Hawaii - Energy tax credit, solar rebates and incentives

Hawaii Renewable and Solar Energy Incentives

Solar and Wind Energy Credit (Commercial/Residential)

This tax credit enables residences and commercial entities to utilize a 20% credit on installation and equipment costs for wind energy systems and 35% for PV and solar thermal systems.

Solar Panel Installations (PV - electric)

Solar and Wind Energy Credit - Continued

Wind Energy System Credit:

Solar Thermal System Credit:

Unused credit may be transferred over to the next taxable year until completely used up.

Solar Roofs Initiative Loan Program – Honolulu (Residential)

Residents of Oahu are offered zero to low-interest loans that may be put toward the purchase and installation of a solar water heating system.

Solar Roofs Initiative Loan Program – Maui County (Residential)

Hawaii Feed-in Tariff (Residential/Commercial)

The Hawaii Public Utilities Commission established a feed-in tariff that’s administered through the HECO, MECO and HELCO utility companies.

Property Tax Exemption for Alternative Energies – Honolulu (Residential/Commercial)

State and Utility-sponsored Rebate Programs (Residential/Commercial)

Hawaii has several rebate programs administrated by the state and participating utility companies.  The majority of these programs are reserved for energy efficient appliances or solar water heating systems.

Solar water heating loan program – KIUC

Kauai Utility Cooperative has teamed up with Kauai Community Federal Ceredit Union and Kauai County Housing Agency to offer a 0% interest loan for solar water heating systems. Repayments for the customers is on a 60 monthly payback schedule.

Solar water heating rebate program – KIUC

An $800 rebate per solar water heater system is available for homeowners in Kauai.

Energy solutions solar water heater rebate – HECO, MECO, HELCO

Residents that have installed solar water heaters are eligible for a one-time $1,000 rebate if they reside in areas of Maui Electric Company, Hawaiian Electric Company or Hawaii Electric Light Company.

Federal Tax Credit (Residential/Commercial)

Taxpayers and businesses are granted a personal tax credit of 30% of the total expenses, which include installation of residential solar panel installations (PV -electric systems), solar thermal systems, fuel cells and labor expenses.  Wind energy installations and geothermal pumps are also eligible for the tax credit.

Federal Energy Conservation Subsidy Exclusion (Residential)

Energy-Efficient Mortgages (Residential)

With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.

Example: 4KW System – Residential Installation Cost

Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50

- Estimated System Cost: $26,000
- Federal/State Tax Credit: $12,800
- State/Utility Rebate: $0
- Net Cost: $13,200
- Cumulative Lifetime Savings (25 Years): $68,251
- Investment Return: 17.9%

Savings of 44% on the total cost of your solar system through incentives

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Proud Member of:
Solar Energy Industries Association

American Solar Energy Society

American Council on Renewable Energy

American Wind Energy Association

Hawaii Energy Tax Credit
Hawaii Energy Tax Credit
Solar Panels as investment