The solar farm’s total cost is estimated at $41.2 million. The facility, to be located on Grove Farm land on the south shore, will tie into the Koloa substation.

The co-op is taking out a 25-year loan to pay for the project. The rate for each megawatt-hour of energy is anticipated to be $165, but interest rates could cause that to spike.

Part of the agreement with the commission, which approved a waiver for the project, includes a 90-hour annual limit on how much of the solar energy the co-op can dump from the plant.

This so-called curtailment aspect has become a huge issue with wind farms operated by Maui Electric. The company is wasting more than 15,000 megawatts of wind energy each year in favor of costlier oil plants.

MECO says its hands are tied but the PUC wants it to change its ways. Of course, KIUC is a co-op, which means not having to worry about making money for shareholders.

Check out the commission’s order, issued Wednesday, here. 

— Nathan Eagle

(Photo by Chandra Marsono via Flickr)