HI HB1256

Establishes a feed-in tariff system for eligible customer-generators who produce solar, wind, biomass, or hydroelectric electricity and feed excess power back to the grid.

Changes compensation structure so customer-generators are paid the feed-in tariff rate for electricity fed onto the grid while paying the retail rate for electricity supplied by the utility.

Allows dollar credits from excess electricity production to carry over to the next monthly billing cycle for a twelve-month period, with unused credits paid out as compensation at the end of each twelve-month reconciliation period.

Requires electric utilities to establish tariffs based on both retail rates and feed-in tariff rates as established by the public utilities commission.

Takes effect on July 1, 2013 and applies to residential and commercial customers, including government entities, with generating facilities located on their premises and operated in parallel with utility infrastructure.