Energy efficiency pays.

• Position: Brief article

The Hawaii Legislature recently joined New Hampshire in establishing a Pay-As-You-Save (PAYS[R]) pilot project. The program allows building owners and tenants to purchase and install renewable energy products with no up-front payment or debt commitment. A charge is added to utility bills for as long as the owner or tenant occupies the building. When they leave, the charge passes to the next owner or tenant. In Hawaii, all customers at a building with a PAYS[R] solar hot water heater will pay less than they would have without the energy saving equipment. The charge is structured to be less than the energy savings over the course of each year.

A customer's electricity distribution company, energy supplier, a third-party capital provider or product vendor provides the up-front capital to purchase the equipment. Whoever supplies the capital is repaid (including financing costs) through the customer's monthly PAYS[R] tariff.

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