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Net Energy Metering

S ince 2001, Hawaiian Electric Company, Inc. (HECO) has offered Net Energy Metering (NEM) to its residential and commercial custom- ers in order to encourage the use of eligible renewable sources like solar (photovoltaic), wind, biomass, or hydro-electric power for electrical generation. Under NEM, qualified

customers may use the energy produced from these renewable energy sources to offset all or part of their electricity purchases from HECO in two unique ways:

1. Energy produced from these renew- able energy sources is directly fed to appliances and other electronic equipments in a home or business to offset electricity purchased from HECO.

2 When a customer generates more than what is consumed, excess energy produced may be exported back to HECO for credit at full retail value which can be used to offset electricity purchases over a 12-month period.

What is NEM? NEM basically allows the export of any excess electricity (kilowatt-hours) produced from the customer’s renewable energy source back to the HECO grid. NEM custom- ers are billed the Net Energy which is determined by subtracting the excess energy exported back to HECO from the total energy supplied by HECO.

HECO has seen a sharp growth in new photovoltaic (PV) systems on Oahu. In 2007, the number of PV systems installed on Oahu has already more than doubled the number installed in all of the previous six years. The higher cost of oil, the availability of tax incentives for new PV systems, and the public concerns for the environ- ment have fueled customers’ interest in PV systems on all of the islands. HECO is supportive of PV technologies and other renewable energy sources that could be used to generate electricity and reduce Hawai’i’s dependence on imported oil.

Energy Supplied by HECO

  • ––

    Excess Energy Exported back to HECO Net Energy Billed to Customer (kWh)

In a given month, if more electricity is produced than consumed, the NEM customer will only be charged for non- energy related components of the electric service it has received, unused credits for the month, are carried for- ward to offset future monthly bills over a 12-month period.

systems with HECO by executing a Net Energy Metering or Standard Inter- connection agreement to help ensure the public’s safety and the safety of HECO’s workers.

For safety reasons, customers installing PV systems must notify HECO prior to energizing and connecting their PV systems to HECO’s utility system. HECO needs to be aware of where


According to the Hawai’i state law (Hawai’i Revised Statues (HRS) Section 269-101 – 269-111), all residential and commercial utility customers, who own and operate eligible renewable resources for electrical generation; such as PV systems, must register their


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