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.
Key takeaways
- With high electricity bills, sunny and warm Hawaii is a great place to install not only solar water heating systems, but also rooftop PV panels. And many hawaii solar tax credits, tax exemptions and rebates for solar systems and solar water heaters make the idea of using green energy even better.
- Federal Tax Credit (ITC) is a 30% renewable energy technologies income tax credit covering the total cost of the solar system and the work of installers.
- Hawaii state offers Distributed Generation Tariffs, which function similarly to net metering. There are two options: Customer Grid Supply Plus (Monthly electric bill credits for power sent to the grid, rates vary by island, first-come, first-served basis) and Smart Export tariff (For systems with energy storage, credits for evening, overnight, and early morning exports, rates vary by island)
- Hawaiians and residents of Honolulu city can maximize their clean energy savings with Hawaii Energy Tax Credits. These come in two forms: Single-family residential (35% of actual cost or $5,000, whichever is less) and Multi-family residential (35% of actual cost or $350 per unit, whichever is less). Solar battery costs are eligible if installed in the same year as the PV system.
Save 30% of your PV system cost with Federal Solar Tax Credit
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.
Sell excess electricity with Distributed Generation Tariffs
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.
Save an additional $5,000 with Hawaii Energy Tax Credits
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.
Top 10 myths about solar
Let's take a closer look at some of the common stories people tell about solar panels, and find out what's really true. Many people are interested in solar power, but some of these stories can make them unsure. By understanding the facts, you can decide if solar panels are right for your home.
1. Myth: Solar panels only work in places that are always very sunny
It's true that solar panels work best when they get a lot of direct sunlight. However, they don't need the sun to be shining super brightly all the time. Solar panels turn daylight into electricity, not just direct sunshine. This means they can still make power even when it's cloudy, although they won't make as much. Also, modern solar panels are made to work well in many different temperatures. Interestingly, they can even work a little better when it's cool. So, whether you live in a place that's sunny all the time or a place that has a lot of clouds, solar power can still be a good choice.
2. Myth: Putting in solar panels costs way too much money
It might seem like it costs a lot of money to put in solar panels at first. But it's important to think about the money you'll save over a long time. The price of solar panels has gone down a lot in recent years, so they are much more affordable now. Also, there are programs that can help you pay for them. The government might give you money back or let you pay less in taxes. And, solar panels can make your electricity bill much smaller, or even make it go away completely. Over the many years that solar panels last, usually 25 years or more, the money you save can be much more than what you paid to put them in. Also, if your system is connected to the grid, you can sometimes sell extra power back to the electric company, which gives you even more savings.
3. Myth: You have to fix solar panels all the time
Solar panels don't need a lot of fixing. They don't have parts that move, so they don't break down very often. Usually, all you need to do is clean them every once in a while to get rid of dirt or dust that might block the sunlight. In many cases, rain will clean them for you. And, modern solar panels are made to handle bad weather, like hail, snow, and strong winds, so you don't have to worry about them breaking easily.
4. Myth: Solar panels will mess up my roof
If someone who knows what they are doing puts the solar panels on your roof correctly, they won't damage it. Good installers use special ways to put the panels on securely and make sure no water can get in. In some cases, solar panels can even help protect your roof from the weather.
5. Myth: Solar panels don't make enough electricity to be worth it
Solar panels are much better at making electricity now than they used to be. It's true that they can't turn all of the sunlight into electricity, but they can turn a lot of it. And scientists are always working to make them even better. This means that solar power is becoming more and more useful.
6. Myth: If I get solar panels, I won't need the power company anymore
For most people, putting in solar panels means connecting them to the power grid. This lets you use electricity from the power company when your solar panels aren't making enough, like at night or when it's cloudy. And when your solar panels make more power than you need, you can often sell it back to the power company. You would need very expensive batteries to store enough power to completely go off grid.
7. Myth: Putting in solar panels takes forever and is super hard
Putting in solar panels is usually not too hard, especially if you have people who know what they are doing to help you. From getting the papers you need to putting the panels on your roof and connecting them to your house's electricity, it usually only takes a few days. Professional installers take care of all the tricky parts.
8. Myth: Solar panels look ugly
Older solar panels might have looked big and not very nice, but new ones look sleek and good. Many companies make solar panels that blend in well with different styles of houses. You can also put solar panels on the ground if you don't want them on your roof.
9. Myth: If you rent your house, you can't use solar energy
While people who rent usually can't put solar panels on their own roofs, they can still use solar energy through community solar programs. These programs let you pay to use part of a big solar farm, and you get money off your electricity bill.
10. Myth: It's hard to sell your house if you have solar panels
Expanded Truth: Studies have shown that houses with solar panels often sell for more money and faster than houses without them. Solar panels are seen as a good thing to have, and they can make your house more attractive to people who want to buy it.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in Hawaii
SHOP SOLAR PANELSYears 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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