Rooftop Solar Permits Fall by 58 Percent in October 2014

According to a report issued by the solar industry, rooftop solar permits in Honolulu has plunged by 58 percent in October 2014.  The City and County of Honolulu issued only 518 rooftop solar permits as compared to 1,246 in October 2013.  Part of this decrease is attributed to a rule change made by the Hawaiian Electric Company that required that both the customer and the contractors installing the rooftop solar panels be approved by the utility company to prevent safety and reliability concerns.  As of October 31st, there are still 4,807 solar customers that are waiting to get approval.

Source: Honolulu Star Advertiser, 11-25-2014, www.staradvertiser.com
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Solar Farm Proposed for Waiawa

Kamehameha Schools has proposed building the largest solar farm in the state of Hawaii in Waiawa, which is located between Pearl City and Waipio in the central portion of the island of Oahu.  The land was previously approved as a residential community. but problems with market timing and financing prevented the development from starting. Under the new plan, the solar panels would feed into a 115-megawatt facility, which would be large enough to power 22,540 homes.  Kamehameha Schools stated that the project would have a low impact on the land and that the solar panels would not produce any glare or effect the views from surrounding areas.  The Land Use Commission will hear public testimony over the next few months.  If approval is given, Kamehameha Schools could start building the solar farm by June 2015 and be producing power by June 2016.

Source: Honolulu Star Advertiser, 10-23-2014, www.staradvertiser.com
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Turtle Bay Resort Adds Solar Panels to Roof

Turtle Bay Resort on the North Shore of Oahu has announced that they will be adding about 60,000 sq ft of solar panels to their roof to help bring about energy savings, but will be doing it in such a way that it is artistically pleasing to their guests.  The solar panels will create enough energy for about 8 percent of the resorts' consumption, saving Turtle Bay about $250,000 to $300,000 per year.  Scott McCormack, the vice president of real estate for Replay Resorts and Turtle Bay Resorts, stated, "We want to be leaders in the field in terms of showing other resorts how to become more green. We've been working on a number of energy conservation initiatives because, No. 1, we want to get our bills down and, No. 2, we feel like we have the responsibility to be good stewards of this land."

Source: Honolulu Star Advertiser, 9-15-2014, www.staradvertiser.com
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Hawaiian Electric Company Proposes New Energy Plan

The Hawaiian Electric Company has proposed a new energy plan that will help reduce Hawaii's dependency on fossil fuels and transition into using more renewable energy sources.  Under goal is to have HECO generate 65 percent of its energies by 2030, which would mean tripling the amount of solar power currently generated and thereby cutting the avergage bill for customers by 20 percent. However, upon closer review of the 2,731 page plan that was submitted to the state Public Utilities Commission, some local businesses and residents are unhappy with what they are reading.  For example, HECO has proposed a $55 monthly fee for each residential customer starting in 2017 as well as an additional charge of $16 for new photovoltaic customers.  HECO stated that by having the monthly fee of $55, Oahu customer would pay approximately 26 cents per kilowatt-hour, a significant decrease from the 34 cents per kilowatt-hour that they currently pay.  However, many residents do not like the idea of paying this minimum monthly fee.

Below is a summary of the proposal for non-solar customers and solar customers:

FOR NON-SOLAR CUSTOMERS
* 20 percent lower electric bill by 2030.
* $55 charge added to all customers’ monthly bill starting in 2017; but current average charge of 34 cents per kilowatt-hour will drop to 26 cents in 2017.

FOR SOLAR CUSTOMERS
* $55 charge added to monthly bill starting in 2017; current minimum bill is about $17.
* $16 monthly charge added to new solar customers’ bills in 2017.
* 16 cents per kilowatt-hour paid to new solar customers for excess power, down from more than 30 cents paid now.
* One-time installation charge for new solar customers, amount yet to be determined.

The state Public Utilities Commission will be holding hearings open to the public to review HECO's plan.  

