 31, 2023, and is confirmed to be a complete application will be considered eligible for the program on Oahu. A successor program to Battery Bonus known as Bring Your Own Device (BYOD) is scheduled to launch March 1, 2024. Contractors may learn more about the new program at our upcoming info sessions.

Tesla Power Batteries

The Battery Bonus program is a 10-year program and is designed to help move Hawaii toward its goal of 100% clean energy by 2045 and add more renewable resources to the grid as Hawaiian Electric retires generators fired by fossil fuels.

The program's enrollment is capped at a total of 40 megawatts (MW) supplied from storage on Oahu and 15 MW supplied from storage on Maui.


Application Period

Oahu:

No longer accepting new applications.

Maui:

Applications will be accepted until total enrolled capacity reaches 15MW or until June 30, 2024, whichever comes first.

As of 2/2/2024 Enrolled MWs
Oahu 40 MW out of 40 MW
Maui 7.8 MW out of 15 MW


Incentives

  1. A one-time cash incentive of $850 for every kW committed.
  2. Monthly $5 per kW capacity credit for the 10–year duration of the program. The payment is offered as a bill credit. Any used credits will be issued in the form of a check at the end of every year.
  3. Customers not participating in the Net Energy Metering Program, will receive a monthly export bill credit amount for energy exported to the grid for 3 years. The credit is an amount equivalent to the respective retail rate for electricity exported during the two–hour period. The credit rate will be updated to the retail rates at the beginning of each calendar quarter. Any unused portion of the credit will be zeroed out at the end of every year. The credit is not cashable. For details on the credit rate calculation, please refer to our FAQ below.

How It Works

Participants must use and/or export electricity from a new battery at a committed kW amount for a duration of two consecutive hours set by Hawaiian Electric between 6–8:30 p.m. daily, including weekends and holidays for the 10–year duration of the program. The amount of committed capacity determines the incentive amounts. For example: A customer has a 15 kilowatt–hour (kWh) battery can commit 5 kW or 10 kWh over two hours. The incentives they would receive are:

  1. A one–time cash incentive of $4,250 ($850 * 5 kW)
  2. A monthly capacity credit of $25 ($5 * 5 kW) for the 10-year duration of the program
  3. If the customer is not participating in the Net Energy Metering Program and are in Customer Grid Supply Plus (CGS+) program, the average rate for the monthly export bill credit would be about $60 for 3 years. Please note that this is an approximate calculation as the credit fluctuates to the retail rate. For details on the calculation, please refer to our FAQ below.

If weather does not allow for sufficient battery charging, there will be no penalty to the customer as long as the battery storage is paired with PV generation with a ratio of at least 1 kW of generation for every 2 kWh of committed capacity.

For complete details of the program, please review the Battery Bonus Program Agreement (PDF).


Applications Requirements

To apply for the Battery Bonus program, customers must first contact 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.

Securing a building permit with the appropriate county building department or proof of permit application is required as part of the application and will determine the incentive amount.

Application Checklist:

  1. Enrollment in approved Hawaiian Electric renewable energy rate program on Oahu and Maui: NEM/+, CGS/+, SE, CSS, SIA
    • Must install new battery (Replacement batteries are not eligible, and adding more storage is eligible if increasing battery kW, not kWh)
    • Must use battery two consecutive hours each day between 6-8:30 p.m. Hawaiian Electric will provide the exact start time.
  2. Proof of permit application with county permitting office
  3. Submission of a Battery Bonus amendment in the Customer Interconnection Tool (CIT). Your contractor will help you submit the amendment.
    • Tip: When submitting the application, please use the account holder name (name on the Hawaiian Electric bill) as the System Owner Operator to decrease the amount of time to process the upfront incentive check. It is recommended that the System Owner Operator is the same name as the Customer Battery Storage-Operator, see agreement page 1.
  4. Provide seven days of operational data, as required
  5. Signed W9 Form (the name on the form must belong to an individual and it must be the same individual as the Customer Battery Storage-Operator, see agreement page 1.) Electronic signatures encouraged using DocuSign. To receive a W9 DocSign form, please reach out to your contractor. W9 forms also can be printed out, signed and mailed to: Hawaiian Electric, P. O. Box 2750, Honolulu, HI 96840, Attn: AL18-SG

Stages of an Application

A Battery Bonus application must be submitted as an amendment to an existing solar system that is presently enrolled in a customer energy program. Once a Battery Bonus application is submitted through CIT by your contractor, the application will have a status associated with it. For a general outline of the progression of an application, please refer to the table below.

