State solar guide
Hawaii has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (statewide range; Honolulu approximately 5.82 peak sun hours per day; year-round sunshine) | EnergySage May 2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Hawaii ended traditional net metering. New residential solar customers interconnect under the Smart Renewable Energy Export program, which provides time-varying export credits below the retail rate. Oahu (Hawaiian Electric - HECO) example export rates: 18.9 cents per kWh overnight, 13.5 cents per kWh daytime, 32.9 cents per kWh during evening peak. Export credits expire after 12 months and do not apply to fixed utility charges. Battery storage is highly valuable in Hawaii to capture the evening peak credit rate and maximize self-consumption at the full 43 cent retail rate.
Hawaiian Electric (HECO) serves Oahu, Maui County, and the Big Island through subsidiaries. Kauai Island Utility Cooperative (KIUC) has separate interconnection programs. Export credits under Smart Export are substantially above avoided cost but well below the 43 cent retail rate, making self-consumption the primary value driver. Maximizing self-consumption through battery storage is practically standard in Hawaii. Source: Hawaiian Electric Smart Renewable Energy Export program documentation, June 2026.
Program: Smart Renewable Energy Export (formerly Customer Grid-Supply Plus). Last verified: June 2, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Hawaii utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Hawaii homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Hawaiian Electric (HECO) Utility rebate / export credit on hold as of November 2024 - verify current status | See description (as of 2026-06-02) Green Energy Money$aver (GEM$) On-Bill Financing: low-interest financing at 5.5 percent for up to 25 years for eligible residential customers. NOTE: temporarily on hold for new applications as of November 2024; verify current status before relying on this program. | Hawaiian Electric (HECO) customers. Verify eligibility directly with your utility. | Pending | DSIRE (opens in new tab) |
| Hawaii Solar Property Tax Exemption Property tax exemption Confirm exemption filing requirements with your county assessor. | Exemption on solar-added home value (amount varies by local tax rate and system size) The City and County of Honolulu provides a real property tax exemption for alternative energy improvements (solar PV) for 25 years. Estimated savings approximately $125 per year. Other Hawaii counties (Maui, Hawaii County, Kauai) do not have equivalent exemptions as of June 2026. Source: Hawaii Energy Office. | Hawaii residential property owners with qualifying solar installations. | Active | DSIRE (opens in new tab) |
Data last verified June 2, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Hawaii
Battery storage is practically standard on Hawaii solar installations and provides the strongest economic benefit of any US state. Self-consumed solar during evening hours (when the Smart Renewable Energy Export rate is 32.9 cents per kWh on Oahu) is captured at the full 43 cent retail rate with battery storage versus the lower export credit without it. The GEM$ on-bill financing (5.5 percent for up to 25 years) can cover solar plus battery systems for eligible HECO customers; verify current availability with HECO as the program was temporarily on hold as of November 2024. Source: Hawaiian Electric Smart Renewable Energy Export program documentation, June 2026. Verify at your assessment.
Savings example
This example uses real Hawaii market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at approximately 14,200 kWh for a 7 kW system at 5.82 peak sun hours year-round. Assumes 85 percent self-consumption at 43 cents per kWh full retail rate; remaining 15 percent exported at a blended average Smart Export credit rate of approximately 22 cents per kWh (mix of daytime, overnight, and evening peak rates). Hawaii's 43 cent electricity rate dominates: each kWh of self-consumed solar saves 43 cents. Battery storage increases self-consumption and captures evening peak Smart Export credits. Federal residential credit: $0 (expired). RETITC not applied due to SB 3125 uncertainty. Consult a Hawaii tax professional before installation. Figures are illustrative.
Hawaii homeowner savings example (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Hawaii permitting varies by county. Honolulu does not have a statewide fee cap equivalent to California AB 1124. Residential solar permit approval on Oahu through the City and County of Honolulu typically takes 4 to 8 weeks. Hawaiian Electric interconnection review adds additional time. SolarAPP+ adoption in Hawaii is limited. Contract to energization on Oahu typically runs 12 to 20 weeks. Neighbor islands have separate county permitting offices.
Hawaiian Electric interconnection review and program enrollment (Smart Renewable Energy Export) is separate from the building permit and must be completed before energization. Battery storage systems require additional interconnection documentation. Hawaii's high demand for solar means installer queues can extend timelines significantly.
Commercial solar in Hawaii
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Hawaii business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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