HECO forecasts 10% to 20% increase in electricity costs in Hawaii

HECO forecasts 10% to 20% increase in electricity costs in Hawaii

The biggest local utility, Hawaiian Electric Company (HECO) recently revealed an announcement that they’re going to increase energy rates by 10-20%. With such drastic price changes happening, people living on the islands may wonder how they can keep their energy costs under control.

Experts predict these hikes will have far-reaching consequences for Hawaii’s economy, discouraging potential migrants and ultimately raising costs of living.

Why did prices hike up?

Numerous reasons including a rise in international oil prices and Russia’s invasion of Ukrainian territories, Hawaiian Electric Company predicts that electricity rates will rise even higher this year. They warn people living in the state of possible future hikes coming their way.

The current energy situation will remain volatile and unpredictable, with no clear end in sight. As such, it’s hard to say how much longer these price hikes will last or how large they might get.

Big Island and Maui County are most likely to be affected by higher electricity rates. Residents of these areas are especially alarmed to pay about 20% more on their electricity bills every month. This is especially true for those who use more than 200 kilowatts per hour which could lead to a substantial increase in the total sum of one’s bill at the end of each cycle.

What can be done to avoid or reduce this Impact?

If you’re a resident of Hawaii, then chances are that you’ve noticed that your electricity bill is on its way up.  And if you’re a business owner in Hawaii, then it might be time to start considering how these changes will affect your bottom line. Regardless of whether you’re an individual or a company, there are ways to manage and reduce expenses so that it doesn’t hit your wallet so hard.

1. Reduce your electricity usage:

By unplugging electronics when not in use, turning off lights and other appliances when you leave a room, and running only full loads of laundry and dishwasher.

2. Credit Rewards with Grid-service aggregators:

If you’re already a customer of Hawaiian Electric Company (HECO), consider signing up for their rewards program, by connecting with grid-service aggregators. These companies are looking for customers who own solar panels or electric vehicles because they will be able to earn more credits from the power company. This means lower bills for these customers in return.

3. Consider Electric Vehicles (EV):

If you’re in a position to purchase an electric vehicle, consider it a great option for reducing your carbon footprint and saving money on fuel costs. Charging your EV at night time when electricity rates are lower is just one way you can save money.

4. Use renewable energy sources such as solar and wind power:

Installing solar panels or a wind turbine can offer a major relief in reducing your electricity cost and carbon footprint. In Hawaii, there are tax credits offered for both residential and commercial renewable energy systems. A resident who decides to install solar panels on their home may see their monthly electric bill dropped by as much as 50%.

5. Reduce the usage of heat-generating machines:

If you’re conscious about your energy bill, reducing your use of gas or electric dryers, hot water heaters, and space heaters can help keep your energy costs down. Consider the option of a heat pump water heater, available with a handsome $500 rebate from Hawaiian Electric Company (HECO). This type of water heater requires minimal electricity to operate but saves a lot of money on heating bills over time.

6. Community Solar Systems:

Another option for reducing your energy costs is to sign up for a community solar system, which allows you to receive credit on your electricity bill based on power generated by a nearby solar farm. If you live in an apartment or condo, these systems can be a great way to reduce your carbon footprint and save money on electricity by installing a centralized solar system on a common rooftop.