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July, 2006 – Community Outreach – Department of Business, Economic Development & Tourism (DBEDT) State of Hawaii
Solar continues to adorn the roofs of public buildings and schools in Hawaii. In fact, two of the largest PV systems were dedicated recently on car dealerships in Hilo. Andrea Gill, Energy Conservation Analyst with DEBDT, gives a rundown of the most recent solar activities in the 50th State.
Largest PV Systems in East Hawaii Dedicated
Two net-metered photovoltaic systems at car dealerships located in Hilo, Hawaii, are now the largest grid-connected solar electric installations on the east side of Hawaii Island. They were dedicated in a ceremony on July 11 which included a Hawaiian blessing and comments from numerous project partners as well as Mayor Harry Kim.
The 64.5-kilowatt system on Big Island Toyota and 22-kilowatt system on Big Island Suzuki are third-party financed, requiring no capital outlay by the dealerships. According to Marco Mangelsdorf, president of ProVisions Technologies, Inc., the systems will be generating solar electricity at a rate below the cost of utility power, which is currently slightly above $0.28 per kilowatt-hour at the pertinent commercial rate. The Toyota and Suzuki dealerships are owned by the same family business which is also planning future installations on its other facilities.
Hawaii’s net metering law allows for alternative energy systems up to 50 kW; the 64.5-kW Toyota system qualifies because the inverter is sized for 50 kW. Other partners in the project include SunEdison, Bank of Hawaii, Apollo Alliance, and the IBEW. Contact: Marco Mangelsdorf,
marco@pvthawaii.com, 808-969-3281.
Hawaii Renewable Energy Credits Increase
The State of Hawaii has increased the tax credit ceiling for certain solar and wind installations. For solar water heaters, the tax credit remains at 35% for single-family residential, multi-family residential, and commercial solar systems. However, as of July 1, 2006, owners of single-family homes can claim up to $2,250; the old ceiling was $1,750. The multi-family residential property ceiling is still $350 per unit, and for a commercial property, the ceiling is still $250,000.
The tax credit for photovoltaic systems also remains at 35% of the cost of the system for single-family residential, multi-family residential and commercial property, but the upper limit of the credit has been raised for single-family residential and commercial properties as of July 1, 2006. The new upper limit for single-family residential is $5,000; it used to be $1,750. Multi-family residential property can still get up to $350 per unit; the ceiling hasn’t been changed for this application. The ceiling on the tax credit for commercial property has been raised to $500,000.
Wind energy systems still qualify for a 20% State income tax credit, but the ceiling for commercial installations has been doubled from the old limit of $250,000; as of July 1, 2006, the tax credit ceiling for wind power systems on commercial property is $500,000. Residential credits remain unchanged; for single-family residences, the upper limit of the credit is $1,500; for multi-family residential property, the credit can be no more than $200 per unit.
State of Hawaii Buildings Get More Efficient
A new Hawaii law seeks to make State buildings more energy efficient. After July 1, designs for State building construction or substantial renovation should incorporate LEED Silver standards, if appropriate. LEED, which stands for Leadership in Energy and Environmental Design, is a program developed by the U.S. Green Building Council. Facilities built to LEED standards demonstrate superior efficiency in energy and resource use. The State of Hawaii is now a member of the U.S. Green Building Council, and has been actively promoting energy efficiency in public buildings. Also, the City and County of Honolulu has passed a law requiring all new city facilities above 5,000 square feet to meet a minimum LEED Silver standard beginning in fiscal year 2008, except if unfeasible or inappropriate.
Hawaii’s RPS Law Strengthened
Hawaii’s Renewable Portfolio Standards law directs electric utilities to meet percentage standards of renewable energy generation, including electricity produced by photovoltaic, wind, geothermal, agricultural residues, hydroelectricity, landfill gas, municipal waste, ocean thermal, ocean waves, biofuels, and hydrogen derived from renewable energy. In addition, under Hawaii’s RPS, utilities can count electricity offset technologies, such as solar water heating, and energy efficiency measures that do not generate electricity but reduce demand. Hawaii’s RPS law was strengthened during the 2006 legislative session, adding penalties if the utilities do not achieve the targets. Hawaii’s law requires 10% renewable electricity and/or electricity savings by 2010, 15% by 2015, and 20% by December 31, 2020. In 2005, about 6.5% of electricity statewide was generated by renewable resources, with additional savings from offset technologies and efficiency which have not yet been reported by the utilities.
Hawaii Schools Will Have Solar
A new state law aims to put more solar electric systems on schools across Hawaii. The law provides $5 million in funding for a pilot program to put photovoltaics on public schools. The Department of Education will also get funds to hire someone to coordinate energy efficiency at DOE facilities. There are already more than 20 schools on several islands which have photovoltaic (solar electric) systems installed under the Sun Power for Schools program. Sun Power for Schools is funded by the Hawaiian Electric Company and its two subsidiaries, which are the electric utilities for three counties, along with voluntary donations from those utilities’ customers. The new state-funded program is expected to encourage even greater use of solar energy at our public schools