A bill that would reduce the amount of credit homeowners receive for excess electricity produced by their rooftop photovoltaic systems was roundly criticized by industry officials and other renewable energy proponents who testified against the measure at a hearing Monday.
State Rep. Denny Coffman (D, Holualoa-Kailua-Kona-Honokohau) said he introduced House Bill 1256 in an attempt to address concerns that the boom in PV installations is reducing the amount of revenue Hawaiian Electric and its subsidiaries are able to collect to cover their fixed costs. Those "lost contributions to fixed costs" ultimately are borne by ratepayers who don’t have PV systems, according to the bill.
The solar power generated by homeowners and small businesses that participate in HECO’s net energy metering program is first used to satisfy energy demands on-site. Any surplus energy flows back into the electrical grid, and the utility customers receive credit at the retail rate. The credit can be rolled forward for one year and redeemed when electrical demand exceeds the amount being produced by the PV panels, such as at night or during cloudy days.
Under Coffman’s proposal, HECO customers would be compensated for excess energy production at a lower rate, similar to a wholesale rate. The amount would be equal to what HECO pays small energy producers under its feed-in tariff program, currently 21.8 cents a kilowatt-hour. In 2012, HECO customers with PV received an average of 33.2 cents a kilowatt-hour credit for excess electricity.
If Hawaii wants a sustainable program for customers with PV systems, it must change the policy to one that requires customers to purchase energy at a retail rate and sell it to HECO at a wholesale rate, Coffman said.
The bill was heard by the House Committee on Consumer Protection and Commerce. A decision on the bill’s status was expected Wednesday.
Among the groups testifying against the bill were the Hawaii Solar Energy Association, Sierra Club and Blue Planet Foundation.
Hermina Morita, chairwoman of the Public Utilities Commission, testified that while she supported the intent of the bill, she felt it was premature given the fact that the PUC will soon launch a study examining renewable energy procurement methods, including the net energy metering and feed-in tariff programs. The report is due to be completed in September, she said.
Richard Wallsgrove, a program director for Blue Planet Foundation, testified that the analysis of net energy metering used by Coffman in the bill was too simplistic. Wallsgrove said a Blue Planet analysis of HECO’s net energy metering program showed customers actually sent more electricity into the system than they received, providing a net benefit to the utility.
