DER Programs

Program Track Overview

The Commission identified two broad objectives for the Program Track in Order No. 37066: 1) design and implement long-term DER programs that include both an export-only program and a more advanced program featuring compensation for energy exports and grid services, and 2) develop a transition plan for interim DER programs to promote market stability and minimize customer confusion.

In Phase 1 of the Program Track, through a series of technical conferences and monthly meetings, the Parties prepared several rounds of program proposals for the two long-term DER programs. The Commission determined in the Phase 1 Order, No. 38196, that the Smart DER Tariff and Bring-Your-Own-Device (“BYOD”) Tariff would be the two long-term DER programs. In Phase 2, the Parties prepared additional proposals for these two tariffs, and the Commission established the framework for the tariffs in the Phase 2 Order, No. 38681. In Phase 3 via Decision and Order No. 40418, the Commission finalized the Smart DER Tariff and BYOD Tariff’s structure, including initial export rates and incentives that shall be updated every three years. A summary of this order is available here. The Smart DER Tariff and BYOD Tariff Level 1 Rider launched for customer enrollment on April 1, 2024, and the BYOD Tariff Level 2 Rider and Level 3 Rider will launch for customer enrollment at a later date.

Separate from these three phases, in Order No. 37816 the Commission approved an emergency grid services program, the Scheduled Dispatch Program (“SDP”; also known as the Emergency Demand Response Program and the Battery Bonus Program), for Oahu to address potential capacity shortfalls beginning in 2022. The Commission also approved amendments to SDP in Order No. 38239 and an expansion of SDP to Maui in Order No. 38393 to address similar possible capacity shortfalls. SDP Oahu closed for enrollment in December 2023, and SDP Maui will close for enrollment in June 2024.

The Parties continue to collaborate in the Program Track to support implementation and monitoring of the new programs. The Commission and the Parties are also working together to establish new reporting requirements for Hawaiian Electric’s DER programs to improve transparency and to better inform decision-making.

Smart DER Tariff

The Smart DER Tariff launched April 1, 2024 with two available riders for customers, the Non-Export Rider and the Export Rider. The Non-Export Rider offers a streamlined interconnection process for customers who would like to self-consume the energy generated from their DERs without exporting energy to the grid. The Export Rider offers time-varying export compensation rates for customers who would like to export some or all of the energy generated from their DERs. The Commission determined exact export compensation rates, along with other enrollment requirements and the framework for updating the tariff, in Decision and Order No. 40418.

BYOD Tariff

The BYOD Tariff is an advanced tariff that launched April 1, 2024 offering customers enrolled on a basic DER tariff, such as the Smart DER Tariff, an opportunity to receive additional compensation in return for providing grid services to Hawaiian Electric, initially for customers with batteries. There are three levels for the BYOD Tariff: Level 1, Flexible User Dispatch; Level 2, Utility Dispatch; and Level 3, System Grid Services. Customer enrollment on one of these levels will determine the grid services the customer must provide and the compensation Hawaiian Electric will provide in return. Level 1 launched for enrollment on April 1, 2024 and Levels 2 and 3 will launch at a later date. The Commission determined these incentives, along with other enrollment requirements and the framework for updating the tariff, in Decision and Order No. 40418.

