Today we learned that we surpassed 18mW of NEM installations on Oahu, more than doubling the previous year.
Maui saw even more growth- 6.6mW, up from almost 2mW the year before.

Its clear that a confluence of reasons contributed to the sustained spike in activity.
1. High oil prices- $100 a barrel impacts electricity costs.
2. Reduced costs of solar panels, which comprise the lions share of the costs.

Ultimately, consumers want to reduce and stabilize their energy costs and solar has been the vehicle to achieve this.

Well, we now see that Tier III FIT has arrived in Hawaii!

It was opened on Dec 30th, 2011.

While everyone was enthusiastic about the announcement, one item passed by the industry- a lack of a carve out between Tier II and Tier III.
So, what does this mean to Hawaii, developers and our goals of weaning ourselves from imported fossil fuels?

Quiet simply, with only 15mW allocated for Tier III and a huge reserve queue for Tiers II & III, that we are limited in capacity and scope of the programs initiative.

What’s the solution?

Clearly we need the utility, the PUC and the industry to work together to find a solution to this challenge ASAP, as the demand for projects and the people of Hawaii are stopped until a solution can be found.

What would you recommend?

To a happy and renewable new year!

Which much surprise and enthusiasm, the PUC has just released the next step in the Hawaii Tier III FIT program.

The utility and the IO in conjunction with the PUC have made some amendments to the program as well as some additional adjustments to the previous programs in Tier I & II.

I envision this will open the doors to alot of development in Hawaii in 2012.

If you need assistance in developing a project in Hawaii, we look forward to hearing from you.

Aloha

Keith

Was contacted the other day to offer some insights into the solar industry and what is trending in companies.

Click on this link, to learn about things that are happening locally and nationally.

Let me know what you think!

Hawaii is closing in on plans for what I’m calling “Megawatt Mania”.

Between a 200 mW RFP for PV, Tier 3 FIT- which is up to 5mW per system, Castle and Cooke’s 20 mW farm in Mililani, Sempra’s planned 300 mW farm at Pearl Harbor, we have quite a show of solar force in the pipeline!

So, what does all of this mean to Hawaii, consumers, the utility and the PUC?

For Hawaii- its the incremental steps towards a renewable energy future. We know intuitively that this is the place to do it. Abundant natural resources and high energy prices creates an equation for it to flourish here, if anywhere, right? Not necessarily.

We have an old and small grid on an island chain in the Pacific. Determining whether or not we can add more non firm distributed generation is open to interpretation and being questioned right now.

Would the consumers be happy?

Short answer is a resounding yes! With PPA’s or FIT structures, being able to have a fixed rate for electricity over time, is a long time coming. Unless you want to buy your own diesel in days of past and run your own generator, this was not an option for the average folks. Now with falling solar module pricing, lenders that are comfy with the economics, the consumer is becoming equally inured into the game plan.

How will the utilities position play out?

Hard to postulate but a few thoughts- their business model is changing rapidly, as the ability to sell kW’s is declining, as self generation is climbing across all sectors- retail, wholesale- commercial, industrial etc.

Will they end up being toll booth operators and manage the transmission and distribution? Yes and no. Yes, this I believe will still be their domain for some time and perhaps retiring some of their old assets will be part of the future.

The PUC has to juggle more non firm energy with ensuring a highly reliable grid. They have their work cut out for themselves.

Finding the storage mechanism will be the holy grail, looking down the oil pipeline of time for this isolated archipelago.

Perhaps we will figure it out first and carry this technology to the rest of the country?

We are moving forward with a clean energy future, the only question will be at what speed.

Aloha,

Keith