More PV installations on Oahu this year than in past decade combined - Pacific Business News
That's about the payback of a solar water-heating system on Oahu, but in 2010 the state passed a law mandating that solar water heating be included on every new home built in the islands. There are still some solar water heating tax credits, but it's nowhere as big a source of revenue for the solar industry as it used to be. Today they're making mostly wholesale contracts to the homebuilders.
Our neighborhood PV installations are running close to the local electric grid penetration limit of 15%, and people are starting to agitate for higher limits or a better grid voltage control system. Today our neighbors across the street told us that they oversized their system (out of ignorance and contractor's overselling) and are now running their air conditioning 24/7 just to use up their excess KWHr credits.
The state's big debate is limiting the credits for 2013. The legislature stalled out on a change to the state laws, so the local Dept of Taxation took the initiative to set their own limits on the credits. This has [-]embarrassed[/-] spurred the legislature to act before the local PV industry starts taking everyone to court over the process.
The looming issue, however, is that PV prices have dropped enough to boost the PV industry, just as was intended, to the point where even the legislature is noticing the revenue "lost" to tax credits. They're talking about reducing the state tax credit five percentage points per year over the next seven years... until it goes to zero. Even without the subsidies it'll still make sense for some homeowners to go PV.
Spouse and I recently found out that our 2004 net-metering permit was approximately #26. Back then we paid a "runner" $150 to stand in line at the permit office just to take care of the paperwork.
At Oahu's retail electric rate of 30-35 cents/KWHr, with 35% state tax credits and 30% federal tax credits, it doesn't take long to pay back the cost of a net-metered system. For us it was just over five years (used hardware, sweat equity) but for most it's been about a decade. As hardware prices have imploded over the last couple years, that payback is dropping to 6-7 years.It was quite a “hot” year for Hawaii’s solar photovoltaic industry, arguably the fastest-growing sector in the state.
And that may be the understatement of the year when it comes to the blossoming renewable energy arena in Hawaii.
One local PV contractor, who has been tracking the market by tabulating the number of permits, says that there were a total of 9,526 installations across the state from 2001 to 2011.
But, according to Marco Mangelsdorf, president of Big Island-based ProVision Solar Inc., more than 15,000 permits will have been issued by the end of this year for net energy metering systems on Oahu alone.
“[This number] is more than 150 percent of the cumulative total in one year compared to the previous 10-plus years,” he said.
So one would wonder: How is the notoriously slow City and County of Honolulu’s Department of Planning and Permitting churning this through its system?
Just a couple of months ago, it launched a new online system as a way to cut down on the number of people who wait in line each day at the city’s permit center.
The department was overwhelmed by the heavy loads of PV systems, and the applications for them were causing delays for other types of building permits, according to officials there.
In its very first day of the online system, the department said that it issued more than 300 PV permits.
That's about the payback of a solar water-heating system on Oahu, but in 2010 the state passed a law mandating that solar water heating be included on every new home built in the islands. There are still some solar water heating tax credits, but it's nowhere as big a source of revenue for the solar industry as it used to be. Today they're making mostly wholesale contracts to the homebuilders.
Our neighborhood PV installations are running close to the local electric grid penetration limit of 15%, and people are starting to agitate for higher limits or a better grid voltage control system. Today our neighbors across the street told us that they oversized their system (out of ignorance and contractor's overselling) and are now running their air conditioning 24/7 just to use up their excess KWHr credits.
The state's big debate is limiting the credits for 2013. The legislature stalled out on a change to the state laws, so the local Dept of Taxation took the initiative to set their own limits on the credits. This has [-]embarrassed[/-] spurred the legislature to act before the local PV industry starts taking everyone to court over the process.
The looming issue, however, is that PV prices have dropped enough to boost the PV industry, just as was intended, to the point where even the legislature is noticing the revenue "lost" to tax credits. They're talking about reducing the state tax credit five percentage points per year over the next seven years... until it goes to zero. Even without the subsidies it'll still make sense for some homeowners to go PV.
Spouse and I recently found out that our 2004 net-metering permit was approximately #26. Back then we paid a "runner" $150 to stand in line at the permit office just to take care of the paperwork.