Solar power in Hawaii
Hawaii is a great place to go solar. The state offers an income tax credit that is equal to 35% of the total cost of a solar system.
Although there is no net metering requirement in the state, the distributed generation tariff offers some compensation for electricity generated by solar systems and also promotes the installation of energy storage systems.
There is potential for major savings on solar systems in Hawaii.
Compare solar quotes from the top solar companies in Hawaii
Hawaii solar power facts
$2.78 watt
Average cost: 5kW solar power system
?2 Years 2 Months
Average payback time
$74,250
Average lifetime savings
?4¢ kWh
Levelized cost of solar energy
81¢ kWh
If you don't get solar
?3,956 kWh
Annual power production
Cash flow graph based on cash purchase of a 2.68kW system
This 2.68kW system would offset 100% of your energy usage if your typical monthly bill in Hawaii is $150, however, your situation may vary so try our solar calculator to get a result tailored to you.
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Solar companies in Hawaii that provide pricing through the SolarEstimate marketplace.
How much can solar panels save you in Hawaii
Average total cost of solar panel installation in Hawaii
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
How much do solar panels cost in Hawaii?
$2.78 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.08 per watt
Financed solar system
Before 26% solar tax credit
$18.3¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Hawaii?
The advantage of installing solar panels in Hawaii is that there is a state-based tax credit and the federal tax credit. Hawaii also receives above-average sun exposure, so a solar system here will produce more than a solar system in other states would. The Aloha State has the highest electricity rates in the country, which makes for a great return on investment of about 6 years.
SolarPowerRocks provides a great breakdown of solar incentives and policy for each state within the US.
The disadvantage of installing solar panels in Hawaii is that there is no net metering offered. However, the state does have a distributed generation tariff that outlines the options utilities must make available for customers who install renewable energy equipment on their property.
Best solar companies in Hawaii
Compare solar quotes from the top solar companies in Hawaii
Best brands of solar panels
To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.
However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so while solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.
For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.
How much electricity will solar panels produce in Hawaii
Solar panels produce different amounts of energy in different locations.
Around the Honolulu area solar panels installed on a south-facing 11-degree pitch roof will typically produce:
1,475kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in Hawaii?
Hawaii’s renewable portfolio standard
Hawaii has one of the most ambitious renewable portfolio standards (RPS) in the United States. By 2045, the state will require all utilities to obtain 100% of their energy from renewable sources. However, the RPS does not have a solar carve out, so there is no specific amount of renewable energy that needs to come from solar.
Hawaii state solar wind energy credit
Not only can you take advantage of the federal tax credit when you go solar in Hawaii, you can also receive a state tax credit for installing a solar system on your property.
The state tax credit is equal to 35% of the actual system cost up to $2,250 for single-family homes. The combination of both tax credits provides an excellent incentive for getting a new solar system installed for your home.
Distributed generation tariffs
In October 2015 Hawaiii eliminated net metering and adopted two alternative tariff options: the customer grid-supply plus tariff and the customer self-supply tariff.
Through the customer grid-supply plus tariff, customers export all energy their solar system produces to the grid. The utility then provides a credit for all kilowatt hours (kWh) of energy exported to the grid at a price that is less than retail value. The price for each credit varies depending on what island the property is located on.
Customers under the self-supply tariff option do not export any power to the grid, however, they can incorporate the use of energy storage so their excess energy can be used later on. All power produced must be used or stored.
Hawaii Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Hawaii, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Hawaii using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Hawaii
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Hawaii or Honolulu ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Hawaii solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Hawaii
Check out all of the ways energy providers of Hawaii can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Solar and Wind Energy State Income Tax Credit (Personal) | State | Personal Tax Credit |
| Hawaiian Electric Companies - Customer Self-Supply | State | Program |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
