Scheduled Dispatch Program
Frequently Asked Questions

ELIGIBILITY and BASIC INFO

Q. How do I know if I am eligible for this program?

A. Scheduled Dispatch Program (“SDP”) participation is available to new and existing customers who own and operate a battery storage system charged from the on-site solar generation under the Hawaiian Electric’s Net Energy Metering (NEM), Customer Self-Supply (CSS), Customer Grid-Supply (CGS), Customer Grid-Supply Plus (CGS+), Smart Export (SE), or Standard Interconnection Agreement (SIA) programs.

Q. Can I just add a battery to my existing PV system to participate?

A. Yes. Customers with an existing executed interconnection agreement may add an eligible battery system to participate.

Q. Can I just add more PV to my existing system to participate?

A. No. To be eligible, the system must include a new eligible battery system to participate.

Q. Can I add more PV to my existing system if I also install an eligible battery system?

A. Yes. Customers with an existing executed interconnection agreement may add up to 5 kW (AC) of new PV generation capacity in coordination with their battery installation by submitting an amendment to their existing interconnection agreement.

Q. Can I get the incentive payment just for having a battery used for emergency backup only?

A. No. The program incentive is not just for having a battery. The program incentive is for a battery to perform a daily scheduled discharge service during 2-hour period defined by Hawaiian Electric.

Q. Is my existing battery eligible for this program incentive?

A. No. The SDP is only for new battery systems installations.

Q. How do I know that my battery system has the necessary capabilities for this program?

A. All KumuKit™ Powerblocks™ systems already include the capabilities and controls for this program. Be aware that battery systems from other manufacturers may not be eligible.

Q. Would my new battery and PV installed under this program also be eligible for Federal and State tax incentives?

A. Yes. Please consult with your tax adviser to see how these tax incentives can befit you.

Q. What islands is this program available on?

A. Oahu only.

Q. What if I already signed up for, or planning to sign up for, another battery program.

A. Participation in SDP does not inhibit you from fulfilling performance commitments of other demand response (“DR”) programs if dual participation is feasible.

ENROLLMENT

Q. When does the program start?

A. SDP will begin enrollment on July 1, 2021 and enrollment will be available until total enrolled SDP capacity reaches 50 megawatts (“MW”) or until June 20, 2023, whichever comes first, unless otherwise ordered by the Hawaii Public Utility Commission.

Q. When are the enrollment applications expected to be available?

A. July 19th 2021.

Q. How do I sign up for the program?

A. Program participation starts by completing a Scheduled Dispatch Program Agreement provided by Hawaiian Electric. Please contact us for assistance.

Q. How do I lock in my incentive rate?

A. The program application submission must include proof that the customer has submitted a building permit to lock in your incentive amount that is determine once processed and approved. At this time, it is still unclear on how long the incentive rate can be locked in for.

Q. How long am I committed to the program?

A. Enrollment in SDP is a ten-year commitment comprised of an initial phase ending for all participants on December 31, 2023 and a final phase commencing on January 1, 2024 and continuing for the remainder of the customer’s ten-year commitment. During the final phase of their ten-year commitment, each customer will have the option to (a) continue operating their battery system under the SDP or (b) transition to an alternative dispatch program upon meeting the applicable eligibility requirements for such alternative program.

Q. When is my program commitment start date?

A. For purposes of initiating the ten-year commitment under this program, the enrollment start date occurs upon the commencement of the discharge of committed capacity for the dispatch period in accordance with the program rules.

Q. How do I know that my system is operating properly under the program guidelines?

A. Within 30 days of the enrollment start date, the customer shall provide seven (7) consecutive days of operational performance data in five (5) minute intervals as necessary for Hawaiian Electric to verify the customers's compliance with this program. Hawaiian Electric shall be required to complete such verification within 10 business days of the receipt of such performance data from the customer. This requirement will be performed by Hawaii Energy Connection personnel.

Q. Is there a minimum or maximum battery power (kW) or capacity size (kWh)?

A. No, but it is important to have an appropriate PV generation-to-battery ratio that allows the battery to perform its intended function during the committed 2-hour dispatch window each day. For example, you need to ensure that there is enough onsite PV generation available to fill the committed battery capacity amount each day or you may face audits and or penalties.

Q. How do I set my program kW commitment level?

A. The customer can specify in the SDP Agreement the capacity level (kW) at which they commit to maintain the discharge level from their battery storage system for a duration of two consecutive hours each day (“dispatch period”). The dispatch period will be specified by Hawaiian Electric at the time of enrollment and may be revised with reasonable notice. These requirements will be set at the time of system installation by Hawaii Energy Connection personnel.

Q. How long does it take until I know that my application has been approved?

A. Hawaiian Electric shall complete its SDP amendment review within 30 calendar days of receipt of a customer’s completed SDP Amendment request.

OPERATION

Q. How is my battery system programed to meet the SDP requirements?

A. Energy discharged during the dispatch period from the battery storage system may either serve onsite load or be exported to the grid. The customer shall be required to manage their battery storage system to automatically prioritize battery charging during periods of substantial solar panel insolation in order to most reliably serve the two-hour battery discharge commitment as scheduled by the Company. These requirements will be set at the time of system installation by Hawaii Energy Connection personnel.

