RELATING TO RENEWABLE ENERGY.

SB2902

THE SENATE

S.B. NO.

2902

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Renewable energy
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
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The legislature finds that solar energy,
along with wind energy, has become the most cost-effective source of
electricity in the world.
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The State has
long capitalized on its abundant sunlight through large-scale solar farms that
supply power to electric utilities and widespread rooftop solar systems that
serve individual households.
�
Hawaii
currently leads the nation in rooftop solar installations per capita, and
continuing advances in technology have made solar energy more accessible and
affordable than ever before.

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The
legislature further finds that portable solar generation devices�commonly
referred to as balcony solar or plug-in solar�offer new opportunities for
families to generate their own electricity.
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These systems are particularly advantageous to residents of apartments
and rental properties.
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Apartment
dwellers can install units on balconies and renters can easily relocate their
systems when they move to a new home.

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Compared
with rooftop solar, portable solar generation devices have significantly lower
upfront costs�generally between $500 and $1,000�and can be installed by
consumers without specialized training.
�

Although these devices produce less electricity than typical rooftop
systems, they can supply enough power to operate common household appliances
such as lights, televisions, computers, and refrigerators.

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Once
installed, a portable solar generation device plugs into a standard household
electrical outlet.
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Electricity generated
by the device is used by appliances connected to the home's other outlets,
while built-in safety features prevent electricity from flowing into the
grid.
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Any surplus electricity generated
is unused and cannot be sold to the electric utility.

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Portable
solar generation devices may also be paired with battery storage, allowing
users to store electricity produced during the day for use at night or at other
times when the sun is not shining.
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Although batteries remain relatively expensive, costs are decreasing,
and combined systems can yield long-term savings on household electricity
expenses.

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The
legislature therefore finds that establishing a clear regulatory framework for
portable solar generation devices will encourage their safe and effective use,
expand access to renewable energy, and advance the State toward its clean
energy goals.

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Accordingly,
the purpose of this Act is to establish a regulatory framework to introduce the
use of portable solar generation devices in the State, beginning within units
in condominiums organized pursuant to chapter 514B, Hawaii Revised Statutes,
subject to certain conditions.

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SECTION
2.
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Chapter 269, Hawaii Revised Statutes,
is amended by adding two new sections to part I to be appropriately designated
and to read as follows:

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"
�269-
�
Portable solar generation devices;
requirements.
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(a)
�
A
portable solar generation device that meets the requirements of this section

shall not be subject to any:

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(1)
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Net energy metering program
requirements under this chapter; or

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(2)
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Interconnection requirements under
part IX of this chapter.

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(b)
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A portable solar generation
device shall include a device or feature that prevents the portable solar
generation device from energizing the building's electrical system during a
power outage.

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(c)
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No electric utility company
shall
require a customer using a portable
solar generation device to:

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(1)
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Obtain the electric utility
company's approval to install or use the device;

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(2)
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Pay any fee or charge related to the
device; or

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(3)
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Install any additional controls or equipment
beyond what is integrated into the device.

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(d)
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A portable solar generation device may be
installed only within units in condominiums organized pursuant to chapter 514B.

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(e)
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No electric utility company s
hall be liable
for any damage or injury caused by a portable solar generation device.

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�269-
�
Portable solar generation devices; registration;
online system.
�
(a)
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The public utilities commission shall establish and maintain an online
system for registering portable solar generation devices in the State.
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The commission shall not require owners of
portable solar generation devices to pay a fee to register in the online
system.

