HECO Solar Programs: The Complete Hawaii Homeowner's Guide
HECO Solar Programs: The Complete Hawaii Homeowner's Guide
HECO solar programs determine exactly how much you get paid for the extra solar energy your system sends back to the grid — and picking the wrong one can quietly cost you hundreds of dollars a year. If you're a homeowner trying to go solar or you're already enrolled in an older HECO program, the current lineup includes Net Energy Metering (NEM/NEM+, closed to new customers but grandfathered), Customer Grid Supply and CGS+, and the newer Smart DER Export (SDE) and Smart DER Non-Export (SDN) programs, along with Bring Your Own Device (BYOD) for battery owners.
For Oahu, Maui, and Big Island homeowners, this isn't just paperwork — it directly affects your monthly bill, your payback timeline, and whether battery storage makes financial sense for your home. Utilities and rate structures change, and HECO has restructured its solar programs several times since 2015, which means many homeowners are now sitting in a program that no longer offers the best return.
By the end of this guide, you'll understand what each HECO solar program actually pays, how the transition to Smart DER Export works if you're on an older plan, and how to decide whether Time of Use billing helps or hurts your situation. Let's break down what's currently available.
What HECO Solar Programs Actually Are
HECO solar programs are the billing and interconnection structures that determine how homeowners with rooftop solar are credited for the electricity they send back to the grid. Since Hawaii ended traditional net metering for new customers in 2015, HECO has rolled out a series of replacement programs, and understanding where you fit in that lineup is the first step to getting the most value out of your system.
Here's why this matters in practical terms: not every HECO solar program pays the same rate for exported energy, and some only credit you during specific hours of the day. A homeowner who assumes their old agreement still applies — or who gets auto-enrolled into a program that doesn't match their usage pattern — can end up leaving real savings on the table every single billing cycle.
The current landscape breaks down into a few categories. Legacy NEM and NEM+ customers keep their original one-to-one credit structure and aren't required to change anything. Customer Grid Supply, CGS+, and the original Smart Export program are being transitioned into Smart DER Export (SDE) over a seven-year window starting October 1, 2024, with HECO handling the switch automatically. New solar customers today are generally enrolled directly into SDE because it typically offers the strongest return, and most PV-plus-battery households eligible for extra incentives should also look at the HECO Battery Solution Program before finalizing their system design. One common misconception is that all HECO solar programs pay a flat rate for every kilowatt-hour exported — in reality, several of them pay different rates depending on the time of day you send power to the grid, which is exactly what the next section covers.
Comparing HECO's Current Solar Programs
Understanding how HECO solar programs differ from one another is the difference between a solar system that maximizes your bill savings and one that just sits on your roof underperforming its potential. This section walks through each program so you know exactly where you stand — and what you're eligible to switch to.
Net Energy Metering (NEM and NEM+)
NEM was Hawaii's original solar billing structure, crediting exported energy on a one-to-one basis against what you pull from the grid. It's been closed to new applicants since 2015, but if you're one of the homeowners still grandfathered into NEM or NEM+, you're not required to transition to any of the newer HECO solar programs — your existing agreement stays in place. That said, some legacy NEM customers voluntarily explore switching only when pairing a new battery system genuinely changes the math in their favor.
Customer Grid Supply and CGS+ (Transitioning to SDE)
Customer Grid Supply (CGS) and its successor, CGS+, paid a modest fixed rate for exported solar energy any time the sun was shining, with no time-of-day restrictions. If you enrolled in CGS, CGS+, or the original Smart Export program, HECO is automatically transitioning your account to Smart DER Export within seven years of your original agreement date, starting with accounts from October 1, 2024. You don't need to apply for anything — but it's worth understanding what you're moving into.
Smart DER Export (SDE)
Smart DER Export is the current default program for most new HECO solar programs applicants, and it's built around pairing solar with battery storage. Under SDE, you earn export credits for energy sent to the grid during the evening, overnight, and early morning hours, when the value to the grid is highest. Unlike the old CGS structure, unused SDE credits roll over to your next billing cycle instead of expiring, which protects more of the value from months when you generate more than you use.
Smart DER Non-Export and Customer Self-Supply
If your battery system is sized to cover essentially all of your own nighttime usage, Customer Self-Supply or the non-export track under Smart DER (SDN) may fit better than an export-based program. These options don't send meaningful energy back to the grid, so they skip export credits entirely in exchange for simpler billing.
Bring Your Own Device (BYOD)
For homeowners adding battery storage to an existing or new system, Bring Your Own Device (BYOD) replaced the earlier Battery Bonus incentive in most areas (Battery Bonus remains open on Maui only until its capacity cap or deadline is reached). BYOD provides incentives for dispatching stored battery power back to the grid during specific high-demand windows, which can meaningfully offset the upfront cost of a battery when it's paired correctly with your solar system and selected through a qualified PV provider.
