Recently, Hawaii adopted a feed-in tariff program (FIT) to support the use of solar power in the state. Already a leader in solar, Hawaii is on the progressive edge in the U.S. with the adoption of this program.
A feed-in tariff is, essentially, where your utility company has to pay you cash for the amount of energy your solar system produces above the amount you consume
Solar electric and solar hot water with an ocean view in this Waikoloa Village home
Under Hawaiiâ€™s net-metering rules, homeowners and businesses must be credited monthly at the retail rate for any excess electricity generated by their solar panels.
This means that if you pay 25 cent per kWh, the utility is required to issue monthly credit for any excess solar electricity at 25 cents, but at the end of the 12-month billing cycle, any excess credit is automatically granted (without compensation) to the utility, like HECO, MECO, or HELCO.
Solar electric panels
The feed-in tariff program rectifies this issue by ensuring that owners of solar photovoltaic (PV) systems receive compensation for any over-production on an annual basis. Also, unlike net-metering, which provides credit on ensuing electric bills, a feed-in tariffÂ provides a cash payment.
A home like the one pictured above (MLS# 238548)Â listed at $449,000, which has solar electric and solar hot water, will be able to take advantage of this program for years to come.