Rooftop solar owners who have systems connected to the electrical grid without Hawaiian Electric Co. approval could end up locked out of any solar savings but still paying for their photovoltaic system.
Customers must submit Net Energy Metering applications before connecting their rooftop solar systems to the grid as a result of HECO’s September 2013 rule change requiring customers and contractors to be approved by the utility before installing photovoltaic systems.
HECO has begun sending notices to Oahu customers with active rooftop photovoltaic systems who have not gone through the NEM application process, warning that the utility will lock their systems if customers don’t elect to disconnect on their own.
The utility began sending out letters in late September to customers who are believed to be connected to the grid without prior approval requesting that those residents submit an application for interconnection review.
"We continue mailing letters to customers we believe have unapproved solar systems interconnected, asking that they disconnect. We’re asking in the interest of safety, reliability and fairness to those doing the right thing by waiting for approval before interconnecting," said Peter Rosegg, HECO spokesman. "We have people telling us they have disconnected and are following up with others."
There are more than 1,000 unapproved systems connected to the grid, according to Leslie Cole-Brooks, executive director of the Hawaii Solar Energy Association. HECO said it wasn’t able to supply its own estimate of unapproved systems.
"Utility customers must have written permission from the utility before they connect a PV system to the grid. Unfortunately, some customers have been connecting systems without utility approval,"Cole-Brooks said. "Not only is this unfair to customers who are waiting in the interconnection queue for their turn, but customers with rogue systems run the risk of having their systems shut down by the utility. This means that a customer with a rogue system might end up having to pay a lease or loan payment for the system without getting the actual benefits."
If disconnected, these residents will no longer be able to use the energy provided by their PV system and will resume their original electrical payments to HECO. Those who have signed up for a leasing agreement with their solar contractor may have to pay for their rooftop solar system despite it not providing any energy to their home or benefit to their electric bill.
The Department of Commerce and Consumer Affairs urges solar customers who believe their solar company misled them about connecting to the grid to call the state office.
"We really do encourage people if they have run into a situation, which they felt they were deceived or misled about being able to plug into the system, about being able to get the benefits of photovoltaic energy off of their electric bill. We would definitely want to hear from them,"said Brent Suyama, communications officer for the Department of Commerce and Consumer Affairs.
DCCA said residents may be unaware that they have an unapproved system until they receive a notice from the utility. Customers should contact either the Regulated Industries Complaints Office at 587-4272 or the Office of Consumer Protection at 586-2636.
"Some companies were offering customers the ability to hook up to the grid before they received approval for the system," Suyama said. "If a contractor were to tell you it was OK to turn your system on before you have approvals, in that scenario we would ask you to call the Regulated Industries Complaints Office."
The Office of Consumer Protection would handle the instance where a solar company hires an outside sales office.
It’s not unheard of for a contractor or that type of company to hire an independent sales company to do the sales pitches for them; that would involve the Office of Consumer Protection, Suyama said.
In some cases residents may not be aware of the status of their system: whether their NEMapplication still needs to be approved or was not filed at all, said Suyama.
HECO will continue to send out letters in batches. Before sending each warning the utility confirms that an unapproved system is still connected to the grid.