Hawaii joins other states in adopting uniform, standardized interconnection requirements as part of its net metering law. The law requires eligible systems to meet national standards developed by the IEEE and UL, and to be installed in accordance with the requirements of the National Electrical Code (NEC) and local codes.

The interconnection of distributed generation systems in Hawaii is governed by Rule 14, which was most recently modified in early 2003. The original modifications to Rule 14 came through Hawaii Public Utilities Commission Order # 19773 after a joint submission by the state's largest utilities in September 2002. In an effort to simplify and standardize the state's interconnection rules, the utilities added to the existing Rule 14 a new section (paragraph H) titled "Interconnection of Distributed Generating Facilities Operating in Parallel with the Company's Electric System." For more information contact the Hawaii Department of Business, Economic Development, and Tourism.

Simplified interconnection and net metering are available for solar, wind, biomass, and hydroelectric systems up to 10 kW. The state's largest electric utility, Hawaii Electric (HECO), which also owns Hawaii Electric Light Company (HELCO) and Maui Electric Company (MECO), has a set of simple how-to guidelines and contact information for interconnecting such systems. HECO also has a simple, two-page net metering agreement.

Corporate Solar and Wind Energy Credit
Originally enacted in 1990, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system and 35% of the cost of equipment and installation of a solar thermal or photovoltaic system. In 2003, the tax credits were revised and extended to the end of 2007. As a result of the passage of SB 3162 in June of 2004, a credit that exceeds the taxpayer's income tax liability may be carried forward to subsequent years until exhausted. There is a cap of $250,000 on the amount of credit allowed for commercial property.

Note that the state Capital Goods Excise Tax may not be claimed in conjunction with the state Energy Tax Credit. However, when claiming both the federal 10% Business Energy Tax Credit and the state Energy Tax Credit, both credits are deducted from the installed cost of the system. For more information, contact the Hawaii Department of Taxation.

High Technology Business Investment Tax Credit
On July 1, 2001, Hawaii became the only state in the nation to offer a 100% tax credit on an equity investment in a qualified high tech business (QHTB). The purpose of this credit is to encourage investment in Hawaii's high tech companies. A "qualified high technology business" is defined as "a business that conducts more than fifty per cent of its activities in qualified research." "Qualified research" includes "non-fossil fuel energy-related technology," which is defined as "energy produced by wind, solar energy, hydropower, geothermal resources, ocean thermal energy conversion, wave energy, hydrogen, fuel cells, landfill gas, waste to energy, biomass including municipal solid waste, and biofuels." HB 2396 of 2004 extended the expiration date of the tax credit from December 31, 2005 "to taxable years beginning after December 31, 2010." For more information contact the Hawaii Department of Taxation.

Residential Solar and Wind Energy Credit
Originally enacted in 1990, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system. In 2003, the tax credits were revised and extended to the end of 2007. As a result of the passage of SB 3162 in June of 2004, a credit that exceeds the taxpayer's income tax liability may be carried forward to subsequent years until exhausted. For more information contact the Hawaii Department of Taxation.

Renewable Portfolio Standard
On June 2, 2004, Hawaii’s existing renewable portfolio standard (RPS) goal was replaced with an enforceable standard. Under the original RPS goal established in 2001, 10% of electricity was to be generated from renewable resources by the end of 2010. Under the new standard, 20% of electricity is to be generated from renewable resources by the end of 2020.

Each electric utility is required to establish the following RPS percentages

8% of its net electricity sales by December 31, 2005;
10% of its net electricity sales by December 31, 2010;
15% of its net electricity sales by December 31, 2015; and
20% of its net electricity sales by December 31, 2020.

Existing renewables, about 8.2% statewide in 2003, can be counted in the total. The changes also require the Public Utilities Commission (PUC) to establish that the rate paid to a renewable energy generator may not be more than 100% of the avoided cost, which had been permitted by previous statute and may have hampered contract negotiations. The PUC has also been directed to adopt rules and implement a rate structure by Dec. 31, 2006, to provide incentives to encourage achieving the RPS standard, and to determine its impact on utility profit margins. If the PUC decides a utility cannot meet the standard in a cost-effective manner, it can issue a temporary waiver.

One important aspect of Hawaii’s RPS is that the bill actually carries the intent of expanded use of renewable energy beyond 20% and beyond 2020. The PUC is required to contract with the University of Hawaii’s Hawaii Natural Energy Institute to conduct a peer-reviewed study each five years and to provide a recommendation as to whether to revise the RPS. The RPS bill empowers the PUC to review and revise the RPS, up or down, every five years, and does not set 20%, or the year 2020 as limits. For more information, contact the Hawaii Department of Business, Economic Development, and Tourism.

The US Department of Energy has produced wind resource maps for each state. The map for Hawaii can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for Hawaii.

You may also find useful information at the web site for the National Renewable Energy Laboratory (NREL).  

The American Wind Energy Association provides a list of wind turbine manufacturers. For a list of wind turbine installers in your area, please contact the manufacturers.

Focus on Energy supports a Wind Maps and Data center, which has multiple resources for small wind.

Source Guides offer a list of renewable energy companies in each state. To see companies in Hawaii, visit their website.

For more information about Hawaii Electric Utilities visit the Hawaii Public Utilities Commission which oversees all franchised or certificated public service companies operating in the State; prescribes rates, tariffs, charges and fees; determines the allowable rate of earnings in establishing rates; issues guidelines concerning the general management of franchised or certificated utility businesses; and acts on requests for the acquisition, sale, disposition or other exchange of utility properties, including mergers and consolidations.

The Hawaiian Electric Company, Inc. (HECO), and its subsidiaries, Maui Electric Company, Ltd. (MECO), and Hawaii Electric Light Company, Inc. (HELCO), provide electricity to 95% of the state's 1.2 million residents on the islands of Oahu, Maui, Hawaii, Lanai and Molokai. For more information on their renewable energy programs visit this comprehensive web resource.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintain a list of state contacts. The Hawaii Department of Energy hosts an extensive web resource for wind energy in Hawaii.  Find information, studies, and contacts here.

Hawaii Wind Working Group
This group’s objectives are to:

• provide a forum for information exchange among member organizations;
• provide accurate, technically sound information on wind energy to the public and decisionmakers;
• provide Hawaii organizations with access to Federal and other resources for the support of wind energy;
• encourage the development of technically and economically feasible wind projects in an environmentally, socially, culturally, and aesthetically appropriate manner.

For more information contact Art Seki at arthur.seki@heco.com  or Maurice Kaya at mkaya@dbedt.hawaii.gov

Maui Tomorrow
This organization works with government decision-makers and citizens to teach and promote growth management strategies, to implement sustainable development policies for Maui, and to preserve irreplaceable open space and natural areas. It conducts community forums and workshops; provides input to the planning process; testifies at public hearings; distributes action alerts via mail, fax and e-mail; maintains an interactive website; makes educational materials available, and more. Learn more about Maui Tomorrow.

Hawaii Natural Energy Institute
The Hawaii Natural Energy Institute, located on the campus of the University of Hawaii, was established by the Legislature in 1974, in the aftermath of the world's first oil crisis, to seek new forms of energy that would supplant the nation's dependence on fossil fuels. The Hawaii Natural Energy Institute coordinated the first comprehensive wind surveys of the Hawaiian archipelago that furnished the data needed for the location of wind turbines. For more information, visit their website.

Last Updated: April 2005.

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