Date: July 3, 2013
Honolulu- Governor Neil Abercrombie signed into law today a measure to encourage renewable energy generation on rental and leased property.
Senate Bill (SB) 19, enacted as Act 261, removes the barriers for landlords and lessors to install renewable energy systems for their tenants and lessees by removing them from the definition of what constitutes a public utility.
“I'm a big supporter of distributed generation - generating electricity where it's used. That's why I introduced SB 19 to get rid of the barriers to allowing renters to also access PV. Renters make up 40% of our population, so it's huge that they'll now be able to lower their electricity bills but without having to pay the upfront cost,” said Senator Mike Gabbard, who chairs the Senate Committee on Energy and the Environment.
SB 19 will allow landlords and lessors to install renewable energy systems on their property and then sell that electricity to their tenants or lessees on the premises. The bill requires that the electricity rate charged must be lower than that charged by the utility and be included as a provision in the lease.
Gabbard continued, "These energy savings will greatly benefit our renters, including those in Kalaeloa who are faced with a steep electricity hike recently announced by the Navy. It will also open up a great investment opportunity for places like Ala Moana Center that could put up a big PV system and then sell the electricity to the different stores in the mall."
The bill went into effect immediately upon receiving the signature of the Governor today.