Hawaiian Electric Company's (HECO) "Shift and Save" pilot program, designed to incentivize off-peak energy consumption, has been discontinued after failing to meet its objectives. The program, which involved approximately 20,000 customers, aimed to shift electricity usage from evening and overnight hours, when energy is generated by more expensive fossil fuels, to daytime hours when solar energy is abundant and less costly hawaiianelectric.com. This initiative had implications for various businesses and consumers across the islands.
The "Shift and Save" pilot was developed collaboratively by Hawaiian Electric, the state Consumer Advocate, and representatives from the solar industry, and received approval from the Public Utilities Commission (PUC) hawaiianelectric.com. The program offered time-of-use rates, which had the potential to reduce bills and cut greenhouse gas emissions from power generation hawaiianelectric.com. Its primary objective was to encourage customers to alter their energy consumption patterns to align with the availability of solar energy, ultimately contributing to a more sustainable energy grid. The pilot program was a test to see how and whether this program will ultimately apply to all customers in the future, according to Hawaiian Electric.
For Hawaii's business community, the failure of "Shift and Save" raises questions about the effectiveness of demand-side management strategies and the future of energy pricing models. Businesses, particularly those with high energy demands, stood to benefit from reduced electricity costs by adjusting their operations to align with cheaper daytime usage. The program's cancellation could mean a continued reliance on traditional energy pricing structures, potentially affecting the competitiveness of local businesses.
The PUC will use data and feedback from the program to determine how and whether it will ultimately apply to all customers in the future. The decision to end the pilot program underscores the complexities of transitioning to a more sustainable energy system, and impacts Hawaiian Electric's strategy for the future. HECO customers can still enroll in the "Welcome Home Rate" at $0.62 per kWh, according to Hawaii Free Press.
