(Credit: Hawaiian Electric)Hawaiian Electric's Battery Bonus program, which offers customers a cash incentive and bill credits for adding battery storage to their rooftop solar systems, has reached a significant milestone on O'ahu, with 30% of its allotted capacity filled.
Eighteen months after the launch of the program, Tier 1 limit of 15 megawatts of installed capacity has been reached, so new customers enrolling in the program will now be assigned to Tier 2, which covers the next 15 megawatts. Tier 3 will cover the remaining 20 megawatts for the program, which is limited to 50 megawatts on Oahu, according to Hawaiian Electric executives. The transition from Tier 1 to Tier 2 on Oahu has no impact on Maui, which is limited to 15 MW.
Battery Bonus, which began in July 2021, has a 10-year term and requires customers to use and/or export electricity stored in the battery between 6 and 8:30 p.m., according to the company. After the battery is installed and running, data on its operational performance for seven days in a row will be gathered to indicate how much the battery discharges during the 2-hour peak time, confirming the incentive amount. To approve the installation as part of the validation process, further information such as inverter information, permits, and other documents are needed.
Customers will receive a one-time, upfront payment based on the size of their battery system as part of the incentives. Participants also receive bill credits for excess electricity exported to the grid, as well as a monthly peak capacity payment based on the size of their battery. On Oahu, the one-time payment is reduced from $850 per kW of installed battery capacity in Tier 1 to $750 in Tier 2. When Tier 2 is full, the one-time payment in Tier 3 is reduced again to $500 per kW. The transition between tiers has no effect on the monthly export credit or peak capacity payment. The program's application period runs through June 20 on Oahu and June 30, 2024, on Maui, or until the cap is reached.
In July of 2022, Wärtsilä announced it would be supplying energy storage systems to clean energy company Clearway Energy Group in order to increase Hawaii's use of renewable energy supporting the state's goal of generating 100% renewable energy by 2045. According to Wärtsilä, accelerated adoption of renewables can reduce electricity production costs by up to 50%.
Guest Author Program
The E+E Leader Guest Author Program is an opportunity for Industry Experts & C-Suite Executives to share their views, opinions, experience, and best practices with an audience of countless C&I professionals. Content should be vendor neutral and align with the editorial focus of the quarter. Email Jessica Hunt to secure a publication date and topic approval.
