Hawaii is leading the way in renewable energy, with the Navy and the Hawaii National Marine Renewable Energy Center (HNMREC) working to improve the viability of wave energy as an alternative. In response to this, the State of Hawaii has set a goal that by 2045, 100 percent of the electricity sold by utilities must come from renewable energy sources. This could save taxpayers tens of millions of dollars a year, and even more savings could be generated as more renewable energy projects come online. If the pilot project is successful in changing energy use behavior, Hawaii will reduce its dependence on fossil fuels, reduce greenhouse gas emissions, make its power grids more reliable and resilient, and ultimately reduce costs for all customers.
Honolulu residents in Hawaii are expected to benefit from reduced utility costs and an increase in renewable energy after the state changed the way Hawaiian Electric makes money. Griffin explained that the programs did not generate financial benefits before, but now Hawaiian Electric will have financial incentives to provide exemplary, high-quality service. Hawaiian Electric's models show that while energy rates may increase in the short term during the transition to clean energy, they will be lower and less volatile than if the company continued to rely on fossil fuels for power generation. This document outlines the organization's strategic direction and long-term vision to fulfill its mission to empower families and businesses on the islands to make smarter energy choices that reduce energy consumption, save money, and achieve a 100% clean energy future.
Excess electricity can be used to electrify sectors of the transportation sector and power a new fleet of electric vehicles. The aging of the grid and electrical infrastructure also poses a challenge by diminishing the potential savings that can be obtained from energy efficiency programs. Access to tax credits and refunds helps residential taxpayers make cost-effective energy decisions that result in lower electricity bills and a reduction in total energy consumption. Hawaii has created several incentives for consumers to install renewable energy systems and energy efficient appliances, such as the solar and wind energy tax credit, the residential energy efficiency tax credit, and the residential energy efficiency reimbursement program.
The plan foresees that the transition to renewable energy could also ease the energy burden of customers with low or moderate incomes, depending on the percentage of income that low-income households spend on average on annual energy bills. Hawaiian Electric tends to increase energy production during this period, mainly through the use of expensive fossil-fueled generators. No other state is as dependent on oil products as Hawaii, and only 11% of the state's energy comes from renewable sources, officials said. Hawaii is taking steps towards reducing electricity costs through Hawaiian Electric's renewable energy program.
This program has been designed to provide financial rewards for exemplary service quality while transitioning away from fossil fuels for power generation. Tax credits and refunds are available for residential taxpayers who make cost-effective decisions that result in lower electricity bills. Additionally, excess electricity can be used to electrify sectors of transportation and power electric vehicles. With this program, Hawaii is aiming to reduce its dependence on fossil fuels, reduce greenhouse gas emissions, make its power grids more reliable and resilient, and ultimately reduce costs for all customers.