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(b)
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The public utilities commission
may contract with a third party to establish and maintain the online
registration system required pursuant to this section.
"

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SECTION

3
.
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Section 269-1,
Hawaii Revised Statutes, is amended as follows:

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1.
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By adding a new definition to be
appropriately inserted and to read:

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"
"Portable
solar generation device" means a moveable photovoltaic generation device
that:

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(1)
�
Has a maximum power output of not
more than 1.2 kilowatts;

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(2)
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Is designed to be connected to a
building's electrical system through a standard one hundred and twenty-volt
alternating current outlet;

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(3)
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Is intended primarily to offset part
of the customer's consumption of electricity from electric utility companies;
and

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(4)
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Is certified by Underwriters
Laboratories, Inc., or an equivalent nationally recognized testing laboratory,
or each part of the device is so certified.
"

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2.
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By amending the definition of
"public utility" to read:

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"
"Public
utility":

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(1)
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Includes every person who may own,
control, operate, or manage as owner, lessee, trustee, receiver, or otherwise,
whether under a franchise, charter, license, articles of association, or
otherwise, any plant or equipment, or any part thereof, directly or indirectly
for public use for the transportation of passengers or freight; for the
conveyance or transmission of telecommunications messages; for the furnishing
of facilities for the transmission of intelligence by electricity within the
State or between points within the State by land, water, or air; for the
production, conveyance, transmission, delivery, or furnishing of light, power,
heat, cold, water, gas, or oil; for the storage or warehousing of goods; or for
the disposal of sewage; provided that the term shall include:

���������
(A)
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An owner or operator of a private sewer
company or sewer facility; and

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(B)
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A telecommunications carrier or
telecommunications common carrier; and

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(2)
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Shall not include:

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(A)
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An owner or operator of an aerial
transportation enterprise;

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(B)
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An owner or operator of a taxicab as
defined in this section;

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(C)
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Common carriers that transport only
freight on the public highways, unless operating within localities, along
routes, or between points that the public utilities commission finds to be
inadequately serviced without regulation under this chapter;

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(D)
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Persons engaged in the business of
warehousing or storage unless the commission finds that regulation is necessary
in the public interest;

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(E)
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A carrier by water to the extent that
the carrier enters into private contracts for towage, salvage, hauling, or
carriage between points within the State; provided that the towing, salvage,
hauling, or carriage is not pursuant to either an established schedule or an
undertaking to perform carriage services on behalf of the public generally;

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(F)
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A carrier by water, substantially
engaged in interstate or foreign commerce, that transports passengers on luxury
cruises between points within the State or on luxury round-trip cruises
returning to the point of departure;

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(G)
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Any user, owner, or operator of the
Hawaii electric system as defined under section 269-141;

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(H)
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A telecommunications provider only to
the extent determined by the public utilities commission pursuant to section
269-16.9;

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(I)
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Any person who controls, operates, or
manages plants or facilities developed pursuant to chapter 167 for conveying,
distributing, and transmitting water for irrigation and other purposes for
public use and purpose;

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(J)
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Any person who owns, controls,
operates, or manages plants or facilities for the reclamation of wastewater;
provided that:

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(i)
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The services of the facility are
provided pursuant to a service contract between the person and a state or
county agency and at least ten per cent of the wastewater processed is used
directly by the state or county agency that entered into the service contract;

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(ii)
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The primary function of the facility is
the processing of secondary treated wastewater that has been produced by a
municipal wastewater treatment facility owned by a state or county agency;

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(iii)
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The facility does not make sales of
water to residential customers;

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(iv)
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The facility may distribute and sell
recycled or reclaimed water to entities not covered by a state or county
service contract; provided that, in the absence of regulatory oversight and
direct competition, the distribution and sale of recycled or reclaimed water
shall be voluntary and its pricing fair and reasonable.
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For purposes of this subparagraph,
"recycled water" and "reclaimed water" means treated
wastewater that by design is intended or used for a beneficial purpose; and

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(v)
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The facility is not engaged, either
directly or indirectly, in the processing of food wastes;

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(K)
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Any person who owns, controls,
operates, or manages any seawater air conditioning district cooling project;
provided that at least fifty per cent of the energy required for the seawater
air conditioning district cooling system is provided by a renewable energy
resource, such as cold, deep seawater;

