Hawaii solar rebates and tax credits calculator

Solar incentive

Federal ITC 30% (tax credit)

State tax credit: Yes ($2,250)

Net metering (by utility)

Calculate for your home's location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Hawaii solar incentives 2024

Electricity prices here in Hawaii remain the second highest in the nation, making it one of the most practical places to install solar. Innovative new on-bill repayment plans have been great at assisting low income residents to install their own solar energy systems.

How much money you can save with solar depends on which island you live on and how much electricity you use. Everyone in Hawaii can grab the US federal solar tax credit equal to 26% of the costs to go solar. It's important to note that Hawaii's state government also has your back if you’re considering going solar, with its own state solar tax credit.

Even without huge incentives or a perfect net metering program, the state is committed to achieving 100% renewable energy by 2045, and they're gonna need a lot of help from folks like you to do it. On the islands of Oahu, Maui, or Hawaii, HECO has a Quick Connect program to help you get solar panels installed quickly and boost the local economy.

Read on to learn about solar panel policy, incentives, and savings in Hawaii, and get ready to go solar!

On this page, you can:

  1. Learn what solar incentives are available to Hawaii homeowners

  2. See what Hawaii solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Hawaii solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Hawaii

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

Net energy metering in Hawaii

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.

Hawaii no longer has net metering for solar owners. Instead, HECO has switched to giving homeowners a choice. In Hawaii, you can set up your solar panels under a system called "Customer Self Supply," which means you have to use all the solar energy to power your home (hello, batteries!) or "Customer Grid Supply," which means you send all your solar energy to HECO, and they pay you less than retail prices for it.

Finding out which system works best for you can be complicated, so make sure to connect with a solar expert near you to get help with this complicated decision.

Hawaii solar rebates

Hawaii no longer has any cash rebate programs, but there are may other kinds of incentives available to help you save money when you go solar. Most importantly, Hawaii offers a sweet tax credit to its citizens that combines with the federal solar tax credit to wipe out a huge portion of the cost to buy solar panels.

Hawaii's 35% solar tax credit

Here's where Hawaii wins when it comes to solar. If you buy a solar system in the Aloha state, you'll see 35% of the cost (up to $2,250) come back as a credit at tax time, in addition to the federal tax credit of 26% (with no limit)!

When April 15th rolls around, an average 6kW system that costs just over $18,000 will net you an estimated $6,500 back from both credits, provided you have some tax appetite. Wow.

Hawaii solar property tax exemption

When you install a solar power system, your home appreciates by twenty times your annual electricity savings. When you add a solar power system, you add value to your home. How much value you add depends on how much money you save on your energy bill.

In a state like Hawaii, solar panels can save you a lot – more than anywhere else in the country, in fact. Normally, as you are all too aware, an increase in your home’s value means a corresponding increase in property taxes. Many, if not most states exempt you from those property taxes. Hawaii sadly lacks such a statewide law.

Don’t panic just yet though. The City and County of Honolulu has passed their own property tax exemption! No, that’s not the entire state, but it is about 70% of the people here in Hawaii.

If you’re one of those 70%, you’re already golden – you’re 100% exempted from property taxes associated with your new solar power system for 25 years. If you’re one of the unlucky 3 in 10, it sounds like we all need to get on the phone to the state capitol to tell them we want solar power tax exemptions!

Low-income solar programs

GEMS Loam Program

If you’re a HECO customer making 140% or less of area median income, you can qualify for a special program called a Green Energy Market Securitization (GEMS) laon. The program grants you the ability to install solar for $0 down with a special loan you repay on your HECO electric bill automatically. Your system must provide enough power that even after your loan you have 10% savings over what you were paying previous to your solar installation.

There are no credit requirements, and the loan is not attached to your name, it’s attached to your electric meter instead!

Low-interest solar loans in Honolulu

In Honolulu city and county, you can get a 0% interest loan for a new roof and solar installation over a term of 10 or 20 years! The amount can be up to $60,000, here is the application information. Work with your installer to claim this amazing deal.

Cost of solar panels in your part of Hawaii after all applicable solar incentives

Showing data for:

Utility provider: Hawaiian Electric
Utility bill: $ 370

Prices based on a 8.4kW system, after 30% federal tax credit

Solar prices near you

Cost range of local prices

$16,398-$20,042

Payback period

6.1-7.4 years

Net profit (savings less system cost)

$49,879-$60,963

Average size system installed in HI in 2024

8.4kW

Solar panel cost calculator

Best 10 solar companies in Hawaii

26 solar companies in Hawaii provide pricing on SolarReviews. Here are the best rated companies near you.

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