Hawaiian Electric is now accepting applications for their newly announced Battery Bonus Program. The program will provide Oahu residential and commercial customers with a cash incentive to add energy storage to an existing or new rooftop solar system. This is an effort to help Hawai’i move towards the goal of 100% clean energy by 2045 and is intended to avoid potential power shortages in the next year or two, due to the AES coal-fired plant being set to retire in September 2022.
- Accepted customers for the first 15 megawatts will receive $850 per kilowatt.
- Customers who sign up for the next 15 megawatts will receive $750 per kilowatt.
- Customers who sign up for the last 20 megawatts will receive $500 per kilowatt.
The program has been capped at 50 megawatts supplied from storage. In order for the customer to receive the full amount, Hawaiian Electric will confirm by checking battery data that the system is meeting its committed performance in the program.
This program is available to new and existing residential and commercial customers with rooftop solar and a battery storage system charged from on-site solar generation under the Hawaiian Electric’s Net Energy Metering, Customer Self-Supply, Customer Grid-Supply, Customer Grid-Supply Plus, Smart Export or Standard Interconnection Agreement programs.
The owner of the solar-plus-storage system will receive the incentive. That can be the residential or commercial customer owning the system or a company that leases the system to the homeowner or business.
The total program term is 10 years. Customers who participate must use and/or export electricity stored in the battery at the committed amount on a firm two-hour schedule specified by Hawaiian Electric between 6 p.m. to 8:30 p.m. (for example, 6:15 p.m. to 8:15 p.m.) daily including weekends and holidays through December 31, 2023.
Once the battery is installed and operational, there is a 30-day period to confirm the system works properly. Seven consecutive days of operational performance data will be collected to show how much the battery is exporting during the peak period, verifying the incentive amount. Hawaiian Electric must pay the incentive within 30 days after the data is delivered.
Applications will be accepted through June 23, 2023, or until the 50MW cap is reached. If the storage system’s contracted capacity or export amount changes, it must be corrected within 30 days from notification or a $100 per month charge will appear on the customer’s bill.
Customers are to work with a solar contractor to add storage to an existing solar system or install a new solar-plus-storage system. Please contact us for a free consultation so we can help answer your questions and address any of your concerns.
Securing a building permit with the City & County Department of Planning and Permitting or proof of permit application is required as part of the application, and will determine the incentive amount.
This incentive payment is considered income. Hawaiian Electric will provide participants with tax forms and report information to the IRS and Hawai‘i Department of Taxation. Be sure to consult a tax preparer with concerns about individual circumstances. In some cases, federal tax credits may be available.
Customers may end participation before the 10-year commitment with a 60-day written notice to Hawaiian Electric and must repay a prorated portion of the incentive.
Please refer to Hawaiian Electric’s website for more information.