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(L)
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Any person who owns, controls,
operates, or manages plants or facilities primarily used to charge or discharge
a vehicle battery that provides power for vehicle propulsion;

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(M)
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Any person who:

��������������
(i)
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Owns, controls, operates, or manages a
renewable energy system that is located on a customer's property; and

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(ii)
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Provides, sells, or transmits the power
generated from that renewable energy system to an electric utility or to the
customer on whose property the renewable energy system is located; provided
that, for purposes of this subparagraph, a customer's property shall include
all contiguous property owned or leased by the customer without regard to
interruptions in contiguity caused by easements, public thoroughfares,
transportation rights-of-way, and utility rights-of-way; [
and
]

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(N)
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Any person who owns, controls,
operates, or manages a renewable energy system that is located on the person's
property and provides, sells, or transmits the power generated from that
renewable energy system to an electric utility or to lessees or tenants on the
person's property where the renewable energy system is located; provided that:

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(i)
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An interconnection, as defined in
section 269-141, is maintained with an electric public utility to preserve the
lessees' or tenants' ability to be served by an electric utility;

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(ii)
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The person does not use an electric
public utility's transmission or distribution lines to provide, sell, or
transmit electricity to lessees or tenants;

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(iii)
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At the time that the lease agreement is
signed, the rate charged to the lessee or tenant for the power generated by the
renewable energy system shall be no greater than the effective rate charged per
kilowatt hour from the applicable electric utility schedule filed with the
public utilities commission;

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(iv)
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The rate schedule or formula shall be
established for the duration of the lease, and the lease agreement entered into
by the lessee or tenant shall reflect the rate schedule or formula;

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(v)
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The lease agreement shall not abrogate
any terms or conditions of applicable tariffs for termination of services for
nonpayment of electric utility services or rules regarding health, safety, and
welfare; and

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(vi)
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The lease agreement shall
disclose:
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(1) the rate schedule or
formula for the duration of the lease agreement; (2) that, at the time that the
lease agreement is signed, the rate charged to the lessee or tenant for the
power generated by the renewable energy system shall be no greater than the
effective rate charged per kilowatt hour from the applicable electric utility
schedule filed with the public utilities commission; (3) that the lease
agreement shall not abrogate any terms or conditions of applicable tariffs for
termination of services for nonpayment of electric utility services or rules
regarding health, safety, and welfare; and (4) whether the lease is contingent
upon the purchase of electricity from the renewable energy system; provided
further that any disputes concerning the requirements of this provision shall
be resolved pursuant to the provisions of the lease agreement or chapter 521,
if applicable[
.
]
; and

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(O)
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Any person who owns, controls, operates,
or manages a portable solar generation device that is located on the person's
property.

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If
the application of this chapter is ordered by the commission in any case
provided in paragraph (2)(C), (D), (H), and (I), the business of any public
utility that presents evidence of bona fide operation on the date of the
commencement of the proceedings resulting in the order shall be presumed to be
necessary to the public convenience and necessity, but any certificate issued
under this proviso shall nevertheless be subject to terms and conditions as the
public utilities commission may prescribe, as provided in sections 269-16.9 and
269-20."

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3.
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By amending the definition of
"renewable energy system" to read:

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"
"Renewable
energy system" means any identifiable facility, equipment, apparatus, or
the like that converts renewable energy, as defined in section 269-91, to
useful thermal or electrical energy for heating, cooling, or reducing the use
of other types of energy that are dependent on fossil fuel for their
generation.
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"Renewable energy
system" does not include a portable solar generation device as defined in
this section.
"

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SECTION

4
.
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Section
269-101, Hawaii Revised Statutes, is amended by amending the definition of
"eligible customer-generator" to read as follows:

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""Eligible
customer-generator" means a metered residential or commercial customer,
including a government entity, of an electric utility who owns and operates a
solar, wind turbine, biomass, or hydroelectric energy generating facility, or a
hybrid system consisting of two or more of these facilities, that is:

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(1)
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Located on the customer's premises;

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(2)
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Operated in parallel with the utility's
transmission and distribution facilities;

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(3)
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In conformance with the utility's
interconnection requirements; and

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(4)
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Intended primarily to offset part or
all of the customer's own electrical requirements.