Source: Honolulu Star Advertiser, 8-28-2014, www.staradvertiser.com
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Hawaiian Electric Company Offers Ambitions Renewable Energy Plan

The Hawaiian Electric Company has submitted a 2,731-page proposal to the Public Utilities Commission which includes the most ambitious renewable energy plan in the country. The goal is to have 65 percent of its power coming from renewable energy sources by 2030, which would help to cut customer bills by 20 percent.  The remaining power plants would be switched to liquefied natural gas, which is more energy efficient then the current method of burning oil.  The proposal states, "Our vision is to deliver cost-effective, clean, reliable, and innovative energy services to our customers, creating meaningful benefits for Hawaii's economy and environment, and making Hawaii a leader in the nation's energy transformation. Most existing oil-fired generating units will be converted to run on LNG. Older generating units will be deactivated by 2030 as new, more-efficient, quick-starting LNG fueled generators come online."

The state adopted the Hawaii Clean Energy Initiative in 2008 with the goal of getting 40 percent of its energy from renewable sources by 2030.  As of 2013, a total of 18 percent of energy comes from renewable sources.

Source: Honolulu Star Advertiser, 8-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Kahuku Wind Project Back at Full Capacity

First Wind has announced that their Kahuku wind energy project is back to working at full capacity after almost a year and a half of being shut down due to a fire that damaged the battery system at the plant.  The damage was repaired back in August 2013, but the energy output was limited to 5 megawatts as the Hawaiian Electric Company and First Wind ran tests to ensure that the new battery system was working properly,  The large turbines are now generating their maximum 30 megawatts of capacity and is being fed into the HECO grid.  This equates to enough energy to provide approximately 7,700 homes with electricity.  HECO will pay First Wind an average of 22.9 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 2-13-2014, www.staradvertiser.com
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Plan to Add 1,200 Acres of Solar Photovolatic Panels on Oahu

The Hawaiian Electric Company has presented a plan to create a huge array of solar photovoltaic panels on Oahu by partnering with several renewable energy developers. According to HECO, the plan calls for panels to cover 1,200 acres of land.  These panels would produce approximately 240 megawatts of electricity, which will provide enough power for approximately 60,000 household.  Officials at the Hawaiian Electric Company have not stated where the panels would be located or who the renewable energy developers would be, stating that they wanted the developers to have the time to do community outreach before the details of the project becomes known.  The plan notes that the Hawaiian Electric Company would purchase the power generated at an average cost of 15.8 cents per kilo-watt hour.  Currently, it costs HECO approximately 23 cents per kilowatt-hour to create electricity from burning fuel oil.

Source: Honolulu Star Advertiser, 1-26-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Kahuku Residents Concerned Abut Proximity of Wind Turbines

Kahuku residents on the North Shore of Oahu expressed their concerns to representatives of Champlin Windpower LLC, who are proposing to put up an additional 15 wind turbines at the Na Pua Makani project.  These turbines would be adjacent to the 12 that were build in 2011 by First Wind LLC.  The nearest turbines will be about 2,100 feet from Kahuku's Mauka Village. Residents have asked that the turbines be moved further away from homes, schools and the community in general.  

Champlin Windpower hired Dr. Robert McCunney, a Harvard Medical School physician who specializes in occupational and environmental medicine to speak with concerned residents. McCunney stated that his research showed that the turbines were safe and did not pose any risk to the safety or welfare of any of the people living in Kahuku. Residents were a little skeptical about McCunney's claims and stated that they could hear the wind generated from the turbines.  While the residents appreciated the clean, green energy that was being produced by the turbines, they wanted to make sure that they were located further away from them, for peace of mind if nothing else.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
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Hawaiian Electric Company Hopes to Use Battery Technology to Increase Solar Grid Capacity

Over the past few years, the state of Hawaii has one of the highest percentages of residences that have installed rooftop photovoltaic panels in the country.  However, due to the boom in solar panels, the Hawaiian Electric Company's grid has not been able to accept them all.  The problem lies in the fact that the amount of solar energy absorbed by the photovaltaic panels can vary dramatically day by day.  This can create large swings in voltage and potentially damage electrical appliances and injure utility workers.

Hawaiian Electric Company has announced that they will be working with the Hawaii Natural Energy Insititute are working together to test a new battery technology that may increase the number of homes that can connect to the grid.  The battery will act as a buffer on the circuit, and may be able to release additional power when output decreases as well as absorb power when solar energy spikes.  Initially, HECO and HNEI will try out their new batteries on a few smaller neighborhoods in West Oahu and hopes to evaluate how well they work.


