Hawaii's Science, Technology and New Media Community
SB 464 Deferred Till 30April09
As we come down to the finish line this legislative session, SB 464 could improve the economics of solar photovoltaics and job creation in the state. Coupled with our ambitious goals of weening ourselves from imported coal and oil, this seems like a plausible step in the right direction.
We appreciate the support of the conference committee decision makers to support the merit of this bill and the benefits the state will receive today and tomorrow.
The clear distinction about this bill is that the state will monetize the tax credit and increase the velocity that the $ will be put back into the economy. The original intent and focus of the 35% REITC was not fully understood, in regards to the thrust and impact. As the industry has matured, so has the adoption of the technology and its eagerness for the consumer to embrace. Unfortunately, the mechanism is gummed up, as most folks can't utilize the tax credit, as their liability is generally never big enough to make a meaningful impact in year one or subsequent years.
This causes other road blocks- systems get installed that are smaller than they could be, as the mechanism to utilize the credits are stifled.
The last point- if this bill passes, we would like to see the next critical item addressed- Grid Access. Sizing a larger commercial system has its own nuances with Net Metering restrictions that fall under the utility and the PUC's domain on how interconnections are accommodated. We hope this is a top priority at the PUC without a lengthy docket process, which can be a grueling long road to travel.
Aloha
We appreciate the support of the conference committee decision makers to support the merit of this bill and the benefits the state will receive today and tomorrow.
The clear distinction about this bill is that the state will monetize the tax credit and increase the velocity that the $ will be put back into the economy. The original intent and focus of the 35% REITC was not fully understood, in regards to the thrust and impact. As the industry has matured, so has the adoption of the technology and its eagerness for the consumer to embrace. Unfortunately, the mechanism is gummed up, as most folks can't utilize the tax credit, as their liability is generally never big enough to make a meaningful impact in year one or subsequent years.
This causes other road blocks- systems get installed that are smaller than they could be, as the mechanism to utilize the credits are stifled.
The last point- if this bill passes, we would like to see the next critical item addressed- Grid Access. Sizing a larger commercial system has its own nuances with Net Metering restrictions that fall under the utility and the PUC's domain on how interconnections are accommodated. We hope this is a top priority at the PUC without a lengthy docket process, which can be a grueling long road to travel.
Aloha
Replies to This Discussion
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Permalink Reply by Keith Cronin on -
Just to check in with the energy group, this did cross the legislative finish line about 2 weeks ago and awaits the governors signing. It is my understanding that this will need to happen by July 15, or it will automatically become a law.
From what I can tell, this will accelerate the deployment of solar photovoltaic systems in Hawaii. There could be some roadblocks, such as grid access, due to the current PUC and utility docket rulings in recent years. It should cause all of us to group together as I see grid access to some who would interpret things as an inalienable right, like freedom of speech or press. It is going to create discussions on who gets access and let me explain a bit. Lets say the utility has reached their cap, on a percentage basis, by generating capacity. Technically, they can deny access to the "last person" signing up to have a solar photovoltaic system on the grid, under the current docket framework. This could be contentious for both sides, as the utility has a responsibility to reliable power and maintaining their infrastructure, while the general populous could interpret this as onerous and undemocratic, as they just happened to be the last person "on line" to deploy a solar photovoltaic system. The utility, as we currently are all perhaps cognizant of, does not have a grid, whereas they can connect to another island or state, like most other places on the globe. This makes it technically challenging to deal with the ebb and flow of electricity. Until we run the cable to Maui, Lanai and Molokai, this will be the challenge, unless we can have a world discovery for energy storage that is inexpensive and reliable.
So, it will take a public private partnership to sort through these challenges and give stakeholders the tools they need to foster collaboration in addressing these upcoming discussions. Please participate in transitioning our island economy to a more sustainably energy harvested one by using indigenous resources, where we can.
My intuition on SB464 will mean more projects being built in the coming years where solar photovoltaics will become ubiquitous as shingles on the roof of your business or government facility. Managing the energy from a non firm resource will be our next hurdle. Too bad when they built the H3, they didn't run a few extra pipes underneath the road, as we could use solar to pump water during the day and let it flow down the H3 and use it during our peak of 5-9 PM.
Perhaps a breakthrough will occur from a more simple channel, like an eighth grade science fair?
