HI HB1823

Increases the individual customer capacity limit for net energy metering from 50 kilowatts to 1 megawatt for eligible customer-generators.

Establishes different rate structures for systems interconnected before and after June 30, 2016: pre-2016 systems continue using retail rates for excess energy, while post-2016 systems have excess electricity valued at a rate determined by the Public Utilities Commission based on avoided capacity, operating, maintenance, fuel, and environmental costs.

Replaces the 0.5% system peak demand cap with a total capacity limit to be determined by the Public Utilities Commission equal to the aggregate generating capacity that can be interconnected without requiring substantial new utility expenditures for grid reliability.

Allows eligible customer-generators to lease or purchase electricity from renewable energy facilities (solar, wind, biomass, hydroelectric, or hybrid systems) in addition to owning them, and prohibits utilities from unreasonably denying or delaying net energy metering service requests.

Takes effect on July 1, 2045.