Source: Honolulu Star Advertiser, 1-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaiian Electric Company May Switch to Burning Wood Pellets From Fuel Oil for Energy

The Hawaiian Electric Company is currently in discussion with Zilkha Biomass Energy, a Huston based company, and is considering using Zilkha's compressed wood pellets instead of burning fuel oil to generate electricity.  According to one estimate, HECO would save over 30 percent of its fuel costs by making the switch.  More importantly, the wood pellets are a form of biomass, which would count as a renewable energy source.  HECO has stated that they are committed to generating 40 percent of their electricity from a renewable source by 2030.  Peter Rosegg, spokesman for the Hawaiian Electric Company, stated, "We have met with representatives of Zilkha Biomass. No commitments have been made at this time. It is a promising technology but further study and evaluation are needed to determine whether this option provides a cost benefit to our customers."

The Blue Planet Foundation which has opposed the Hawaiian Electric Company's previous suggestion of burning liquefied natural gas (LNG) has given its support to the burning of wood pellets.  Executive Director for Blue Planet Foundation, Jeff Mikulina, stated, "This is exciting to us because much of the conversation to date has been about how renewables are great, but we need LNG to lower prices long term. To some it is almost fait accompli that LNG is our logical future fuel.  But Zilkha's, and similar companys', offerings can change the conversation. Here's something that not only is renewable and helps HECO comply with RPS (renewable portfolio standards), the EPA regs, and the state (greenhouse emissions) law, but it could be cheaper and available sooner than LNG."

Source: Honolulu Star Advertiser, 1-4-2014, www.staradvertiser.com
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State Awards Ameresco Inc. Contract to Improve Energy Efficiency

The State of Hawaii has announced that they have awarded Ameresco Inc a $17.4 million contract to improve the energy efficiency and to install solar panels at 33 government buildings around the islands.  It is estimated that the state will save a total of $28 million over the next two decades in energy costs by adding the solar panels and by replacing the light fixtures with more energy efficient products.  Ameresco will also add new chillers to seven of the buildings which will lower cooling costs. Governor Neil Abercombie stated, "I commend (Department of Accounting and General Services) and Ameresco for working together in developing a comprehensive efficiency and renewable energy project that is on target with our commitment to energy independence and sustainability.  Ameresco's innovative approach will assist DAGS in reaching its energy savings and emission reduction goals."

Source: Honolulu Star Advertiser, 12-3-2013, www.staradvertiser.com
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Electrial Union Wants Electricians to Install Solar Photovoltaic Systems

The International Brotherhood of Electrical Workers Local 1186 is requesting that the state of Hawaii require the use of a licensed electrician for all phases of the installation of solar photovoltaic systems. According to the IBEW, under state law the installation of solar systems meet the definition of "electrical work" and as a results would need a licensed electrician for every nonlicensed electrical worker on the job site.  According to the business manager for IBEW Local 1186, Damien Kim, there has been concern that some photovolatic systems have been install incorrectly by unlicensed individuals.  Kim stated, "The PV industry has exploded. All of these new companies have been started and they're overwhelmed with the amount of work. We're saying let's make sure it's done properly and safely. We just want to make sure it is being done in accordance with the language in the statute."

However, officials from the Hawaii Solar Energy Association contends that the majority of the work can be safely done by nonlicensed employees and a licensed electrician should only be required to do the final wiring.  Of course, having licensed electricians present for all phases on installation would dramatically increase the costs for the solar company.

Source: Honolulu Star Advertiser, 11-4-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Surge in Photovoltaic Panels Overwhelm System

Thousands of homeowners in the state of Hawaii who are hoping in install solar photovoltaic panels to their houses are now realizing that they might be a little late to the party. Several years ago when the solar market was just starting to pick up steam, there were relatively few solar panels attached to the various electrical grids around the islands, and systems could be installed quickly with no extra installation fee from the utility companies.  However, certain neighborhoods are now over saturated with panels which at times has created more solar energy then the current systems are designed to handle, causing both reliability risks and safety risks for consumers.  This has caused some utility officials to place holds on accepting new solar customers until special engineering studies have been completed an new protective systems have been installed.  For example, on certain neighborhoods in Maui and the Big Island of Hawaii, customers hoping to plug in their photovoltaic panels into the system are being asked to wait between 12 to 18 months by to energy companies.

