MerrandaR_ECO365_WK3.docx

MerrandaR_ECO365_WK3.docx - Running head HECO VERSUS SOLAR...

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Running head: HECO VERSUS SOLAR 1 HECO Versus Solar Merranda Ramirez ECO365 February 17, 2018 William Akamine
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HECO VERSUS SOLAR 2 HECO Versus Solar Solar energy is a source of electricity that is becoming more than just a fad. Solar energy may not be a pioneer in its’ industry, but they are vastly becoming the more preferred source. Some places, like Hawaii, only have one electric company and they do not have a choice. Now they have a choice between the Hawaiian Electric Company (HECO) and the Solar industry. However, there are some factors that will determine a products total revenue and the company they are in competition with; international trade opportunities, factors that affect the supply, demand, and the prices of product, and factors that affect the total revenue of a total product. HECO versus Solar HECO has been the only source for the Hawaiian residents to get their electricity since October 13, 1891 (HECO History & Timeline, 2018). They have are responsible for providing power to the vast majority of the residents that live in Hawaii. Thus, making them a monopoly since they are the only company to provide electricity in the state of Oahu. This was until recently when Solar energy was brought to the state of Oahu. The leading company for solar energy is SunRun (SunRun Investor Relations, 2018). On Oahu there is the presence of other Solar companies, like Revolusun, Solar City, and Vivint Solar. HECO and SunRun are in direct competition with each other. Even though Hawaii wants to turn green, there are some issues between the solar industry and the regular electricity. Now that there is a Solar competitor, this makes HECO and the Solar Industry an Oligopoly. HECO is working directly with the Solar Industry to put measures in place that benefit both companies. For example, HECO has Net Metering in place for the use of the GRID for solar. Net Metering allows for Grid control and for energy production to be monitored and credits to be provided. Comparison and Trade Opportunities
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HECO VERSUS SOLAR 3 In 2016, the cost per kilowatt for energy was approximately 26 cents. Whereas now, if a resident has solar is it 13 cents per kilowatt (HECO, 2018). The cost that a resident in Hawaii
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