"Eligible
customer-generator" does not include a portable solar generation device as
defined in section 269-1.
"

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SECTION

5
.
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Section
514B-140, Hawaii Revised Statutes, is amended by amending subsection (c) to
read as follows:

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"
(c)
�
Subject to the provisions of the
declaration, nonmaterial additions to or alterations of the common elements or
units, including, without limitation, additions to or alterations of a unit
made within the unit or within a limited common element appurtenant to and for
the exclusive use of the unit, shall require approval only by the board, which
shall not unreasonably withhold the approval, and such percentage, number, or
group of unit owners as may be required by the declaration or bylaws;
provided
that:

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(1)
�
The installation of solar energy
devices by owners of condominium units shall be allowed upon written consent of
the board; and

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(2)
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The installation of solar energy
devices shall be allowed on single-family residential dwellings or townhouses
pursuant to the provisions in section 196‑7.

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As
used in this subsection:

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"Building-applied
photovoltaic" means any new identifiable facility, equipment, apparatus,
or the like, which turns solar energy into electric energy and is applied to
the outside of a building, such as roof-mounted photovoltaic solar panels.

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"Building-integrated
photovoltaic" means any new identifiable facility, equipment, apparatus,
or the like, which generates electricity from solar energy and is integrated
into the structural elements of a building, such as photovoltaic windows and
skylights.

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"Nonmaterial
additions and alterations" means an addition to or alteration of the
common elements or a unit that does not jeopardize the soundness or safety of
the property, reduce the value thereof, impair any easement, detract from the
appearance of the project, interfere with or deprive any nonconsenting owner of
the use or enjoyment of any part of property, or directly affect any
nonconsenting owner.

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"Passive
solar skylights or windows" means any skylight or window that regulates
heating and cooling but does not generate electricity from solar energy.

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"Solar
energy device" means any new identifiable facility, equipment, apparatus,
or the like which makes use of solar energy for heating, cooling, or reducing
the use of other types of energy dependent upon fossil fuel for its generation,
including but not limited to all types of building-applied photovoltaics and
building-integrated photovoltaics; provided that if the equipment sold cannot
be used as a solar device without its incorporation with other equipment, it
shall be installed in place and be ready to be made operational in order to
qualify as a "solar energy device"[
; provided further that
"solar
]
.
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"Solar energy
device" includes a portable solar generation device as defined in section
269-1.
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"Solar
energy
device" shall not include passive solar skylights or windows.

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"Townhouse"
means a series of individual houses, having architectural unity and a common
wall between each unit; provided that each unit extends from the ground to the
roof."

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SECTION

6
.
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The public
utilities commission shall submit biannual progress reports on the use of
portable solar generation devices to the legislature no later than twenty days
prior to the convening of the regular sessions of 2027 and 2028 and no later
than twenty days after the adjournment sine die of the regular sessions of 2027
and 2028.
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The reports shall include but
not be limited to:

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(1)
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The number of portable solar generation
devices registered with the commission;

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(2)
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Any problems encountered by registrants
and electric utility companies; and

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(3)
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The commission's findings,
recommendations, and any proposed legislation.

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SECTION
7.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.

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SECTION

8
.
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This Act shall
take effect on July 1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

PUC; Portable
Solar Generation Device; Condominiums; Requirements; Registration; Online
System; Reports

Description:

Defines "portable
solar generation device" and establishes certain requirements for their regulation
and use exclusively within units in condominiums organized pursuant to Chapter 514B,
HRS.
�
Requires the Public Utilities
Commission to establish an online registration system.
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Clarifies that portable solar generation
devices are subject to certain approval procedures for installation in
condominiums.
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Requires reports to the
Legislature.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.