Choosing correctly among these HECO solar programs comes down to your household's usage pattern, whether you have or plan to add a battery, and how much flexibility you have to shift energy use to off-peak hours — which brings us to Time of Use.
Time of Use, Shift and Save, and Real Homeowner Scenarios
Once you understand the HECO solar programs themselves, the next practical decision is whether to participate in Time of Use (TOU) billing, marketed by HECO as "Shift and Save." Seeing how this plays out for actual households makes the trade-offs much clearer.
TOU splits each day into pricing tiers — a lower daytime rate (roughly 9 a.m. to 5 p.m.), a mid-range overnight rate, and a notably higher rate during the 5 p.m. to 9 p.m. evening peak. A Kailua family that runs their dishwasher, laundry, and EV charger during work hours found TOU genuinely lowered their bill, since most of their higher-consumption tasks happened outside the expensive evening window. A retired couple on the North Shore, however, found the opposite: because they were home cooking dinner and running air conditioning every evening between 5 and 9 p.m., the high TOU rate quickly outweighed any daytime savings, and they opted out in favor of the standard flat rate.
New PV customers are automatically enrolled in TOU by default alongside their chosen HECO solar program, but opting out is straightforward if your evening habits don't fit the schedule. The takeaway is simple: TOU rewards homeowners who can shift usage away from evening hours, and it penalizes those who can't — so it's worth reviewing your actual daily routine before deciding to stay enrolled.
Best Practices for Getting the Most from HECO Solar Programs
Once you know how HECO solar programs and Time of Use billing work, a few practical habits make sure you're actually capturing the value they offer.
Confirm Which Program You're Currently Enrolled In
Many homeowners assume they're still on their original agreement when HECO has already transitioned them. Check a recent bill or your HECO online account to confirm your current program before making any system changes.
Size Your Battery to Your Actual Program
A battery sized for Smart DER Export's evening export window works differently than one sized for Customer Self-Supply. Match your battery capacity to the program you're actually on, not a generic recommendation, and lean on your PV provider's load analysis to get this right.
Track Your Evening Usage Before Choosing TOU
Pull up a few months of hourly usage data if your smart meter provides it. If a meaningful share of your consumption happens between 5 and 9 p.m., TOU is likely to cost more than it saves.
Revisit Your Program Annually
HECO solar programs have changed multiple times since 2015, and policy shifts are ongoing. A program that was optimal at installation may not stay that way — a quick annual check keeps your system aligned with the current rate structure.
Don't Assume Every Installer Explains This Clearly
Not every solar company walks customers through program selection in detail. Ask directly which HECO solar program you'll be enrolled in and why, before signing anything.
Applying these habits consistently is what keeps your system's actual savings matching what was promised at installation.
Choosing the Right HECO Solar Program for Your Home
Now you know how HECO solar programs work: from legacy NEM agreements to the CGS-to-SDE transition, the mechanics of Smart DER Export and Non-Export, and how Time of Use billing can help or hurt depending on your household's schedule.
Getting this right matters because the difference between the best-fit program and a mismatched one can add up to real money every year, and it directly affects whether adding battery storage makes financial sense for your home. Reviewing your current enrollment now — rather than after your next bill surprises you — puts that decision back in your hands.
If you want a clear breakdown of which HECO solar program fits your home and usage pattern, get a free solar estimate from Alternate Energy Hawaii and get a straight answer before you commit to a system.
Frequently Asked Questions
What are the current HECO solar programs available to homeowners?
The current HECO solar programs include legacy NEM/NEM+ (closed to new applicants), Customer Grid Supply and CGS+ (transitioning to SDE), Smart DER Export (SDE), Smart DER Non-Export (SDN), Customer Self-Supply, and Bring Your Own Device (BYOD) for battery owners. Most new applicants are enrolled directly into SDE.
Do I have to switch from CGS to Smart DER Export?
If you're enrolled in Customer Grid Supply, CGS+, or the original Smart Export program, HECO will automatically transition your account to Smart DER Export within seven years of your original agreement date, starting October 1, 2024. You don't need to apply — HECO handles the switch.
Is Time of Use (Shift and Save) worth it for solar customers?
It depends on your household's evening energy use. TOU can lower your bill if you shift most usage to daytime hours, but the high 5–9 p.m. rate can outweigh those savings if you're home and running appliances during that window.
Will adding a battery change which HECO solar program makes sense?
Yes. Battery storage often shifts the best-fit program from an export-focused one like SDE toward Customer Self-Supply, and it opens up incentives through Bring Your Own Device and HECO's Battery Solution Program that aren't available to solar-only systems.
How do I find out which HECO solar program I'm currently enrolled in?
Check a recent HECO bill or log into your HECO online account, where your current program is typically listed under your service or rate plan details. Your solar installer or project developer can also confirm this on your behalf.
