Electricity provider, Hawaiian Electric, and nonprofit organization, Hoahu Energy Cooperative Molokai, are moving ahead with the state's first two community-owned and -designed solar-plus-battery projects, which could meet over 20% of Molokai's energy needs, the companies announced last week.
The projects, Palaau Solar and Kualapuu Solar, will offer the shared solar program, also known as community-based renewable energy, to help lower the electric bills of an estimated 1,500 homes on the island that are unable to install privately owned rooftop solar.
Palaau Solar could provide up to 2.2 MW of solar energy along with a 10.1 MWh battery and will be located on property owned by Hawaiian Electric next to the company's Palaau Baseyard. Kualapuu Solar could provide up to 0.250 MW of energy with a 1 MWh battery, and will be located at the Kualapuu Park and Community Center, mounted on carport structures over the existing parking lot, according to the announcement issued Jan. 12.
The development partners are tasked with facilitating the fundraising and financing for the project. There has been $3 million in congressionally directed spending earmarked for the project. The Hawaii Green Infrastructure Authority also has provided a letter of intent to lend to the project from the Green Energy Market Securitization Bond, a financing mechanism that supports the state’s renewable energy goals. Other potential sources, including investment fund Inclusive Prosperity Capital, also have provided letters of intent, according to a spokesperson for Hoahu Energy Cooperative Molokai.
"They will be able to present a full overview cost picture when the project is farther along," the spokesperson told PBN in an email.
“These two projects are the right thing to do for Hawaii and our planet,” Hoahu President Todd Yamashita said in a statement. “It will provide access to renewables for those who need it most. Molokai renters are left out and can’t install solar panels. Community solar says, ‘Let us build a solar farm for you out in the field, and the energy we make and the profit we make will be credited directly on your bill and the bill of other members of the energy cooperative.’”
Once negotiations of the 20-year contracts between Hawaiian Electric and Hoahu are finalized, they will submit two applications for approval by the Public Utilities Commission. Following approval, Molokai customers can subscribe to one of the facilities through Hawaiian Electric's CBRE portal. Once the projects are built and online, subscribers receive credits on their monthly electricity bills based on their participation levels, according to the announcement.
“We are looking forward to working more with Hoahu Energy Cooperative Molokai and their partners to bring these community-based shared solar projects online,” Rebecca Dayhuff Matsushima, vice president of resource procurement for Hawaiian Electric, said in a statement. “The two projects can help our Molokai customers bring down their energy bills and further reduces our carbon footprint in generating power to meet the energy needs of the island.”
