Building a Smart Grid
Roadblocks on the Path to Hawaii’s Energy Future
(page 3 of 3)
Kaheawa Wind Farm
• Minimum: As little as 6 mph of wind will turn the long, elegant blades of the Kaheawa turbines.
• Maximum: When the wind reaches 55 mph, the blades feather and each turbine stops spinning.
• RPMs: Regardless of the wind speed, the turbines top out at 21 rpm – slow enough for nene to fly through in formation.
• Best wind: At 23 knots, the optimum wind speed, each turbine produces 1.5 megawatts of electricity.
source: first wind inc.
P.A.C.E.: Supercharging the Solar-Energy Industry
Many homeowners and businesses want solar energy to lower their electric bills but can’t afford the upfront cost – as much as $25,000 for a standard residential installation. But a new form of funding called PACE – property-assessed clean energy – offers a nearly painless solution.
How PACE Works
People who want to purchase clean-energy technology, such as solar water heating or photovoltaic systems, for their homes or businesses will be able to borrow from a special revolving fund established by the state. In return, they agree to pay the money back (plus interest and administrative costs) through an added assessment on their property taxes. In most scenarios, PACE funding will have no effect on the availability of federal or state tax credits.
How It’s Funded
To establish the PACE revolving fund, the state would issue general-obligation bonds. These would be guaranteed by the incremental increase in property taxes. In theory, PACE shouldn’t add any costs to the state budget. It’s even possible that federal grants would pay for the administrative costs of setting up the program and establishing a certification process.
Who Would Be Eligible?
One of the charms about PACE funding is that it’s tied to the house, not the homeowner’s credit. As long as you can afford to keep up with the property taxes, you would be eligible to borrow money for any qualified clean-energy system. What’s more, when you sell your home or business, the obligation to pay goes with the property. That makes sense, because an investment like a PV system adds value to your home, but is worthless to you when you sell.
Will It Happen Here?
The Sierra Club and Blue Planet Foundation are advocating strongly for PACE. It also enjoys broad support in the Legislature and with Gov. Linda Lingle. Legislation introducing the program, HB 2643, has already passed unanimously in the state House, but it still faces challenges in the Senate and in conference. Advocates such as Sen. Kalani English warn that, given the state’s fiscal troubles, it may take more than one session to pass.
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