If approved by the PUC, the system will be installed on the roof of Archer Substation at Hawaiian Electric's Ward Avenue facility and will be rated at a minimum 167 kilowatts, one of the largest single-site PV systems on Oahu to date.

Hawaiian Electric issued a request for proposals in March 2007 and after selection of Hoku Solar, entered into formal energy purchase negotiations. The final agreement is now subject to review and approval by the commission.

Hoku Solar, a Hawaii-based company that designs, engineers, and installs turnkey PV power systems, will own and operate the system and charge Hawaiian Electric for the power generated at a fixed rate over 20 years.

This long-term, fixed energy pricing is consistent with the recent direction for Hawaiian Electric to secure renewable energy at a cost not tied to oil prices and is possible since PV is among technologies not facing costs for fuel which may vary from year to year. The utility will have an option to purchase the system from Hoku after five years. The installation is expected to be in service in 2008.

Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, "Solar electricity makes sense in Hawaii. The agreement between Hawaiian Electric and Hoku Solar sets a great example for other businesses on how to install a PV system without incurring upfront costs in order to lock in a long-term electricity rate and support renewables. We look forward to completing this project for HECO."

"We are pleased to be working with Hoku Solar, one of Hawaii's leading clean energy technology companies," said Dave Waller, Hawaiian Electric vice president for customer solutions. "There is a tremendous upsurge in photovoltaic energy worldwide, including in Hawaii. Hawaiian Electric has had demonstration projects and continues to promote Sun Power for Schools, but this will be our first utility-sited, larger-scale commercial PV project. With increased concern about energy prices and security, PV and other renewables can reduce Hawaii's dependence on imported oil and help protect our environment."