Energy efficiency program trims incentives but increases savings

A state program helping Hawaii consumers and businesses conserve electricity said it delivered record energy savings last fiscal year despite a 29 percent budget cut and fewer incentives.

Hawaii Energy, a program overseen by the state Public Utilities Commission and operated by Leidos Inc., said in a new annual report that 141 million kilowatt-hours of electricity will be saved in just an initial year from work during the 12 months ended June 30.

That saving represents $35 million in energy costs and is the equivalent of what could be produced by a 90 megawatt solar farm, Hawaii Energy said in an announcement Thursday. Savings over the life of the efficiency measures are estimated at $440 million.

Hawaii Energy offers a variety of incentives for consumers and businesses to cut electricity use, including rebates for buying Energy Star-rated appliances, lighting and other products.

One new effort in the recent year got Sears and Best Buy to stock and sell more energy-efficient TVs and home audio systems by giving the retailers an incentive that helped make such merchandise more profitable. Hawaii Energy also promoted the products to customers in stores.

As a result, more than 6,000 Energy Star TVs and more than 1,000 Energy Star home audio systems were sold in the year ended June 30 and will save 500,000 kilowatt-hours in an initial year compared with baseline models.

“By nudging customers and incentivizing retailers, Hawaii Energy is able to influence both the supply- and demand-side of the consumer electronics market,” the annual report said.

Hawaii Energy said TVs, DVRs, computers and other electronics consume about 15 percent of all residential power, with about half that just from TVs.

Another new initiative offered residential customers a $75 rebate for tuning up central or split air-conditioning systems. More than 600 tuneups were made in six months to save 200,000 kilowatt-hours in one year, Hawaii Energy said.

Through one of Hawaii Energy’s commercial programs, the organization provided $2.6 million for 706 small businesses and restaurants to retrofit lighting. The report said the upgrades will save 102 million kilowatt-hours of electricity and about $31 million in costs over the life of the lighting systems.

Overall, most electricity savings through Hawaii Energy went to businesses. The report said first-year savings stemming from work in the year ended June 30 will total 85 million kilowatt-hours for businesses and 56 million kilowatt-hours for consumers. Businesses received about $13 million in incentives while consumers received about $7 million.

Hawaii Energy’s budget comes solely from Hawaiian Electric Co. ratepayers on Oahu, Hawaii island, Maui, Molokai and Lanai through a public benefits fee. Last year’s budget was $27.1 million, down from $38 million the year before, which led Leidos to reduce staff and incentives.