*** UPDATE: AUGUST 15, 2011 ***

PUC OPENS DOCKET ON ON-BILL FINANCING

*** UPDATE: JULY 8, 2011 ***

GOVERNOR ABERCROMBIE SIGNS HB1520 FOR ON-BILL FINANCING INTO LAW

Dear Friends,

The “clean energy” buzz has become louder following a series of unfortunate events: power outages and the HECO strike; political instability in the Middle East; Japan’s tsunami and nuclear calamity. Energy security is a serious concern for Hawai‘i, the most oil- dependent state in the nation.

How are we at risk? The cost of gas, up more than $1 over the past six months, illustrates how much we pay whenever the price of oil spikes. But not just our gasoline: 95% of Hawai‘i’s power comes from imported fossil fuels. And producing all that harmful carbon pollution is not cheap. The price of residential electricity has soared 40% in two years, costing Hawai‘i residents $20 million more each month to keep the lights on.
 
We can choose a new path forward. Switching to clean energy is our obvious choice, and energy efficiency is the first step. Installing energy-efficient solutions in homes—from solar power to energy-saving appliances—can lower energy consumption substantially.  And lower consumption translates into lower bills.

Unfortunately, the upfront cost often puts these choices out of reach. But that’s about to change. Blue Planet Foundation champions a policy called on-bill financing (House Bill 1520), which makes energy efficiency accessible to everyone. It eliminates the upfront cost of efficiency upgrades and enables residents to pay off the purchases directly on their electric bill by applying the energy savings over time. 

What’s the catch? There is no catch. That is the function of energy efficiency: It saves energy, which saves money. Companies that profit from our energy consumption (and oil consumption) naturally oppose HB 1520. As a nonprofit committed to the public’s best interest, Blue Planet recognizes the significant value of this measure—the sole energy proposal that helps residents lower their cost of living.
 
On-bill financing gives residents a choice: Pay less for clean power or more for continued pollution. Hawai‘i can’t afford not to enact this policy.

TEXT HAWAIIPOWER TO 83936 TO VOICE YOUR SUPPORT

* Thank you for raising your voice *

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Show me the money! Can you give a “real-life” example of how on-bill financing works?

The Young family is eager to install solar hot water on the roof of their 3-BR home, but they don't have the money to buy it right now. They also don't have the time or patience to navigate all the various incentives and financing options that are available. With the adoption of on-bill financing, the Youngs will have a simple, straightforward, and hassle-free way to purchase a solar water heater. If they elect to participate, the system is installed with no upfront cost, and they'll pay it off over five years directly on their electricity bill.

Before the Youngs installed their solar system, their typical monthly electric bill was $200 (average Hawaii household bill). The solar water heater immediately cuts their energy costs by 35 percent—$70. So their new monthly energy cost is $130. Added to their bill is a monthly charge of $54 to pay off the solar water heater. The total bill becomes $184, which is $16 lower than it was originally. After five years, the purchase is paid off, and the Youngs will own the system entirely. Plus, their bill will drop to $130!
 
(That means they’ll be saving $16 a month for 5 years ($16 x 60 = $960) and then saving $70 a month for 10 years* ($70 x 120 = $8,400) or longer, for a total of $9,30 saved.)
 
*considering a 15-year warranty

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