Source: Honolulu Star Advertiser, 10-27-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Seeks to Eliminate Unscrupulous Practices By Some Solar Companies

The Hawaiian Electric Company has been receiving numerous complaints from consumers that several solar energy companies have been misleading their customers and not disclosing potential challenges that they may have when they attempt to connect their solar photovoltaic systems with the Hawaiian Electric Company grid.  According to HECO, certain neighborhoods in Hawaii have become over saturated with PV panels, which can overwhelm the company's existing grid system.  This excess solar energy can create a "back-feed" into the company's grids and can potentially damage customer's electronic equipment.  Until the existing grid can be completely upgraded, the Hawaiian Electric Company has been requiring customers to install special safety equipment, something that solar energy companies are not disclosing.

In fact, several solar companies are going so far as to telling their prospective customers that they have a "special arrangement" with HECO which allows them to bypass the special equipment upgrades, something which HECO's senior vice president for customer services, Jim Alberts flatly states as false.  Alberts stated, "No such arrangement does, or can, exist.  Hawaiian Electric is getting reports of practices from some solar vendors that could result in serious safety hazards.  Practices like this put the safety of utility workers and customers at risk and harm the reputation of the solar industry."

State lawmakers are also holding hearings to discuss various issues created by the boom in the solar industry. Topics being discussed include the increased number of sales and the sometimes shady marketing tactics that some solar energy companies are using.  State Representative, Sharon Har, stated that several of her constituents have complained that solar companies are not disclosing about what the currently levels of PV penetration is in their neighborhoods, nor are they disclosing that special engineering studies and equipment upgrades would be needed.

Source: Honolulu Star Advertiser, 10-26-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hawaiian Electric Submits Request to Build Large Solar Photovoltaic Project

The Hawaiian Electric Company is seeking approval from the Public Utilities Commission to build a large solar photovoltaic project next to the Kahe plant on the Leeward Coast of Oahu.  If approved, the facility would be able to produce electricity at the equivalent cost of 14.5 cents per kilowatt-hour, significantly below the 22.7 cents per kilo-watt hour that it currently costs to produce electricity from low-sulfur fuel oil.  HECO's vice president for power supply, Ron Cox, stated, "This is a unique opportunity that benefits our customers because it allows us to quickly develop more low-cost clean energy."  Once completed, the 50 acre site will be the largest solar farm in the state of Hawaii.

Source: Honolulu Star Advertiser, 10-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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First Wind Plans to Restart Kahuku Project

On August 1, 2012, a small fire destroyed a battery storage building forcing First Wind to close down its Kahuku wind energy facility and disconnect it from the Hawaiian Electric Company's power grid.  According to an investigation, the fire was caused by defective parts supplied by the Dynapower Corp.  First Wind has just announced that they will be restarting their wind energy project in Kahuku as soon as it finishes making repairs to their system.  This time, First Wind will be using a volt-amp reactive system made by American Superconductor, which should help regulate power fluctuations.  First Wind spokesman, John Lamontagne, stated, "We've been working hard to bring the project back online. We hope to begin testing late this month and ideally be back on line by the end of September or early October."

The project is designed to generate enough power to provide for 7,700 Oahu Households.

Source: Honolulu Star Advertiser, 8-18-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Hawaiian Electric Offers New Five-Year Plan

The Hawaiian Electric Company has submitted a new 2,200 page plan to the state Public Utilities Commission, outlining their goals and plans for the next five years.  Older, less efficient power plants, like the one near Aloha Tower Market Place in downtown Honolulu, will be deactivated and only used in the event of an emergency.  The Hawaiian Electric Company also plans to use more renewable energy on its grid systems and will be converting all of their customers to smart meters.  A smart meter would alert HECO if there is a power outage and allow also customers to control their household appliances remotely, potential saving energy and maintenance cost.  Also in the plan is a request for the Public Utilities Commission to fast-track five solar and wind energy projects on Oahu.  If approved and constructed, these five projects would add 64 megawatts of generating capacity to the island and cost about a third of the price to currently generate the same amount of electricity.  Vice president of energy resources and operations, Scott Seu, stated, "This planning includes the most meaningful promises we can make for our customers.  None of us is satisfied with the status quo. These commitments to action will move us to a clearer, more secure and affordable energy future."

