Maui Business Report

Renewable Projects Light Up Economy

Solar farms lead the way for utility-scale projects

Maui is continuing its march toward renewable energy, with two new utility-scale solar energy projects coming on-line this spring.

“We’ve made quite a bit of progress,” says Maui Electric Co. President Sharon Suzuki. Maui derived 14 percent of its power from renewable sources in 2008, she says. “As of last year, we were at 34 percent.”

That growth will get another boost from two 2.87 megawatt solar projects, located in Lahaina and Kihei, which were expected to become operational in March and April. They’re the first utility-scale solar projects for Maui, says Bob Johnston, president of Hawaii Pacific Solar, which is developing the projects.

More large-scale projects may follow. Hawaiian Electric Cos., parent company of MECO, announced in February that it was launching a competitive bid process to search for more grid-scale renewable energy projects on Maui, as well as Oahu and Hawaii Island. It marks the first time the company has sought such a large amount of variable renewable resources to be developed at one time in Hawaii.

A residential solar system by Hawaii Pacific Solar. In addition to residential projects, the company was completing work on two utility-scale solar projects this spring. | Photo: Courtesy of Hawaii Pacific Solar

It’s the first stage of a proposed two-stage process aimed at adding renewable resources to the state through 2022, allowing developers to take advantage of federal investment tax credits.

MECO also recently contracted with Molokai New Energy Partners to purchase from a grid-scale solar and battery storage system on the Friendly Isle. The project is planned for development on Molokai Ranch and is anticipated to be operational by the end of next year.

“We continue to look to add both grid-scale projects as well as looking at ways for customers to participate in this renewable transition,” Suzuki says.

Securing long-term power purchase agreements with local utilities is one major challenge to getting financing for such large-scale projects, and the issue needs to be addressed if more are to be built in the future, Johnston says. “I think doing utility-scale is really hard,” he says.

A solar system at Whaler’s Village by Hawaii Pacific Solar. Commercial solar projects are expected to increase before federal tax credits taper off. | Photo: Courtesy of Hawaii Pacific Solar

On the smaller scale, there continues to be demand for businesses looking to install their own solar systems, but that could wane as federal tax credits taper off, he adds. “I think there’s a real urgency to get these projects done over the next two to three years while the federal tax credits are as much as they are,” he says.

Maui Brewing Co is one local business heavily investing in solar energy. The company installed a solar array and powerpacks at its Kihei brewery, and uses a solar hot-water system for brewing and equipment sterilization. “By the end of this year or the start of 2019, we’ll be grid-independent with our electrical energy,” says Maui Brewing founder Garrett Marrero, who with his wife and partner, Melanie Oxley, received the U.S. Small Business Administration’s award for Small Business Person of the Year in 2017. “When you look at the numbers from that, as well as the savings on propane energy, it adds substantially to the bottom line.”