We hope you’re in the midst of a wonderful holiday season, spending time with family, eating good food, and enjoying our warm Hawaii sunshine!

2010 has been an exciting year for renewable energy in Hawaii and for us here at Sunetric. The solar outlook has never been brighter – state and federal governments continue to extend generous incentives for commercial and residential solar, and in October, Hawaii state regulators approved a revolutionary Feed-In Tariff. This new program allows companies generating up to 500 kilowatts of renewable energy to use a standard contract for pricing, terms and conditions when selling power to HECO’s utilities on Oahu, Maui and the Big Island – this should open incredible new horizons in energy independence for our state, and we’re elated to be at the forefront of this positive change for Hawaii.

As a company we were very proud to be voted Hawaii’s Best Solar Company by the Star-Advertiser and listed as the Top Solar Company in Hawaii Business Magazine’s Top 250. Additionally, our founder, Sean Mullen was highlighted on Pacific Business News prestigious Forty Under 40 list as a individual making a difference for Hawaii’s future. In our seventh year of business, we achieved a number of exciting milestones in 2010. We grew our professional management team, we moved in to a brand-new, state-of-the-art office space in Kailua, and just before the new year, we are set to cross the threshold of 100 employees, ALL IN HAWAII! We are also nearing completion on the largest rooftop solar installation on Oahu for Y Hata & Co., which when complete will add to our accomplishments of the largest rooftop- (Kona Commons) and ground-mounted (Wilcox Memorial Hospital) PV systems in the state.

Building off of the excitement and promise of the past year, we’re more enthused than ever about Hawaii’s energy future – 2011 stands to be a remarkable time for renewable energy; we look forward to sharing it with you, online, in the community, at events, and where-ever the sun shines!

Happy Holidays and all the best from Sunetric in 2011!

There was a great article in the December 2010 – January 2011 Building Management Hawaii magazine by Lance Luke that talked about what went into the Y. Hata solar system installation.<br/><br/> According to the article, “When food distributor Y. Hata was looking for a way to reduce its energy cost, four companies found the solution for them.  Locally-owned and operated roofing company Surface Shield Roofing, Pacific Industrial Coatings, Construction Management Inspection (CMI), and Sunetric partnered to provide a roofing and solar system that reduced energy cost and enhanced the integrity of the roofing system.”<br/><br/> The article went on to say, “The roof mounted photovoltaic (PV) solar system is one of Hawaii’s largest at 600kW and will include 2,616 230 watt solar modules on the roof.  Estimated energy savings through lower electrical cost from the PV system and cooler interior spaces due to the new roofing system is estimated to be around 25% or more.”  <br/><br/> To read the full article please click here.

Our friends over at Hawaii Energy came out with a really great article, Gifts that Keeps on Giving: Hawaii Energy’s Top 5 Energy-Saving Gift List.<br/><br/> Hawaii Energy is encouraging everyone to promote energy conservation and efficiency by purchasing gifts that save electricity and decrease the State’s oil consumption.  These are gifts that keep on giving with the additional benefit to the recipient of decreased electric bills.<br/><br/> Their top 5 picks were:<br/>

1. CFLs
2. Advanced power strips
3. Electricity usage monitor
4. ENERGY STAR refrigerator
5. And, a solar water heating system

<br/> These top 5 picks are all excellent and will greatly help to reduce your electricity bill.  However, why not replace number 5 (solar water heating system) with a photovoltaic system instead?<br/><br/> As we’ve mentioned before, solar water heating has proven to be a tremendously valuable technology in the past, but there are only a few uses for solar-heated hot water in your home – laundry, dishes and bathing.  <br/><br/> Conversely, solar electricity can power your TV, run your A/C, cook your dinner, wash and dry your clothes, charge your cell phone, power your computer, clean your house and more! As Photovoltaic technology has improved in efficiency and costs have come down, Sunetric believes that in nearly all cases, an investment in a photovoltaic system will provide better return than one in a solar water-heating system (Click here to view our white paper). <br/><br/> By adding a photovoltaic system to your house along with CFLs, advanced power strips, an electricity usage monitor and ENERGY STAR certified appliances, you’re creating an “eco-friendly” house, and what better gift for you and mother nature.