Aloha
Keith
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Permalink Reply by Keith Cronin on
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Hi Folks
Just wanted to report back that recently this bill became law which will help pave the way for more renewables in Hawaii by monetizing the tax credit for folks who could not previously have enough tax appetite to enjoy the tax credit as it was originally designed.
This is significant, as now the state and the federal government are identifying these as cash rebates. Why are these mechanisms so important?
1. The fed 30% grant now requires the US Treasury 60 days to in essence send you a check which for all intents and purposes will accelerate cash flow for businesses and others while simultaneously encouraging rapid deployment of renewable energy projects in the US. The forms have just been released, and attached for everyone's review.
2. The state also now allows an election on the credit now due to SB 464's adoption and becoming law. We haven't seen the documentation to date, but envision it soon. We should also now see more products on the market to additionally stimulate the growth of renewables, like PPA's (power purchase agreements) due to these new mechanisms in place to foster the accelerated way in which the cash flows back to the "people".
3. If we can all agree that energy prices will rise like the tides and oil will go up as the DOW does in future months/years, this is a win-win for energy diversification in our state and allows for us to have "predictable" operating expenses for our businesses and in the future for state and federal government operations as well. The next step in this process which is going on as I type, is a way to make the utility whole for their ability to thrive in this new market place. It is important to note that the utility has long been tied to energy sales as the salvo of their growth and most ideas to stave off growth have logical unintended outcomes as perhaps it is the incorrect mechanism for change and future sustainability. By decoupling them from sales and incentivizing them in other venues will bring about the change in the way in which we utilize energy in Hawaii. The decoupling docket is on going at the PUC and we encourage all to appreciate the complexity and steps necessary to move towards a renewable future, as we are all stakeholders in the process and the utility is essential to assist in managing all of this new distributed generation on their grid. Managing alot of non firm power (wind, solar, wave etc.) requires planning on the infrastructure. This is especially challenging in Hawaii, as we can't just "plug in" to the next state to create a true grid to address the ebb and flow, so to speak.
We will meet these challenges moving forward through the spirit of innovation, collaboration, negotiation and a vision for a new energy road map for Hawaii.
Aloha
Keith Cronin said:Just to check in with the energy group, this did cross the legislative finish line about 2 weeks ago and awaits the governors signing. It is my understanding that this will need to happen by July 15, or it will automatically become a law.
From what I can tell, this will accelerate the deployment of solar photovoltaic systems in Hawaii. There could be some roadblocks, such as grid access, due to the current PUC and utility docket rulings in recent years. It should cause all of us to group together as I see grid access to some who would interpret things as an inalienable right, like freedom of speech or press. It is going to create discussions on who gets access and let me explain a bit. Lets say the utility has reached their cap, on a percentage basis, by generating capacity. Technically, they can deny access to the "last person" signing up to have a solar photovoltaic system on the grid, under the current docket framework. This could be contentious for both sides, as the utility has a responsibility to reliable power and maintaining their infrastructure, while the general populous could interpret this as onerous and undemocratic, as they just happened to be the last person "on line" to deploy a solar photovoltaic system. The utility, as we currently are all perhaps cognizant of, does not have a grid, whereas they can connect to another island or state, like most other places on the globe. This makes it technically challenging to deal with the ebb and flow of electricity. Until we run the cable to Maui, Lanai and Molokai, this will be the challenge, unless we can have a world discovery for energy storage that is inexpensive and reliable.
So, it will take a public private partnership to sort through these challenges and give stakeholders the tools they need to foster collaboration in addressing these upcoming discussions. Please participate in transitioning our island economy to a more sustainably energy harvested one by using indigenous resources, where we can.
My intuition on SB464 will mean more projects being built in the coming years where solar photovoltaics will become ubiquitous as shingles on the roof of your business or government facility. Managing the energy from a non firm resource will be our next hurdle. Too bad when they built the H3, they didn't run a few extra pipes underneath the road, as we could use solar to pump water during the day and let it flow down the H3 and use it during our peak of 5-9 PM.
Perhaps a breakthrough will occur from a more simple channel, like an eighth grade science fair?
Aloha
Keith - Attachments:
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Application.pdf, 75 KB -
energy-terms-and-conditions.pdf, 29 KB
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guidance.pdf, 138 KB
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Permalink Reply by Daniel Leuck on -
Congrats to you, your colleagues and your industry for helping to get this bill through!
Thank you for keeping us updated.
© 2010 Created by Daniel Leuck
