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Home solar in Hawaii

Hawaii has the highest power prices in the U.S. (about 47 cents/kWh), so solar plus a battery pays off, but net metering closed in 2015 and the 35% state tax credit gets a $40 million yearly cap from 2027 and ends in 2030.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

47.2¢average home price per kWh (EIA, August 2026)

Strong case for solarVery high power prices make self-use and batteries worth a lot, and the 35% state tax credit is still available in 2026. Exports earn time-of-day rates, not retail, and the tax credit is being capped and phased out.

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Net metering Replaced by a lower credit

Net metering closed to new Hawaiian Electric customers in October 2015. New systems use the Smart DER tariff: a Non-Export rider (use all your own solar, no export pay) or an Export rider that pays time-of-day export credits. On Oahu (2024-2026 rates) exports earn 13.5 cents/kWh 9am-5pm, 18.9 cents overnight and 32.9 cents 5pm-9pm, locked for your first 7 years. Credits true up yearly and leftovers expire. Source

2015-10: net metering closes to new customers
2024-04-01: Smart DER tariff launches
2027 (unverified): next 3-year export rate update

Solar credits (SRECs) No market

Hawaii has no SREC market. Batteries can earn extra credits through Hawaiian Electric's Bring Your Own Device (BYOD) program for exporting during evening peak events. Source

Rebates and incentives

Renewable Energy Technologies Income Tax Credit (RETITC), HRS 235-12.5

35% of system cost, up to a per-system cap ($5,000 for a single-family home, unverified)

Hawaii taxpayers who install solar; systems placed in service in 2026 are covered by Executive Order 26-02

open tax credit Source

Hawaiian Electric BYOD (Bring Your Own Device) Level 1

Exports during BYOD events credited at the higher of your tariff rate or the evening peak export rate

Smart DER Export rider customers with a battery

open performance payment Source

Taxes

Property tax: Partial / county rules: in Honolulu, solar electric and solar water devices are not assessed as real property, so they add no property tax. Other counties not checked.
Sales tax: None: Hawaii's general excise tax (GET) applies to solar sales and installation; no exemption found. Source

Solar laws

Act 24 (SB 3125), RETITC changes (2026). Signed 5-21-2026. Caps total solar tax credits at $40 million a year starting in 2027, adds new eligibility and certification rules, and ends the credit in 2030. Source
Executive Order 26-02 (2026). Issued 6-12-2026. Keeps the 2026 credit outside the $40 million cap for systems placed in service in 2026 if the owner relied on the credit before Act 24 was signed. Source
Solar access, HRS 196-7 (). Bars HOA and deed rules that ban solar energy devices on single-family homes and townhouses; reasonable placement rules allowed.

Community solar

Yes: Hawaii's Community-Based Renewable Energy (CBRE) program lets renters and shaded homes subscribe to shared solar for bill credits.

Timeline

2015-10 Net metering closes to new Hawaiian Electric customers
2024-04-01 Smart DER tariff and BYOD Level 1 launch
2025-12-31 Federal 30% homeowner tax credit (25D) ends
2026-05-21 Act 24 signed: $40 million yearly cap on state solar tax credits, sunset in 2030
2026-06-12 Executive Order 26-02 protects 2026 solar tax credits
2027-01-01 Act 24 cap and new rules apply to tax years after 2026
2030 State solar tax credit ends (exact date unverified)

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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