Risk Grade

Excellent

High existing solar penetration on KIUC grid; additional utility-scale constrained by grid headroom, not policy opposition; strong co-op model and community support.

Assessment Snapshot

Population

73,798

State Rank

Compliance

35%

Trajectory

Moratorium Status

✓ No Active Moratorium

No Moratorium

Ordinance & Regulations

Setback Requirements

Kauai County Zoning Ordinance sets setbacks per zoning district. Utility-scale projects require SUP from Planning Commission. Agricultural land conversion subject to State LUC review.

Zoning Mechanism

Kauai County Planning Commission issues SUPs for utility-scale in Agricultural zone. KIUC RFP/competitive process for new renewable contracts. State LUC approval required for reclassification.

Acreage Caps

None codified; KIUC grid capacity is the primary constraint on new utility-scale additions.

Density Caps

None codified.

Spacing Rules

None codified.

Size Restrictions

KIUC grid saturation limits large new additions without battery storage co-location.

Board Sentiment & Political Risk

Sentiment Analysis

Very supportive — Kauai has been a national model for high-penetration island solar + storage. KIUC cooperative ownership aligns community interest with renewable deployment.

Basis for Assessment

KIUC co-op model gives member-ratepayers direct stake in cost savings from solar; County Council and Mayor Derek Kawakami administration strongly pro-renewable; Kauai at ~80% renewable daily energy is one of highest penetration grids in US.

Political Risk Factors

Improving

Board Members

Kauai County Council — 7 members. Council Chair: Arryl Kaneshiro. Mayor: Derek Kawakami. Key council members: KipuKai Kuali'i, Luke Evslin.

Grid, Utilities & State Context

Grid Operator

Kauai Island Utility Cooperative (KIUC) / Kauai island grid — no interstate interconnection

Utilities

Kauai Island Utility Cooperative (KIUC) — member-owned electric cooperative, None (island grid)

State Permitting Process

Kauai County Planning Commission SUP for utility-scale in Agricultural zone. State LUC district boundary amendment if applicable. Chapter 343 HRS environmental review. KIUC interconnection study and PPA negotiation via competitive RFP. Coastal Zone Management (CZM) review for shoreline-adjacent projects.

State Incentives

Hawaii State RPS 100% by 2045. KIUC administers own RFP process for renewable PPAs — not subject to HECO/PUC process. State tax credit 35% of system cost. CGS tariff equivalent administered by KIUC. USDA REAP grants available for agricultural solar.

Development Activity

Active/Completed Projects

Denied/Withdrawn Projects

No major county denials on record. KIUC has used competitive RFP process; some bids declined due to pricing or grid constraints.

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Kauai County, HI — Solar Development Risk Assessment