Hawaii electricity prices are high and having a solar system saves you a lot of money. There are even some programs that make the transition to solar energy less painful for your budget. To learn more, read our article about solar incentives in Hawaii.
The US government wants more people to go solar. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
While Hawaii doesn’t call this initiative net metering, that’s basically what it is – you sell electricity to the grid and get credits for it. The Hawaii residents have two options available:
The Customer Grid Supply Plus tariff is available on a first-come, first-served basis until the aggregate capacity limit for the specific region/utility has been met. Customers will receive a monthly bill credit for energy delivered to the grid based on a credit rate that varies by island.
The Smart Export tariff is for renewable energy systems coupled with energy storage. Customers are expected to use excess energy to charge the battery system during the day and to discharge the stored electricity in the evening. Electricity exported to the grid in the evening, overnight, and early morning hours will receive a bill credit based on an island-specific rate.
In Hawaii, single-family residential property is eligible for a credit of 35% of the actual cost or $5,000, whichever is less. A multi-family residential property can have a credit of 35% of the actual cost or $350 per unit, whichever is less. The cost of a solar battery is also eligible for the credit if installed and placed in service on the same property and in the same taxable year as the PV system. Find more information about the credit on the Hawaii Department of Taxation website.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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