Big solar-plus-storage project will be one of Hawaii utility’s lowest-cost power sources

Facebook
Twitter
LinkedIn
Reddit
Email
The coast of Kaua'i. Battery storage is described as an essential component of Hawaii's 10% renewable energy ambitions. Image: Flikcr user Paul Bica.

Hawaii’s KIUC, the top-ranked US utility in 2017 for energy storage deployment per customer by SEPA (Smart Electric Power Alliance), will pay less than US$0.11 per kWh for power from a new solar-plus-storage facility.

A power purchase agreement (PPA) has been signed by the electric cooperative with project developer and constructor AES Distributed Energy for 25 years, brokered at a price of US$0.1085 per kilowatt-hour. The utility said the facility will become one of its “lowest-cost power sources”, with 19.3MW of solar paired to 70MWh of battery energy storage capacity.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

State regulator the Public Utilities’ Commission (PUC) gave KIUC (Kaua’i Island Utility Cooperative) approval for the project a few days ago for the newest project, which will be housed on land rented from the military at Pacific Missile Range Facility – Barking Sands (PMRF). It will also be available to the base's facilities to provide power in the event of blackouts and other disruptions as it can be 'islanded' from the grid.

Hawaii is regularly cited as a perfect ‘test bed’ for solar integration that could be applicable for the rest of the US and SEPA found that KIUC made 415.3 watts of energy storage deployments per customer in 2017, way ahead of Arizona utility Tucson Electric Power (TUC) in second on just 50 watts. Much of this has been centred around creating dispatchable solar using batteries to mitigate evening peak demand, an analyst with I.H.S Markit recently said, while KIUC representatives have said that battery storage is a “necessity” for Hawaii to reach a target of 100% renewable energy by 2045.

It comes in just under the cost of power for an even larger solar-plus-storage system already announced for KIUC to be built by AES DE, a 28MW PV farm with 20MW / 100MWh of energy storage, also on Kauai. The cost of power from that installation is slightly higher at US$0.11 per kWh, as reported by Energy-Storage.news in February as that project was announced. Integrated PV company SunPower will supply the PV portion of that project with its scalable Oasis Power Plant platform.

The two projects join Tesla’s 52MWh dispatchable solar-plus-storage project, completed in 2017 in KIUC’s large-scale energy storage portfolio and will later still be joined by a modest 25MW pumped hydro project under construction on the west of Kauai island.

Read Next

September 25, 2026
Welcome to the PV Tech Best of the Week roundup, covering the week's biggest stories from the global solar industry.
Premium
September 25, 2026
Bright Saver co-founder Cora Stryker examines how fragmented state policies are shaping the US plug-in market’s growth.
September 25, 2026
The US Department of Energy’s (DOE) Office of Electricity (OE) will funnel US$5.25 billion into 31 “grid-improvement” projects across the US, which it claims will allow for 23GW of additional electricity capacity.
Premium
September 24, 2026
Henner Jahnke of Jurchen Technology examines whether high-density east-west systems can outperform trackers under today’s solar economics.
Premium
September 24, 2026
US Policy Focus: PV Tech looks at the Indian AD/CVD determinations, the ban on certain power equipment and other recent developments.
September 23, 2026
The US has published new limits on polysilicon imports to the US ahead of new tariffs coming into force on 4 December.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
February 2, 2027
London, UK
Solar Media Events
April 20, 2027
Istanbul, Türkiye