Q. What time is my battery going to be scheduled to discharge every day?

A. Hawaiian Electric will designate your particular start and end time at time of application approval. Customers will be staggered into different time windows designed to “soft ramp” up and down the fleet of battery systems. The expected times for the daily 2-hour dispatch will be somewhere between 5pm - 9pm.

Q. During a grid outage there would be no “scheduled dispatch” back to HECO…correct?

A. Correct. During a grid outage, the homeowner can access any and all stored energy for home loads emergency backup purposes.

Q. Can I add additional battery capacity above the amount committed to the program and reserve it for emergency backup?

A. Yes. Any additional battery capacity (kWh) above the program committed amount can be reserved by the customer and used as emergency backup reserves.

Q. Is there a verification process to demonstrate that the system is operating properly?

A. Yes. Within 30 days of the enrollment start date, the customer shall provide seven (7) consecutive days of operational performance data in five (5) minute intervals, as necessary for the Company to verify the customer's compliance. This requirement will be performed by Hawaii Energy Connection personal.

COMPENSATION

Q. How do I get compensated for enrolling into the SPD?

A. Participation in the SDP is compensated by a one-time incentive payment based on the customer’s committed kW capacity of a battery system for the dispatch period in accordance with the program rules. The incentive payment is determined as of the SDP Amendment approval date pursuant to the table below:

First Tier Customers
(First 15 MW’s of Enrollment)
$850 per kW of
Committed Capacity
Second Tier Customers
(Next 15 MW’s of Enrollment
$750 per kW of
Committed Capacity
Third Tier Customers
(Next 20 MW’s of Enrollment)
$500 per kW of
Committed Capacity

Q. Is the upfront payment considered income and therefore taxable?

A. Yes. The incentive payment is considered income by the IRS, and as such, Hawaiian Electric will provide SDP participants with 1099 forms and submit this income information to the IRS.

To prepare the 1099 forms and submit participant income information to the IRS, the participants must provide their TIN (SSN) to Hawaiian Electric. This data will be transferred via secure file transfer, and data will be handled as specified in the SDP agreement.

Q. Does the upfront incentive payment affect the tax credits of the system I purchased?

A. No. The upfront incentive payment does not affect the taxable basis of the system purchase.

Q. Is the upfront payment a rebate off the cost of my battery?

A. No. The upfront payment is not a rebate on the system purchase.

A. Who received the incentive payment?

Q. The payment will be processed and sent directly to the customer after the system has been installed and verified.

Q. When can I expect to receive the up from incentive payment?

A. The Incentive Payment will be paid in full within 30 days of the date on which discharge of the committed capacity for the discharge period is demonstrated in compliance with this program. Payments shall be made directly to the owner of the battery storage system as identified in the SDR Agreement.

If the customer does not operationalize its conditionally approved battery storage system by December 31, 2023, the Company will void the conditional approval to install and therefore will not owe the customer any incentive payment.

FAILURE TO PERFORM

Q. What happens if my battery system if found to be not performing as expected?

A. If Hawaiian Electric identifies concerns or issues relating to the battery storage system’s performance, including, without limitation, potential non-compliance with this program pertaining to the discharge of committed capacity for the discharge period, Hawaiian Electric may conduct a performance audit to monitor and document conditions.

Hawaiian Electric shall provide the customer written or digital notice at least seven (7) days in advance of any performance audit. They will then ask for some battery inverter performance data. Please contact us to gather the required information and confirm proper system operation.

If the battery storage system fails to perform in compliance with this program, Hawaiian Electric will provide to the customer a written notice of Failure to Perform, which will include documentation explaining the non-compliance of operation. The customer will have 30 days from the date of such notice of Failure to Perform to cure the non-compliance. Again. please contact us to gather the required information and confirm proper system operation.

If no requests for additional data or concerns are expressed regarding committed capacity or operation of the battery storage system are communicated (in written or digital form) to the customer by Hawaiian Electric, the customer will be deemed verified as operating in compliance with this program.

Q. Are there penalties if my system does not perform the function that I committed to?

A. Yes. If the non-compliance persists beyond the 30-day cure period, the customer (recipient of the one-time Incentive Payment, not the contractor) may be charged up to $100 monthly until either the non-compliance is rectified or Hawaiian Electric has recovered the full prorated incentive payment amount.

TERMINATION

Q. Am I able to terminate the agreement?

A. Yes. Notwithstanding the ten-year commitment under this program, the customer may terminate, or a new account holder may assume, their SDP Agreement with written or digital notice provided 60 days prior to date of termination or assumption.

If termination occurs prior to completion of the ten-year commitment, the customer shall return a prorated portion of the incentive payment received. The prorated portion shall be based on the remaining portion of the ten-year commitment, calculated from the date of termination as a fraction of the customer’s ten-year commitment.

Hawaiian Electric will bill the prorated amount to the customer. The customer may either pay in full or make other arrangements with Hawaiian Electric prior to termination. Hawaiian Electric will not charge interest on a payment if final payment is made within one year of date of termination.