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PUC approves two solar power programs

New rooftop solar programs that will allow customers to once again feed power to the grid and receive credits were approved by the state Public Utilities Commission on Friday.

The two new programs allow sale of rooftop solar power to Hawaiian Electric Cos. grids during peak nighttime periods only and during daytime hours with a system that allows the utilities, including Maui Electric, to control the flow of photovoltaic power to the grid. One of the difficulties utilities have had with past PV systems is that solar power flows at varying rates based on the sun into the grid unchecked, forcing the utility to curtail or increase generation of power to balance the system.

There has been an evolution in the acceptance of small-scale PV in Hawaii. The original “Net Metering” program allowed PV customers to sell their excess power to the utility at market rates while still drawing power from the grid at night. Those customers paid only an $18-per-month fee to connect with the grid and received payment for power sent to the grid based on market rates for oil-generated power.

Concerns about PV capacity on the grid and the tilting of the cost of grid maintenance and fuel to those without PV systems were raised by HECO. The PUC approved the PV cap in October 2015 under the new “Customer Grid Supply” program, locked in the PV crediting rate at 23.1 cents per kilowatt-hour on Maui and raised the minimum monthly bill to $25, and created the “customer self-supply” option once the cap was reached.

That meant residents purchasing PV systems could no longer export their excess solar power but could set up battery storage, or “self-supply,” systems while still receiving power from the utility.

In Friday’s decision, the PUC approved:

• The “Smart Export” program, which offers a new option for customers installing rooftop PV combined with a battery energy storage system. A customer’s energy storage system will recharge during the daytime with energy captured from their PV system. The energy storage system will then power the home in the evening with an option to export electricity back to the grid. Those customers would receive a credit on their bills of 14.41 cents per kWh on Maui; 16.64 cents per kWh on Molokai and 20.79 cents per kWh on Lanai for sending power to the grid during nondaytime, peak hours. Under the initial terms, the Smart Export program may accommodate about 3,500 to 4,500 customers on Oahu, Maui, Molokai, Lanai and Hawaii.

• A successor to the Customer Grid Supply program, “CGS+” or “Controllable CGS.” CGS+ customers can install a PV-only system with no energy storage that exports energy to the grid during the daytime but utilizes advanced equipment that allows the utility to manage power from the CGS+ system. For example, when grid conditions require, the utility may reduce CGS+ system output in order to maintain a stable grid. Under the initial terms, the CGS+ program may accommodate about 5,000 to 6,000 customers on Oahu, Maui, Molokai, Lanai and Hawaii. Credit rates for electricity sent to the grid are 12.17 cents per kWh on Maui, 16.77 cents per kWh on Molokai and 20.80 center per kWh on Lanai.

In addition, the PUC allowed current CGS customers to continue to receive their higher bill credit rate for the next five years.

The PUC also allowed existing Net Metering customers to add “nonexport” systems, such as batteries, while retaining their favorable status and authorized activation of new “advanced inverter” functions in PV and storage systems that support the grid during different types of grid disturbances.

For more information, go to the PUC’s website at puc.hawaii.gov and look up Docket No. 2014-0192.

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