Stage What it means
Initiated Your contractor initiated your application in CIT
Completeness Review Your contractor submitted your application for Hawaiian Electric's review
Conditional Approval Application is approved
Validation and Verification Review Your contractor will submit validation and verification files and Hawaiian Electric will review the files to ensure that your battery system meets the program's requirement
Pending Execution An amendment and agreement will be sent to you for your signature by Hawaiian Electric and if a W9 form has not already been provided, it will be requested.
Project Execution Your upfront incentive check has been issued

Frequently Asked Questions


What is the Battery Bonus program?

Battery Bonus provides 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.


How can I determine if the Battery Bonus program is suitable for me?

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.


How do I know if I am eligible?

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.

Customers with an existing solar system and are presently enrolled in a customer energy program (such as Net Energy Metering, Customer Grid Supply, or others) can receive full benefits from these programs. A customer must install a battery of any size and may add new panels as long as the additional PV capacity is not more than twice the battery size.

Please note that projects with equipment installed prior to July 1, 2021 on Oahu and June 1, 2022 on Maui are not eligible.


What are the details of the incentives and credit calculations for the Battery Bonus program?

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

  1. One-time check: You will receive $850 per kilowatt (kW) of committed capacity. For example, if you commit 5 kW, you'll get a $4,250 bonus. The payment will be made after your project is installed, operational, and contracts are signed. The incentive check will be sent within 30 days from the date of the executed contract email. The one-time incentive check will be reduced by any outstanding charges on your electric bill.
  2. Monthly capacity bill credit: You will receive $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 first day of the approved 7-day data file). This monthly bill credit started in June 2022 for all participants and is not retroactive for energy storage systems in place before that date. Any unused credits will be issued in the form of a check at the end of every year.
  3. Monthly export bill credit for non-Net Energy Metering (NEM) program 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)] * Committed Capacity (kW) * 70% * 2 hours * 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 unused 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. A one-time cash incentive of $4,250 ($850 * 5 kW)
  2. A monthly capacity credit of $25 ($5 * 5 kW)
  3. If the customer is not participating in the Net Energy Metering Program and are in Customer Grid Supply Plus (CGS+) program the average rate would be $63 for the monthly export bill credit. The credit is calculated as ($0.40 - $0.10)/kWh * 5 kW * 70% * 2 hours * 30 days. Please note that this is an approximate calculation as the credit fluctuates to the retail rate.

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

The one-time check and monthly capacity bill credits are considered as income and are taxable. Hawaiian Electric will provide participants with tax forms and customer must report this information to the IRS and the 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 recipient of the upfront incentive check will be the owner of the storage system. The monthly capacity credit and monthly export credit will be tied to the bill account holder on the CIT application, as the credits are applied on the bill. To receive the incentives faster, the bill account holder should be the owner of the storage system.


What do I need to receive the incentive?

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 two consecutive hours each day between 6-8:30 p.m. Hawaiian Electric will provide the exact start time.
  4. Provide proof of permit application from the county permitting office.
    • On Maui, submit a completed Hawaiian Electric Grant of Authority form to the county permitting office to obtain a building permit number.
  5. Submit a Battery Bonus amendment in the Customer Interconnection Tool.
  6. Provide seven days of operational data, as required to show how much the battery is discharging during the two-hour peak period, verifying the incentive amount.
  7. Signed W9 Form (the name on the form must belong to an individual and it must be the same individual as the Customer Battery Storage-Operator, see agreement page 1.) Electronic signatures encouraged using DocuSign. To receive a W9 DocSign form, please reach out to your contractor. W9 forms can also be printed out, signed and mailed to: Hawaiian Electric, P. O. Box 2750, Honolulu, HI 96840, Attn: AL18-SG

What is the required amount of power (kW) to be delivered during an event?

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.


How do I determine my program commitment level?

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.


How do I sign up?

To sign up, collaborate with your contractor and submit a Battery Bonus 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, operational, and contracts are signed, the upfront check will be issued. You can submit your applications through the Customer Interconnection Tool. 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.


Can I add a battery to my existing solar system to participate?

Yes, you can.


Can I participate by adding more solar panels to my system?

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


Contact Us

Couldn't find an answer to your question in the Frequently Asked Questions? Consider reviewing our Q&A document below.

Should you have any further questions, contact us at connect@hawaiianelectric.com


Withdrawal or Termination

Applications that have not been executed and were not issued an upfront incentive check may withdraw from the program. Please contact your contractor and complete the DER Application Withdrawal Form (PDF). They will submit the form to us on your behalf.

Customers that have an executed application and have received an upfront incentive check may end participation before the 10-year commitment with a 60-day written notice to Hawaiian Electric. They must repay a prorated portion of the upfront incentive. Please fill out the Notice of Termination form and submit to batterybonus@hawaiianelectric.com to terminate the contract.