Program that offers cash for opting to add battery storage expands to Maui

Hawaiian Electric has expanded its Battery Bonus program to Maui, offering a onetime cash incentive and monthly bill credits to residential and commercial customers who add energy storage to an existing or new rooftop solar system.

The state Public Utilities Commission approved the expansion of the program to Maui after it launched on Oahu in 2021. The structure of the program on Maui closely follows the Oahu program with a few minor differences — the Maui program is capped at 15 megawatts, although the PUC left open the possibility to increase the cap if additional capacity is needed, Hawaiian Electric said in a news release Thursday.

Hawaiian Electric said that adding distributed battery storage on Maui will help the company improve near-term energy reserve margins in advance of the future retirement of the Kahului Power Plant. Additional battery storage will also help ensure continued reliability of electrical supply if four generating units at the Maalaea Generating Station are retired early due to a limited supply of parts.

Incentive payments for Maui customers are:

● $850 for each kilowatt of battery capacity committed. For example, a 5-kW commitment would yield a $4,250 payment.

● A monthly export credit for Battery Bonus participants who are not part of the company’s Net Energy Metering program.

The fixed monthly bill credit is based on the respective retail rate for exporting energy during a two-hour period of the evening peak. The credit is available for three years.

● A $5-per-kW monthly peak capacity payment for the 10-year duration of Battery Bonus.

● Removal of the size limit of 5 kW per customer for photovoltaic systems, as long as the additional solar is not more than twice the battery size.

The Battery Bonus term is 10 years. Customers who participate must use and/or export electricity stored in the battery at the contracted amount on a two-hour schedule specified by Hawaiian Electric between 6 p.m. and 8:30 p.m. daily, including weekends and holidays, through Dec. 31, 2024. After that date, customers will have the option to transition to the program’s next phase to be defined by the PUC for the rest of the 10-year term.

Homeowners and businesses with an existing solar system enrolled in a customer energy program such as Net Energy Metering, Customer Grid Supply or others will continue to receive full benefits from these programs, Hawaiian Electric said. There is no limit on the size of an individual customer’s battery.

Battery Bonus applications will be accepted from Maui customers through June 30, 2024, or until the cap is reached.

For more information, visit hawaiianelectric.com/batterybonus.