Key Orders and Filings

Date Order No. and Link Summary
March 19, 2024 Order No. 40670 The Commission approved Hawaiian Electric’s proposed final Smart DER and BYOD Tariffs, subject to certain modifications, for the launch of these programs on April 1st.
March 18, 2024 Order No. 40667 The Commission granted the same recovery approach approved in Order No. 40638 for application to the DPS Programs on Molokai and Lanai.
February 29, 2024 Order No. 40638 The Commission partially granted Hawaiian Electric’s request to recover costs associated with incentives and evaluation activities for the DPS Programs through the DSM Surcharge, excluding costs associated with dispatch agents and incremental labor costs. This order did not apply to Molokai and Lanai, pending additional information from Hawaiian Electric.
February 26, 2024 Order No. 40626 The Commission denied Hawaiian Electric’s motion to delay the launch of the programs until June, moving the launch of the Smart DER and BYOD Programs to April 1, 2024 to accommodate additional time necessary for Hawaiian Electric to finalize tariffs and revise marketing, education, and outreach materials.
February 13, 2024 Order No. 40600 The Commission instructed Hawaiian Electric to file Final Smart DER and BYOD Tariffs, subject to additional revisions identified by the Commission here and via Order No. 40582.
February 5, 2024 Order No. 40582 The Commission addressed the DER Parties’ motion for reconsideration, making additional modifications to the Smart DER and BYOD Tariffs. BYOD Levels 2 and 3 are temporarily suspended, and the Commission shall host a technical conference on certain issues within 60 days.
December 4, 2023 Decision and Order No. 40418 The Commission finalized the new DPS Programs, the Smart DER Tariff and the BYOD Tariff, which will launch for customer enrollment on March 1, 2024. A summary of the Order is available here.
September 22, 2023 Order No. 40278 The Commission approved Hawaiian Electric’s request to postpone the start date of the Smart DER and BYOD Tariffs to March 1, 2024, following the tragic Maui wildfires and the ongoing response efforts by Hawaiian Electric and others.
July 25, 2023 Order No. 40117 The Commission directed the parties to submit sample report templates for the proposed DER reporting requirements framework update by mid-December.
July 17, 2023 DPS Phase 3 Modeling Results Hawaiian Electric submitted the final modeling results associated with DPS Phase 3 efforts to determine Smart DER Tariff export rates and BYOD Tariff incentives.
July 7, 2023 Order No. 40069 The Commission established the launch date of the Smart DER and BYOD Tariffs as November 1, 2023, following the remaining development of the record and decision-making. The Scheduled Dispatch Program (SDP) for Oahu will close for new enrollment on October 31, 2023.
June 6, 2023 Order No. 39349 The Commission presented the parties with a proposal to modify reporting requirements for Hawaiian Electric’s DER programs, asking for the parties to provide comments by June 27, 2023.
June 1, 2023 Order No. 39335 The Commission provided additional modeling guidance for Hawaiian Electric’s Distributed Energy Resources Program Structure (DPS) Phase 3 modeling efforts and modified the procedural schedule for the remainder of DPS Phase 3, providing additional time.
February 27, 2022 Order No. 38962 The Commission approved revisions to the SDP requested by Hawaiian Electric and the DER Parties to encourage customer enrollment in the final year of program availability.
December 22, 2022 Order No. 38787 The Commission amended the DPS Phase 3 procedural schedule following discussion with the parties at the DPS Phase 3 Technical Conference, incorporating additional time and events to support the Parties’ collaborative modeling efforts and program implementation.
October 31, 2022 Order No. 38681 The Phase 2 Program Track Order established the framework for the Smart DER Tariff, including the export compensation methodology and requirements for advanced metering and TOU enrollment, and the BYOD Tariff, including available grid services, eligible customers, the incentive rate methodology, and requirements for advanced metering and TOU enrollment. The Commission also determined transition plans for existing DER and SDP customers, rejected the establishment of an interconnection application fee, and opened Phase 3 of the Program Track. In Phase 3, the Companies provide modeling to determine the final export rate for the Smart DER Tariff and incentive rate for the BYOD Tariff. Following this modeling process and review by the Parties, the Smart DER Tariff and BYOD Tariff are expected to launch in 2023.
May 20, 2022 Order No. 38393 The Commission approved an expansion of SDP to Maui to address possible anticipated capacity shortfalls. The terms of the program on Maui are nearly identical to those of the program on Oahu, except that the total capacity limit is 15 megawatts, with enrollment to customers open through June 2024.
February 25, 2022 Order No. 38239 The Commission approved amendments to the SDP to increase customer compensation (via additional monthly incentives) and update customer performance requirements.
January 25, 2022 Order No. 38196 The Phase 1 Program Track Order found that the Smart DER Tariff, which determines how a new DER customer may connect to the grid and how their energy exports are compensated on a time-varying basis, will be the long-term basic DER program. The BYOD Tariff, which compensates customers for grid services they supply to the Companies in addition to the terms of the customer’s underlying DER tariff, will be the long-term advanced DER program.
June 8, 2021 Order No. 37816 The Commission established the Scheduled Dispatch Program (SDP), which provides upfront and monthly incentives to customers for installing new battery storage paired with solar that dispatches daily during the grid’s peak hours for a commitment period of 10 years. The initial capacity was 50 megawatts for Oahu, with enrollment to customers open through June 2023 to address anticipated capacity shortfalls.

See related Commission pages:

Updated 4/2024