The state Public Utilities Commission staff submitted a proposal for credits that Hawaii residents participating in a community-based renewable-energy program would receive on their electrical bills.

The PUC staff submitted its proposal Wednesday in response to Hawaiian Electric Co.’s and Kauai Island Electric Utility Cooperative’s applications for community solar programs, which the utilities filed in October. A state law mandated that electrical utilities come up with a plan that would allow residents to participate in owning a renewable-energy project even if they can’t install one where they live. The plans must be approved by the PUC.

In exchange for the one-time minimum payment, a ratepayer gets an interest for 20 years in the electricity generated by a renewable project. Participants get a discount on their electrical bill. The value of the discount would vary depending on which renewable energy project a customer buys into and how much of an initial investment the customer makes.

The PUC staff said the setup would be similar to a reverse auction. Those participating in the program would be credited for the energy their share of the project produces according to the credit rate cap for that time of day. The PUC outline proposes:

>> Oahu residents who participate in a community renewable-energy program would be credited 15 cents a kilowatt-hour midday (9 a.m. to 5 p.m.), 17.75 cents a kilowatt-hour on-peak (5 to 10 p.m.) and 17 cents a kilowatt-hour off-peak (10 p.m. to 9 a.m.)

>> Maui residents would be credited 13.75 cents a kilowatt-hour midday, 19 cents a kilowatt-hour on-peak and 15.75 cents a kilowatt-hour off-peak.

>> Lanai residents would be credited 24.5 cents a kilowatt-hour midday, 24.75 cents a kilowatt-hour on-peak and 23.5 cents a kilowatt-hour off-peak.

>> On Molokai, residents would be credited 19.75 cents a kilowatt-hour midday, 20.5 cents a kilowatt-hour on-peak and 19.75 cents a kilowatt-hour off-peak.

>> Hawaii island residents would be credited 9.75 cents a kilowatt-hour midday, 16 cents a kilowatt hour on-peak and 11.25 cents a kilowatt-hour off-peak.

>> Kauai residents would be credited 10 cents a kilowatt-hour midday, 14.5 cents a kilowatt-hour on-peak and 10 cents a kilowatt-hour off peak.

Credits from the program would roll over from one month to the next. Annually, all remaining rollover bill credits would be lost.

The staff also provided outlines of key elements and parameters that the agency said were critical. In the outline, the PUC said a portion of each project should be reserved for low- to moderate-income residents, HECO’s and KIUC’s participation should be limited to an administrative role.

The PUC also said the community-based program should have an online portal, be limited to customers who are not enrolled in other solar incentives, and require 1-kilowatt minimum customer subscription.