APRIL 2011 UPDATE: HECO offers a ‘one-time opportunity’ for residential customers to switch to FIT, but it might not be a good fit after all. Read more.<br/><br/> We’ve already written about the Feed-in Tariff (FIT) system being approved in Hawaii and how it has the potential to really change the renewable energy game on Oahu, Maui, and the Big Island. The basic concept is that it streamlines the process of selling renewable energy back to the utility company. The process used to be exceedingly difficult, with extensive negotiations—it was not something that an individual with a small solar installation was too thrilled to undertake. Now selling extra energy back to HECO is as simple as registering on the website and filling out an application. <br/><br/> The new initiative really is a game-changer, but how does the Feed-in Tariff specifically affect the people and our state as a whole? <br/><br/> First off, if you’re a residential owner, don’t get too excited about FIT. You are eligible for the program, but it is probably not the most economical option for you. FIT customers are locked in to a fixed rate, and a discounted rate at that. Anyone who generates less power than they use, on average, should instead pursue a net electricity metering (NEM) plan. Under NEM, during those times when your home or commercial building is generating more power than it’s using, you get paid at the retail electrical rate – which is usually going to be higher than the discounted FIT rate. FIT is instead a match for commercial properties that consistently generate MORE power from their rooftop than they draw for their own needs.<br/><br/> Maybe the most important big issue that the Feed-in Tariff addresses is that of energy independence—that is to say, energy independence for our state. The FIT legislation streamlines the process by which large commercial customers can contribute to the future of Hawaii’s energy portfolio, putting more clean, safe, renewable energy on the grid which can then be shared by the rest of the State. <br/><br/> Prior to the Feed-in tariff, it was more than a little difficult for these big operations to negotiate with the utility to provide excess energy to the utility, rendering it an unattractive option for many. But now that’s changed, and for Hawaii, that means a tremendous opportunity to contribute to the future of the state as a green energy haven.<br/><br/> By eliminating that burdensome negotiation process with HECO, FIT will also encourage the adoption of large-scale solar power across the state. In the long term, this kind of increase in interest in solar power will lead to a real opportunity for Hawaii to become energy independent, to end the reliance on fossil fuels from the mainland, and to create a state which is environmentally safe, clean, and one in which energy is finally affordable. <br/><br/> And speaking of affordability….<br/><br/> It’s no secret that Hawaii suffer with some of the highest energy prices in the nation. This is partially because of the difficulty that we have in importing energy resources from the mainland. The cost of transportation is high and that cost is passed on by the utilities to the consumer. The new Feed-in Tariff will mean that Hawaiians have new and “greener” alternatives for our electricity needs, as large providers step up to profit from their solar generation investments. <br/><br/> For Hawaii, the Feed-in Tariff program will create a better model for companies to contribute, rather than drain, power from the grid.  In the long term, it will encourage environmental benefits and create lasting economic changes that will make Hawaii a more affordable place to live. <br/><br/> The Feed-in Tariff program has been a long time in coming, and now that we have it in place, it’s an opportunity that we should seize upon—for our financial security and for the future of Hawaii. 

In Hawaii, one organization regulates all of our utilities. The Hawaii Public Utilities Commission, or PUC, operates as a tribunal with semi-judicial powers and oversees public service companies which deal with energy, petroleum, telecommunications, transportation, and water. <br/><br/> According to the PUC’s website, which can be found at http://puc.hawaii.gov, the Commission regulates both franchised and certificated public service companies operating in Hawaii. The PUC can prescribe rates, tariffs, charges and fees, and determines the allowable rate of earnings in establishing rates. Additionally the PUC issues guidelines for the general management of utility companies and acts on requests for the acquisition, sale, disposition, or other exchange of utility properties—including mergers and acquisitions.<br/><br/> The Hawaii Public Utilities Commission has three commissioners. As of December 2010, these are Chairman Carlito P. Caliboso, John E. Cole, and Leslie H. Kondo. The commission employs 48 additional staff members. Currently PUC regulates Hawaiian Electric Company, Hawaiian Telcom, Kauai Island Utility Cooperative, Maui Electric Company, The Gas Company, and Hawaii Electric Light Company. <br/><br/> The PUC is funded as a public service through the Department of Budget and Finance (http://hawaii.gov/budget/). <br/><br/> This description might sound technical to some people, and certainly very sterile to most. Many might ask what the PUC really means for ordinary Hawaiians.<br/><br/> Well, one of the reasons that the Hawaii PUC and other Public Utilities Commissions throughout the United States exist is to provide some form of regulation for utilities in the absence of competition. That is to say, in sectors where natural monopolies arise—such as energy and telecommunication—the PUC provides a counterbalance to potential abuses. The PUC can regulate rates. This means that if a particular utility company is making a large profit margin because of increased rates, the PUC can act to somewhat control the rate hikes. <br/><br/> One of the PUC’s stated missions is also to “promote and encourage the use of alternative, renewable, and/or clean energy resources.” This is a particularly important mission for Hawaiians as we work our way toward energy independence. To that end, recently the PUC approved the “feed-in tariff.” This new rate system has been a goal of renewable energy activists for a long time, and with the action of the PUC, it’s become a reality. The new system sets price guarantees for electricity generated from solar and other renewables and requires HECO to pay market prices for renewable energy fed into the electric grid at locked-in rates set by the PUC. It is hoped that this will help to encourage development of renewable infrastructure in Hawaii. <br/><br/> The commissioners on the Hawaii Public Utility Commission see the body as working on behalf of the people. In a recent interview, Public Utilities Commissioner John Cole says that the purpose of the PUC is to “protect the public interest and promote good energy policy…to try to make things affordable for consumers and move things forward like we need to do for the future.” 

