Third Party Owned Systems

Project sponsored systems are another financing structure for attaining 100% Clean Energy in the State of Hawaii by 2045.

How does a third-party owned system work?

  • A project sponsor or investor finances the purchase, installation, maintenance, and operation of an energy improvement or solar system
  • Energy produced by the solar system is sold to the ratepayer (“offtaker”)
  • The offtaker pays a pre-agreed upon amount for the energy (kWh) produced by the solar system through an Energy Services or Power Purchase Agreement  

Who is eligible?

  • Offtakers must be ratepayers who are low and moderate-income homeowners or renters, nonprofits, small businesses, or multifamily rental projects
  • Properties must be located within the service territories of the Hawaiian Electric Company (HECO, MECO, or HELCO)

What are the benefits of an HGIA financed third party owned system?



  • Energy Services or Power Purchase Agreement may be conveniently paid on the electric utility bill
  • No upfront costs
  • Offtaker may assume GEM$ debt as part of purchase price when exercising a purchase option
  • Access to cleaner affordable energy without the hassle of ownership

     Project sponsor:

  • Below market, long-term fixed interest rates
  • Ability to monetize tax credit through a co-lending facility
  • Access to GEM$ on-bill repayment mechanism to service Energy Services or Power Purchase Agreement