Frequently Asked Questions

What are the acceptable forms needed to demonstrate compliance of the Tier 2 Building Permit Application Pre-Qualification?

The Building Permit Application issued by the City & County of Honolulu, Department of Planning and Permitting (DPP) is identified by a project specific number issued to an applicant in the following format: A2011-12-3456 (“BPA Number”). Any one of the following 4 forms, with the required information, are accepted forms of demonstrating compliance. Examples, with the required information (highlighted in yellow), are shown by clicking on the links below:

A copy of the Building Permit Application: the Building Permit Number and the Date Created must be visible. The date created must be on or before the FIT application date.

Screen shot of the DPP Building Permit: the Application Number and the Created Date must be visible. The created date must be on or before the FIT application date.

Screen shot of the DPP Internet Building Permit Application: the Building Permit Application No. and the Completed Date must be visible. The completed date must be on or before the FIT application date.

A copy of the Building Permit: the Date Issued must be on or before the FIT Application Date.

How is this different from NEM?

In NEM, the customer connects to the utility grid allowing it to export surplus electricity into the grid. The customer will receive credits at full retail value which can be used to offset electricity purchases over a 12 month period. In FIT, the customer is paid for the surplus energy at a rate approved by the commission for the length of the Agreement.

In NEM, there are no fees to apply for the program. In FIT, there is an application fee and additional fees depending on the size of the project.

The decision to go with the either NEM or FIT is a decision that each customer must make based on their system size, surplus generated and energy consumed, as well as any unique circumstances to their system.

Which should I choose for my home PV system? NEM or FIT?

Customers who wish to generate renewable power can choose between two programs.

Net Energy Metering (NEM) allows customers to connect their renewable generator (PV system) to the utility grid, allowing it to export surplus electricity into the grid, and to receive credits at full retail value which can be used to offset electricity purchases over a 12-month period.

Feed-in Tariff (FIT) allows customers to sell renewable power to the Company. Pre-established FIT energy payment rates and standardized FIT contract terms simplify the process for selling power.

NEM and FIT are separate programs. The terms are different for each program. The table below summarizes the main differences between NEM and FIT.

	NEM	FIT
Am I paid for the excess energy my system produces?	You will not be paid for excess energy produced. You will accumulate credits for the excess energy to offset energy you use when your system is not producing energy (for example at night). At the end of 12-months unused credits are forfeited.	You will receive monthly payments for any energy fed into the grid. The payment rate for Tier 1 (up to 20kW) PV systems is 21.8¢ per kWh. For energy you use from our grid you will be billed at the regular retail rate (about 25¢ per kWh for a residential customer on Oahu).
Is there a monthly fee?	There is no service fee for participating in the NEM program however you will need to pay other fees.	FIT customers will be charged $25 per month. The fee is charged regardless of how much energy you sell to us.
Are the payments taxable?	NEM credits are not taxed.	FIT payments are considered income. The Company must report the payments annually to the IRS. You will receive a 1099 form for the FIT payments after the end of the year. Please consult with your tax professional if you have questions.
Do I need insurance for my system?	Insurance is not required for a system that is 10kw or less.	For a system up to 20kW you must have a general liability policy covering bodily injury and property damage combines single limit of at least $500,000. The Company must be named as an additional insured on the policy.

Click here for an illustrative example.

Why is an application fee required?

The fee helps to insure capacity is reserved only for serious applicants. It is meant to discourage applications that may be frivolous and lock up capacity otherwise available to serious participants.

What method of payment does HECO accept?

HECO accepts check and money order payments only. No credit cards or cash.

Who do I make payments payable to?

Payments should be made payable to Hawaiian Electric Company.

Where do I send payments and documents?

Mail to:

Hawaiian Electric Company
Energy Procurement CP21-XB

PO Box 2750

Honolulu, HI 96840

Will the Kilowatt-hour payment price change?

The FIT rates will be constant over the FIT term. The Commission may make adjustments to the FIT rates during the periodic reexamination. Between periodic reexaminations, parties may petition the adjustments in FIT rates under very limited circumstances.

Can the contract be transferred if I sell my house or building?

Yes, if you sell the building where the system is installed, the contract does transfer to the new owner