‘Solar without a roof’ program set to debut

Hawaii’s largest electrical utility is looking for companies, nonprofit organizations and other entities interested in developing small commercial solar farms partially financed by residential and commercial customers who would get discounts on their electrical bill.

Hawaiian Electric Cos. announced Tuesday that it will begin accepting applications July 11 to develop what it calls “community-based renewable energy” solar farms on Oahu, Maui, Molokai, Lanai and Hawaii island.

Approved developers would be able to enlist Hawaiian Electric ratepayers anywhere on the same island as a solar farm in the program to buy a share in the project that entitles the ratepayer to a credit on their monthly bill for 20 years.

Peter Rosegg, a Hawaiian Electric spokesman, said it isn’t possible for ratepayers to gauge what kind of return they might gain from participating given that no projects have been proposed or approved yet.

The utility received approval for the program from the state Public Utilities Commission on June 29. This program — also called “solar without a roof” — is different from one the utility proposed in 2015 but stems from a state law that was enacted that year and ordered electrical utilities to formulate a program to let residents participate in owning renewable-energy facilities if they don’t have space to install their own.

Hawaiian Electric envisions that renters, some condominium owners, business owners and others can benefit from the new program.

“One of our principles is that this energy transformation leaves no one behind,” Shelee Kimura, Hawaiian Electric senior vice president of business development and strategic planning, said in a statement. “We believe this program can give many more people the chance to benefit from the availability of solar and participate in the clean energy movement.”

An initial phase of the program allows 8 megawatts of solar energy production capacity to be developed — 5 megawatts on Oahu, 1 megawatt each on Maui and Hawaii island, and 0.5 megawatts each on Molokai and Lanai.

By comparison, a 5-megawatt solar farm in Kalaeloa occupies 36 acres.

Customer bill credits per kilowatt-hour are set at 15 cents on Oahu and Hawaii island, 16.5 cents on Maui, 22.5 cents on Molokai and 26 cents on Lanai.

Customers will be limited to spending an amount equal to their annual electricity bill for a share in a community solar project. That will entitle the customer to the fixed credit for 20 years. The credit is portable if a customer moves elsewhere on the same island, or can be sold back for a reduced price if a customer leaves the island.

Prospective project developers can find information about eligibility and applications at hawaiianelectric.com/communitysolar.

An independent observer paid by Hawaiian Electric and reporting to the PUC will monitor the program to ensure fairness and rule compliance, the utility said.

A second phase of the program to include renewable energy technologies beyond solar is expected in about two years and will have special provisions for low- to moderate-income customer participation, Hawaiian Electric said.