Hawaii has more than 300+ sunny days per year and some of the top solar incentives in the US. Here are some of the incentives available to Hawaii home and business owners:
Table of Contents
Federal Incentives
Federal Investment Tax Credit (ITC)
Commercial solar energy systems installed in Hawaii can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met.
Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026.
Commercial Depreciation
Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years.
The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:
- Project cost = $800,000
- 30% credit = $240,000
- Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000
A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off.
Hawaii Solar State Tax Credit:
This state-level incentive allows residents and businesses to claim a tax credit equal to 35% of the total cost of their solar installation.
Net Metering:
Net metering in Hawaii is a billing arrangement for solar panel owners that credits them for excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can then be used to offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you not only save money but also contribute to a more sustainable energy future while helping maintain grid stability in Hawaii.
Utility Rebates:
Hawaiian Electric offers a battery bonus program for customers who install a new solar-plus-storage system. The program provides a one-time incentive payment of $250 per kilowatt-hour (kWh) of storage capacity, up to $5,000 for residential customers and $25,000 for commercial customers.
Further information and programs can be found at the Programs.Dsireusa.org
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