To accelerate Hawaiʻi's transition to renewable energy, Gov. Josh Green set a new goal for rooftop solar in an executive order last week: 50,000 new installations by 2030.
Rooftop solar is already an important part of Hawaiʻi's energy mix. Hawaiian Electric is getting nearly half of its renewable energy from rooftop solar systems, and Kauaʻi Island Utility Cooperative is getting about a third.
But Rocky Mould, executive director of the Hawaiʻi Solar Energy Association, said that in order to meet Green's new target, the state needs to pick up the pace on installation.
Prior to 2023, Hawaiʻi was installing about 2,000 to 3,000 new rooftop solar systems per year, according to Mould.
"In 2023, we had a very good year after many years of kind of being down," Mould said.
New solar systems jumped to almost 6,500 in 2023, a twofold increase that Mould attributes to the popularity of the Battery Bonus Program.
That program was meant to incentivize customers to put in solar and storage to help provide energy to the grid after the closure of the AES coal plant on Oʻahu. Participants could receive $4,250 upfront, as well as monthly bill credits.
Last year, Hawaiian Electric replaced its temporary Battery Bonus Program with a new Bring Your Own Device Program. Many in the solar industry pushed back against the change, claiming its incentives were less enticing.
On Dec. 31, the Public Utilities Commission initiated a proceeding to discuss possible modifications to the BYOD program, which the commission noted was "unpopular and not adding significant resources to the electric system."
Mould said that while the Hawaiʻi Solar Energy Association has had its "critiques" of the transition from Battery Bonus to BYOD, he is encouraged by current conversations on how to make compensation schemes work better for customer-providers.
"To get to 10,000 a year is ambitious, for sure," he said. "But we think if we get the right program designs underneath this in terms of grid services, in terms of micro-grid services, and get the right compensation frameworks going, I think it's achievable."
Utilities push back against solar legislation
Both the state Senate and House have introduced bills that reaffirm the goal of 50,000 new solar installations by 2030.
Kauaʻi Island Utility Cooperative is against both measures. In testimony submitted in opposition, KIUC contends that it already has a path laid out to power Kauaʻi using 100% renewable energy by 2033.
That plan does include more rooftop solar, but it relies more heavily on utility-scale solar projects and biofuels.
"While KIUC recognizes that supporting the expansion of distributed energy resources offers many benefits, it is important to remember that not all residents have the financial resources or ability to take advantage of rooftop solar," the utility stated in its written testimony.
"To that point, it is in the best interest of all KIUC's members that we maximize use of the lowest-cost solar resources, which are typically our utility-scale projects."
KIUC has asked that it be exempt from the mandate if the measures move forward.
Hawaiian Electric is also opposed to legislation that sets a goal of 50,000 new rooftop solar units. Before the House Energy and Environmental Protection Committee meeting on Tuesday, HECO's Kaiulani Shinsato said such a measure was unnecessary.
Shinsato said that while HECO agreed with the goal and the "intent behind it," there was "no need to legislate," as HECO had already implemented the same target as part of its Climate Action Plan and Integrated Grid Planning process.
"We definitely plan to meet it by 2030," she said. "So our recommendation is to kind of stick to that path that we've already laid out."
Finding the sweet spot for solar compensation
While the solar industry says adequate compensation is key to encouraging customers to install solar systems that provide energy to the grid, some parties feel that the proposed legislation would set the level of compensation too high.
The measures propose crediting customer-providers at "the full retail rate of electricity for the relevant time period."
The Public Utilities Commission noted that exports of distributed energy resources to the grid are usually credited at a lower value than the full retail rate. They cautioned that the proposal may increase the energy burden of ratepayers without rooftop solar.
HECO likewise argued that retail crediting would "significantly increase" the cost of its grid services program.
"These costs are paid for by all customers, including low-to-moderate income customers, and customers on fixed incomes," HECO stated in its written testimony. "These incentives should not come at a cost that unfairly impacts non-DER customers, including many who are facing financial hardship."
The Division of the Consumer Advocate and the environmental advocacy group Life of the Land also contended that retail crediting raised potential equity issues between those with and those without access to rooftop solar.
Both the Senate and the House have voted to pass their respective measures out of committee.
