Homeowners hoping to lower the cost of their electricity bills through a photovoltaic system may be surprised that Hawaiian Electric Company could require what’s known as an ‘interconnection study.’ Such studies can be extremely expensive, reaching into the thousands of dollars.
“The purpose of that is to make sure you can add a new PV or renewable energy system to that area without effecting the safety or reliability of the grid,” explained HECO spokesman Darren Pai.
If a neighborhood is generating 15 percent of peak demand electricity through a combination of photovoltaic systems, homeowners wanting to install a PV system of their own are required to pay for the study. However, even after an interconnection study is completed, HECO may still deny permission for a PV system to be built.
“The bottom line is, it’s pretty much a show stopper,” said Jeff Davis, owner of Solar Services Hawaii and host of the AM radio show Hawaii’s Tomorrow on KGU-760.
Just recently Davis was contacted by a Kailua resident who was told he needed an interconnection study before moving forward on a PV system. HECO has a map on its web site that shows Oahu residents if their neighborhood has reached the 15 percent threshold. (Click here for map)
The utility company could not say how much a typical interconnection study costs, but confirmed it varies for each individual business or homeowner.
“It’s the technical work that’s involved,” said Pai, when discussing study prices. “It’s the expertise of the consultants and it’s a really involved technical study.”
To date only two interconnection studies have been performed on Oahu, both by commercial customers.
Davis says residents confronted by the high cost of such a studies usually give up on the installation of a PV systems, which can cost up to $15,000 but save a homeowner as much as $120 per month on electricity.
“I have never heard of anyone going through the process,” said Davis.
Ironically, the burden of keeping Oahu’s power grid running smoothly through the regulation of photovoltaic systems appears to be in direct contradiction to state law. By the year 2030 forty percent of the electricity sold by HECO and its subsidiaries on Maui and the Big Island is required to come from renewable sources.
The Public Utilities Commission has brought stakeholders together to examine whether the 15 percent threshold that triggers interconnection studies can be increased. HECO is also investing in new technologies that could eventually allow the expanded use of photovoltaic systems.
“Really what we want to do is encourage as much PV as possible,” said Pai. “It’s really going to be part of a whole range of solutions that we need if we’re going to reach this clean energy goal.”
Meanwhile, companies that install PV are wondering whether enough progress will be made to keep all of them in business in the coming years. Davis says if the pie of potential customers continues to shrink, some companies may go belly up.
“If these things start shutting down, your eighty-five solar companies out there will dwindle.”
According to HECO, more than 50 percent of a home’s energy cost is directly related to the cost of oil.
However decoupling, which was approved by the PUC in August of last year, may be impacting some HECO customers more than others. The initiative allows the utility to meet the state’s renewable energy goals by breaking the historic link between electricity usage and utility revenues.
“If you use more (electricity) than another person by a large degree, you pay more for your kilowatt hour,” said Davis.
Although state and federal tax credits of 30 and 35 percent respectively are available for the installation of photovoltaic systems, Davis encourages Oahu residents to first look at solar water heating.
“Solar hot water for the amount of money you spend and the roof space you use is by far the most obvious attractive route to take.”
Davis says a typical solar water heating system costs $6,000 but can save as much as $80 per month for a family of four.
See the original article at: KHON2 Local News
