The Public Utilities Commission has halted a plan by Hawaiian Electric Co. to help its customers finance the cost of solar water heaters, saying the utility’s program did not appear to be cost-effective and pre-empted a broader "on-bill financing" study being conducted by the PUC.
HECO unveiled its "Simply Solar" program on Jan. 3, proposing to pay the upfront cost of solar water heating systems and have customers repay the utility in monthly installments on their electric bills. HECO said it had hoped to launch the program, aimed at renters and lower-income residents, within 60 days.
The PUC said that while it was "suspending" the $55 million program, it would consider allowing HECO to continue it as a "potential interim option" while regulators study the feasibility of creating a financing system that would help utility customers pay for a wider array of energy-saving devices and appliances through their power bills.
Several groups and agencies expressed concerns to the PUC about HECO’s plans, including the state Division of Consumer Advocacy, the Hawaii Renewable Energy Alliance, Life of the Land and Hawaii Energy, the entity that runs the state’s main energy efficiency program.
In its ruling issued Tuesday, the PUC agreed with many of the concerns, including Hawaii Energy’s contention that HECO’s plan was "premature" given the on-bill financing study under way.
The PUC also questioned HECO’s plan to recover costs associated with the program. "Such program costs as filed do not appear to be cost-effective to ratepayers, requiring adjustment," the PUC said in the ruling.
"For these and other reasons the commission suspends for investigation and further review the HECO Companies" proposal, the PUC said.
HECO officials said while they were disappointed by the PUC ruling, they would work with regulators.
"We look forward to working with the commission to address any concerns and hope to make ‘Simply Solar’ available to our customers as soon as possible." said Darren Pai, HECO spokesman. "In particular, the program could help renters and other customers who have not been able to afford to pay for the upfront costs of solar water heating."
HECO said its goal under the three-year "Simply Solar" program was to provide at least 2,550 customers with solar water heaters each year on Oahu, Hawaii island and in Maui County.
The on-bill financing study is the result of a bill that the Blue Planet Foundation helped get approved in the Legislature last year. The bill received strong support from state officials.
Jeff Mikulina, Blue Planet Foundation, executive director, said he greed with the PUC ruling.
"Blue Planet strongly supports on-bill repayment that enables more residents and businesses to enjoy the benefits of solar and efficiency," Mikulina said.
"We appreciate the intent of the utility’s proposal and remain confident that the ‘Simply Solar’ program can be developed into an effective program that maximizes both cost and energy savings," he said.
