Reducing electricity rates on islands 

The sunny state of Hawaii could be saving $3 to $7 billion by accelerating its transition to the clean energy goal. It’s been validated by the experience of Kauai, where a new storage park decreases the island’s electricity rates. A new law in Hawaii commits to pursuing clean energy aggressively. Hawaii’s legislature aim of 100 percent renewables by 2045 and Hawaiian Electric Industries is chasing a state-approved plan to fulfill this aim. Studies have shown that moving faster towards this aim could save Hawaii $3 to $7 billion between 2020 and 2045. The savings range from $3 to $7 billion, reflects two points: 1) moderate renewables costs combined with low oil prices (for $3 billion in savings); and 2) low prices with high oil prices (for $7 billion in savings). Kauai has shed light on by relying on battery storage  and to store solar energy for later release onto the network.  
 

New solar-plus-storage system on Kauai
 
Kauai is a co-op utility providing power showing how to adopt to solar power quicker. It’s advanced from 8 percent solar energy in 2011 to 44 percent now, which is  27 percent above for the rest of Hawaii. The island wants to develop 50 percent of its electricity from solar energy by 2023, and 70 percent by 2030. The price of renewable energy from a new solar-plus-storage system on Kauai will be 11 cents per kilowatt-hour. 
 

Modernize island's grids
 
Hawaii’s governor signed a law stating that by 2020, the utilities commission are obligated to create performance incentives and penalties to tie the utility’s profit to its achievement on performance metrics. This breaks the link between investment levels and allowed revenues. Two of the key performance measures affordability of electric bills and rapid integration of renewable energy. In response, Hawaiian Electric has been working with the National Renewable Energy Laboratory to research ways to modernize its island grids to incorporate low-cost solar power.  The answer for Hawaiian Electric is to run the Rhodium Group’s numbers through its own utility model. This would assist with creating its own estimate of the price reduction from a fast clean energy ramp. If the public utility doesn’t have a planning model for this purpose, the utility may need to first upgrade its planning model then re-run the Rhodium Group’s analysis. Assuming that Hawaiian Electric validates the Rhodium study’s results then it should roll out an aggressive solar energy ramp. They’ve been working with the National Renewable Energy Laboratory to understand how it can modernize its island grids to incorporate low-cost solar to  quicken its pace to accelerate its renewable energy transition. 
 
These steps lead to its happier customers receiving lower electric rates while Hawaiian Electric could receive performance incentives under Hawaii’s new state law. If you want to find out what solar panels are right for you, go to HahaSmart.com and try our price checker tool. You can see how much you can save over the next 20 years by going solar, and we can help find local solar installers who can help. For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.