Solar Incentives and Rebates in Hawaii

Peak Sun Hours (PSH): 6
Cost of Grid Power: $0.33/kWh
Number Of Installations: 91,633

What’s the Cost of Solar in Hawaii?

Cost of Grid Power

Hawaii's electricity prices average $0.33/kWh, the second-highest power costs in the United States.

Solar power accounted for about 60% of Hawaii's renewable generation in 2019. Rooftop solar power generating capacity more than doubled from 2015 to 2019. The state does have a net metering program, but due to the small-scale generation cap having been reached the program is currently closed to any new applicants. In its place are two programs. With Customer Self Supply, homeowners have to consume all of the solar energy they produce, which often involves a solar battery bank. With Customer Grid Supply, all solar energy produced is sold to the Hawaiian Electric Company (HECO) for less than standard retail price.

Cost of a Solar Install

The average cost of a 5kW (equivalent to saving almost 100 trees a year) solar power system starts around $9,000 in Hawaii. That system would pay for itself through energy savings within 4-5 years. System life can span well over 25 years, and savings will improve with inflation. Remember you have to factor in not only the federal Investment Tax Credit (ITC), but also the state Solar Tax Credit for up to 35% of the cost or up to $2,250.

Global Leadership in Renewable Energy

Governor David Ige signed the country's first 100% renewable energy requirement into law in June 2015, affirming Hawaii's position as a global leader in renewable energy policy. Currently the state is exceeding its incremental target goals.

Hawaii has a long history as an energy policy leader. Near the end of its hundred years as a sovereign nation King Kalakaua and his sister Queen Lili’uokalani, oversaw the installation of electrical lighting and a telephone system in the royal palace. Installation was completed in 1887, four years before the White House would receive similar upgrades.

The whole city of Honolulu got electrical power just fourteen months later. King Kalakaua built a hydroelectric dam with his own money, meaning that for a time the grid used 100% renewable energy.

In 2009 the Honolulu City Council unanimously passed a 25-year property tax exemption for alternative energy improvements, further incentivizing 70% of Hawaii's population to go solar!

What Incentives are Available in Hawaii?

Data from DSIRE. For more info visit:

Name Implementing Sector Program Type Administrator DSIRE ID
Solar Rights State Solar/Wind Access Policy 343
Kauai Electric - Residential Solar Water Heating Program Utility Rebate Program Kauai Island Utility Coop 594
Capital Goods Excise Tax Credit State Corporate Tax Credit Hawaii Department of Taxation 714
Interconnection Standards State Interconnection 989
Priority Permit Processing for Green Buildings State Green Building Incentive 2287
Public Benefits Fee for Energy Efficiency State Public Benefits Fund 2960
Solar Water Heating Requirement for New Residential Construction State Building Energy Code 2987
Local Option - Special Improvement Districts State PACE Financing Programs administered locally 3870
Energy Efficiency Portfolio Standard State Energy Efficiency Resource Standard 4511
Fuel Mix Disclosure State Generation Disclosure 4678
Residential Energy Disclosure State Other Policy 5325
Commercial Energy Efficiency Rebate Program State Rebate Program Hawaii Energy 5355
Green Infrastructure Bonds State Bond Program Hawaii Green Infrastructure Authority 5437
On-Bill Financing State Loan Program Hawaii Energy 5438
Feed-in-Tariff State Feed-in Tariff 5671
Hawaii Department of Business, Economic Development and Tourism - Green Business Program State Energy Analysis Hawaii Department of Business, Economic Development and Tourism 16098


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