Facts of the Matter

04/06/08 Penalizing Photovoltaic


Honolulu is the southernmost city in the United States and as such receives the most intense solar energy. We also have the highest electricity rates in the country, if not in the world.

Sunlight is not very dense energy and requires a large area to produce electricity from photovoltaic cells. It is relatively clean but does not have a zero footprint since manufacturing the photovoltaic cells requires energy and materials that require mining and processing.

According to the U.S. Energy Information Administration in November 2007 the statewide average cost of electricity in Hawai'i was 2.7 times higher than the national average.

The state Public Utilities Commission (PUC) has recently raised the limit on the size and amount of photovoltaic and other alternative energy systems that can feed electricity into the grids, allowing their owners to get credit against their electric bills.

The PUC doubled the limit on system sizes to 100 kilowatts of peak generating capacity and doubled the cap on total capacity under net energy metering agreements to one percent of peak system demand for each customer on O'ahu, Maui and the Big Island

With a dozen states in the continental US already allowing generating capacity of ten times that much and several having no limits on how many systems can be tied into a grid, it raises the question of why the local allotment is so small.

Doubling the limit seems generous, but why should there be a limit at all? Public utility commissions exist primarily to protect consumers against excess profits in industries where there is no competition,

Placing restrictions on the amount of energy that can be credited back to the grid instead protects the electric company from competition by penalizing private sources at a time when there is a drive to encourage alternative energy sources.

This just doesn't make sense.

In establishing the Hawaii Clean Energy Initiative, the state seeks to have at least 70 percent of its energy needs supplied by renewable sources by 2030.

The restrictions of the PUC places severe limitations on the ability to achieve these goals. If a private or consumer photovoltaic system produces more energy than can sell back to the grid then it is giving it to the electric company for free.

Alternative technologies are expensive now, but petroleum prices have climbed above $100 per barrel and are not likely to come back down to the glory days of the twentieth century.

Many have envisioned a future where dispersed private and consumer energy generation contributes significant power to the grid in conjunction with publicly regulated companies.

Whether or not carbon dioxide is the cause of global warming, higher levels in the atmosphere and oceans do influence the global ecosystem in ways that are not now and may not ever be fully understood. The little that we do know about our planet suggests that any large increase will have deleterious effects in the long run.

With this in mind I can't help but wonder about the wisdom of placing limits on payback to the grid.

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Richard Brill, Professor of Science at Honolulu Community College (honolulu.hawaii.edu/~rickb), teaches earth and physical science and investigates life and the universe. His column is published on the first and third Sunday of every month. E-mail questions and comments to rickb@hcc.hawaii.edu

" Penalizing Photovoltaic" ©2008 by RCBrill. All rights reserved.