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Going Solar in Hawaii

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Incentives to Help You Go Solar in Hawaii

Why are many Hawaii residents joining the solar energy movement? It's no secret that the state enjoys large amounts of sunshine year-round, so it makes perfect sense to generate solar energy from this clean, renewable resource.

The Solar Energy Industries Association ranked Hawaii 14th in the U.S. for solar energy. This ranking is based on a variety of factors, including the number of homes powered (337,477) by the installed solar capacity, the percentage of electricity the state gets from solar (13.12%), and the number of solar jobs (2,484).1 The good news is that prices in the state have fallen 40% over the last five years.1

We've compiled some solar incentive information for residents of Hawaii who want to take advantage of current prices. Installing solar power can provide utility bill savings over time and is a positive step toward protecting the environment.

State and Utility Incentives

  • Hawaii residents who live in single-family homes and have installed solar systems are eligible for a credit of 35% of the actual cost or $5,000, whichever is less.2
  • Hawaii residents of multi-family properties can also claim tax credits of 35% of the actual cost or $350 per unit, whichever is less.2
  • Residents may also be eligible to participate in feed-in tariffs from the Hawaiian Electric Company, which provide production credits at 21.8 cents per kilowatt-hour fed back into the system. This applies to solar systems that are under 20kW in size.3

Net Metering

Net metering enables some solar system owners to feed excess renewable energy from their systems into the local grid, reducing the demand for fossil fuels. In areas where net metering is available, utilities will offer payments, usually in the form of energy credits, to utility customers who sell their excess energy to the grid.

Net metering is not currently available to residents of Hawaii. In 2015, net metering was replaced with grid-supply, self-supply compensation, and time of use tariff options.

A reduced rate of 40% to 75% can be provided to customers for excess generation via the grid-supply option.

Customers can't export any excess generation to the grid but may qualify for an interconnection study via the self-supply option.3

State Tax Incentive

In addition to the utility-based rebate program, homeowners in Hawaii who install solar are exempt for 25 years from property tax increases that result from installing solar panels.4

PACE Financing

PACE (Property Assessed Clean Energy) Financing, a program that involves loaning the cost of an eligible energy upgrade to a homeowner to be repaid over time through property tax bills, is not currently available in Hawaii5 However, a number of programs do exist for Hawaii residents interested in solar energy and other energy efficiency measures.

For a full list of the 56 energy-related regulatory, incentive, rebate, and loan programs in the state, visit the Hawaii page of DSIRE, a service of the NC Clean Energy Technology Center.

Federal Incentives: Act Now to Get the Most Benefit

As a way to promote clean and renewable energy, the federal government has put in place two nationwide solar incentives that are available to Hawaii residents. Homeowners should apply for them shortly after installation is complete. Our experts from LG's Solar Concierge can help you understand these incentives and how to apply.

  • The Federal Solar Tax Credit allows Americans in any state to deduct 26% of the cost of their residential solar installation from their federal taxes, dollar for dollar, through the end of 2020. The ITC then steps down to 22% for projects that begin construction in 2021. After 2021, the residential credit is scheduled to drop to zero, although a commercial and utility credit will remain.6 So lock in your ITC advantage by going solar now!
  • Customers of a public utility can save money at tax time because the money, credits or subsidies they earn are not taxable.7

Discover LG's Solar Concierge for Going Solar in Hawaii

Your geographical location, roof orientation, and electricity rates are major factors that influence the amount of savings solar energy can bring you. LG's Solar Concierge offers you our reliable online tools to find out the system size and annual as well as cumulative savings, right at your fingertips - for free. Additionally, you can use it to connect to our expert energy advisers or LG PRO installers to get the right offers for your home. Choose a trusted global brand that offers high power output, high efficiency, long-term durability and reliability, and panels that produce power during late afternoons when the angle of light is lower (when utilities may charge more for electricity from the grid). Get peace of mind from knowing that we will be here for you now and for the 25 years guaranteed in our product, performance, and labor (up to $450) limited warranty.

When you go solar, ask for the brand you can trust: LG

Access LG Solar Concierge

References

1. "Hawaii Solar" SEIA. Web: https://www.seia.org/state-solar-policy/hawaii-solar. April 29, 2019.

2. "Solar and Wind Energy Credit". DSIRE. n.d. Web: https://programs.dsireusa.org/system/program/detail/50.

3. “Midmarket Solar Policies in the United States - Hawaii” NREL. n.d. Web: https://www.nrel.gov/solar/rps/hi.html.

4. "Renewable Energy technologies, Income tax credit", Government of Hawaii, Web: https://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0235/HRS_0235-0012_0005.htm.

5. "What is PACE? Property Assessed Clean Energy" Show Me PACE. Web: http://www.showmepace.org/. April 29, 2019.

6. "Solar Investment Tax Credit." SEIA. Web: https://www.seia.org/initiatives/solar-investment-tax-credit-itc. April 11, 2019

7. Federal Government of the United States. "Title 26 - Internal Revenue Code". Federal Government of the United States. Federal Government of the United States. p.520. n.d. Web: https://www.govinfo.gov/content/pkg/USCODE-2011-title26/pdf/USCODE-2011-title26-subtitleA-chap1-subchapB-partIII-sec136.pdf.

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