Source: Honolulu Star Advertiser, 7-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Big Island Mayor Requests that Landfill Remains Open Longer

The Big Island of Hawaii's primary landfill in Hilo is currently scheduled to be closed down in five years due to reaching its maximum capacity.  However, Mayor Billy Kenoi of Hawaii County (Big Island of Hawaii) is requesting that the landfill remain open an additional five to seven years after that.  Kenoi is proposing building a garbage incinerator plant that would burn solid waste material into electricity within the next three or four years, but would like a few years of buffer in between just in case of delays.  Kenoi stated, "Our goal is to have in the next 31⁄2 years a long-term solution on the ground and implemented.  Any project can take years. We've never let previous timelines stymie us."

There is a garbage incinerator on Oahu called HPOWER which currently burns approximately 2,000 tons of solid waste material per day and provides approximately 7 percent of Oahu's electricity.  However, one challenge facing the Big Island of Hawaii is that the entire county only generates 419 tons of solid waste per day.  Experts note that 500 tons per day is the minimum amount of waste necessary to make the garbage incinerator plant economically efficient.  There is also the option of sending some of the Big Island of Hawaii's solid waste to Oahu's HPOWER plant by boat.

Source: Honolulu Star Advertiser, 7-1-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hawaii's Solar Energy Market Seems to Be Slowing

The number of photovoltaic installation panels across the state of Hawaii had increased by 150 percent in 2011 and an additional 172 percent in 2012.  However, in 2013, it appears that demand for new solar panels is beginning to slow down and industry experts are expecting only a 66 percent increase by the end of this year.  With dozens of new photovoltaic installation companies and franchises opening up across the state each month, companies are forced to offer fantastic giveaways and promotions to try and create new business.  From free all-expenses-trips to Las Vegas, to free iPads, to $1,000 cash rebates, to working with local celebrities, companies are trying to get creative with their marketing tactics.

Marco Mangelsdorf, who works in the photovoltaic industry and has been tracking its data, stated, "While it may be too early to say that there's a growing air of desperation among many PV integrators in the state, the apparent shrinking pie, especially when one compares the first five months of this year to the last five months of 2012, is prompting an expanding number of companies to offer bigger and bolder bribes to get homeowners to pick them."

Part of the challenge is that the state of Hawaii had decreased the amount of state tax credit for the installation of new photovoltaic systems systems on January 1, 2013.

Source: Honolulu Star Advertiser, 6-24-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Electric Cars in Hawaii Still Pay Equivalent of $3.69 per Gallon

According to a report released by the U.S. Department of Energy, Hawaii drivers who own an electric car may not be getting the massive savings that they were hoping for.  While the national average that electric car drivers spend for a "gallon of gas" equivalent is just $1.14, Hawaii drivers are spending $3.69 per gallon equivalency.  This is due to the extremely high cost of electricity needed to "fuel" these electric cars in Hawaii.

The U.S. Energy Information Administration stated that in April 2013, Hawaii residents paid an average of 37 cents per kilowatt-hour for electricity.  Nationally, the average for that same month was 12 cents per kilowatt-hour.  To encourage the use of electrical cars in Hawaii where electricity is so expensive, many shopping centers and offices are now offering free charging stations.  Other groups are encouraging the installation of a solar system at home to power your electric car with the sun.

The federal government has created a new website called eGallon at energy.gov/eGallon which helps drivers calculate the actual cost of operating their electric vehicles.  U.S. Energy Secretary. Ernest Moniz, stated, "Consumers can see gasoline prices posted at the corner gas station but are left in the dark on the cost of fueling an electric vehicle.  The eGallon will bring greater transparency to vehicle operating costs, and help drivers figure out how much they might save on fuel by choosing an electric vehicle. It also shows the low and steady price of fueling with electricity. Not only can electric vehicles save consumers on fuel and reduce our dependence on oil, they also represent an opportunity for America to lead in a growing, global manufacturing industry."

Source: Honolulu Star Advertiser, 6-22-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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