Does Hawaii have net metering?

Yes. Hawaii requires utilities to credit excess solar generation under net metering rules. The credit rate varies by utility but typically reduces a homeowner's effective electricity bill to near zero.

Can I combine the Hawaii solar incentives with the federal tax credit?

Yes. The federal Residential Clean Energy Credit (30%) stacks with state and utility incentives in Hawaii. Filing Form 5695 with your federal return claims the federal portion; Hawaii residents file the state credit separately on their state return.

What is the average payback period for solar in Hawaii?

The average Hawaii homeowner reaches solar payback in 6 to 9 years, depending on system size, electricity rate, and the specific utility. After payback, the system continues producing electricity for another 16 to 19 years under standard 25-year panel warranties.

::HI_INCENTIVES // 2026

HawaiiSolar Incentives 2026: Tax Credits, Rebates & Net Metering

Hawaii homeowners can reduce solar installation costs by up to 65% through state and federal incentives. With average monthly bills of $290 and 5.8 peak sun hours per day, the average HI homeowner saves $71,200 over 25 years.

State Tax Credit[ ACTIVE ]

35% (max $5,000)

Net Metering[ ACTIVE ]

modified rate

SREC Market[ NONE ]

No SREC market

Property Tax Exempt[ ACTIVE ]

Solar excluded from assessment

Sales Tax Exempt[ NONE ]

No exemption

Federal ITC[ ACTIVE ]

30% Residential Clean Energy Credit

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Monthly Electric Bill (USD)

State

Roof (sq ft, optional)

State Solar Tax Credit

Hawaii offers a 35% state income tax credit on residential solar installations, capped at $5,000. The credit applies to panels, inverters, mounting hardware, and labor. It is non-refundable but can typically be carried forward to subsequent tax years if your liability in the install year is too low to absorb the full credit.

The Hawaii state credit stacks with the federal 30% Residential Clean Energy Credit. On a typical $24,000 installation, that combination returns roughly $12,200 in combined credits.

Net Metering in Hawaii

Hawaii requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).

In practice, this means a properly sized Hawaii system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under HI net metering rules include HECO, HELCO, MECO.

Utility Rebate Programs

3 major utilities operate in Hawaii: HECO, HELCO, MECO. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.

Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most Hawaii installers will pull up-to-date rebate data during a site assessment.

Property & Sales Tax Exemptions

Hawaii excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.

Hawaii does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.

How Hawaii Compares to Neighboring States

Compare Hawaii's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.

Frequently Asked Questions

In Hawaii, solar installation averages between $2.50 and $3.50 per watt. A typical 8 kW residential system costs about $24,000 before incentives. After the 30% federal tax credit and the 35% Hawaii state credit (up to $5,000), net cost typically lands between $14,000 and $18,000.

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Stack

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