Pacific Business News (PBN) wrote an article the other week on how condominiums are slow to join Hawaii’s move to solar.<br/><br/> The state Legislature passed two laws (one of which we recently wrote about) this year making it easier for condos to go solar.  The first bars an association from making the homeowner responsible for damages and putting a lien on the property pending restitution.  The second makes it possible for condo boards to agree to solar energy for common areas of building without requiring the consent of every condo owner.<br/><br/> These legislations have helped, especially one owner of a condominium in the Mokuleia Beach Colony on Oahu’s North Shore, who wanted to install a solar hot-water heater in her unit and got into a two-year dispute with the complex’s management company.<br/><br/> After the laws passed, she resubmitted her request and now has solar hot-water and is thinking about installing photovoltaic panels as well.<br/><br/> But as the article points out, “the legislation seems to have had a negligible effect on the overall condo solar market, which comprises about one-fourth of housing units on Oahu and statewide.”  One of the issues is cost.  <br/><br/> Federal and state tax credits can reduce the cost of a system by 65 percent.  But individual condo units do not qualify for the federal tax incentives.<br/><br/> The article goes on to say that “Condo boards can decide to put a solar system in the common areas, but such space is generally minimal.  And, because most boards are non-profits, they also cannot qualify for state or federal tax credits.”<br/><br/> There is a small glimmer of hope as the recently passed feed-in tariff (FIT) will allow condo owners to sell excess energy back to the utility company at a fixed price for 20 years…<br/><br/> Still, the feed-in tariff alone is not enough for solar to reach a tipping point with condominiums.<br/><br/> We want to ask you: What do you think needs to be done to help condominium owners join Hawaii’s move to solar?<br/><br/> Please join the conversation on our Facebook page and leave us a comment.  We’d love to hear what you have to say.<br/><br/>http://www.facebook.com/sunetricsolar

APRIL 2011 UPDATE: HECO offers a ‘one-time opportunity’ for residential customers to switch to FIT, but it might not be a good fit after all. Read more.<br/><br/>Back in October, we announced that State regulators approved a transformative initiative called, “feed-in tariff,” which will enable parties generating up to 500 kW of renewable electricity to sell back to HECO’s utilities on Oahu, Maui and the Big Island.<br/><br/> Instead of requiring renewable energy developers to go through extensive negotiations with HECO to be able to sell electricity to the utility, the feed-in tariff (FIT), will use a standard contract for pricing, terms and conditions during the process.<br/><br/> HECO, MECO, and HELCO have begun accepting applications for Hawaii’s feed-in tariff since November 24, 2010.<br/><br/> Interested parties with small-scale renewable energy systems that qualify as Tier 1 and Tier 2 projects can apply online at www.hecofitio.com. <br/><br/> Tier 1 projects include systems on all islands that produce between 0 and 20 kW of power. 

<br/><br/> Tier 2 projects include:<br/>

• solar PV systems greater than 20 kW and up to 500 kW on Oahu, up to 250 kW on Maui and Big Island, and up to 100 kW on Lanai and Molokai
• concentrated solar power systems greater than 20 kW and up to 500 kW on Oahu, Maui and Big Island or up to 100 kW on Lanai and Molokai
• inline hydro-power systems up to 100 kW on all islands
• onshore wind systems up to 100kW on all islands

Please note that there is a difference between the feed-in tariff and net metering, whose approval in Hawaii we wrote about in October. While net metering allows customers primarily to offset their load with power they generate on their own, the feed-in tariff system allows customers to literally feed in to the grid and sell the power they produce.<br/><br/> The feed-in tariff encourages the development of clean energy in Hawaii, and will help to create new jobs and reduce Hawaii’s dependence on foreign oil.<br/><br/> For more information please click here.