Complete Guide to Solar Energy in Hawaii
Your complete resource for solar energy in Hawaii. Everything you need to know about solar laws, solar costs, solar financing, and solar installation.
Why Hawaii is Perfect for Solar Energy
Highest Electricity Rates in Nation
Hawaii has the highest electricity rates in the United States, averaging 43 cents per kilowatt-hour—more than double the national average. These exceptionally high rates mean solar provides extraordinary savings, with typical homeowners saving $3,000-$5,000 annually and achieving payback periods of just 5-6 years.
Exceptional Solar Resources
Hawaii enjoys 270-300 sunny days per year with an average of 5.5 peak sun hours daily. Located near the equator, the islands receive some of the best solar radiation in the United States year-round, ensuring maximum solar panel efficiency and energy production in all seasons.
Up to 35% Tax Credits
Hawaii offers 35% Hawaii state tax credit (RETITC, capped at $5,000 per system). This makes Hawaii one of the most financially attractive solar markets in America.
100% Renewable Energy Goal
Hawaii is committed to 100% renewable energy by 2045, the most ambitious clean energy goal in the nation. This commitment creates long-term policy stability, ensures continued solar-friendly programs, and positions Hawaii as a leader in renewable energy innovation and adoption.
Quick Solar Facts
Explore Solar Topics
Laws & Regulations
Hawaii state tax credit (35%), Customer Self-Supply program, Smart Export programs, solar access rights, and Honolulu property tax exemption (100% for 25 years).
Residential Solar
Complete guide for Hawaii homeowners, system components, benefits, battery storage requirements, installation requirements, and understanding Hawaiian Electric Company (HECO) interconnection processes.
Costs & Savings
2025 pricing ($2.82-$3.19/watt), cost breakdown, massive savings with nation’s highest electricity rates (43¢/kWh), payback periods, and comprehensive ROI analysis for Hawaii’s market.
Financing Options
Solar loans, leases, PPAs, state energy financing programs, battery rebates ($850/kW from Hawaiian Electric), and available incentive programs for Hawaii residents.
Installation Guide
Choosing installers, permits, contracts, installation process, HECO interconnection requirements, Customer Self-Supply vs. Smart Export program selection, and battery integration.
Solar 101
Basics of solar technology, components, panel types optimized for tropical climate, efficiency ratings, battery storage essentials (often required), and maintenance for Hawaii’s humid conditions.
Community Solar
Shared solar programs, community solar gardens, subscription-based models for renters, and Hawaii’s expanding renewable energy community programs.
Solar Calculator
Estimate your solar savings and system requirements based on Hawaii’s exceptional electricity rates, combined tax credits, abundant sunshine, and program compensation structures.
Quick Solar Savings Calculator
Important 2026 Updates
Federal ITC Expired
The 30% federal Investment Tax Credit expired on December 31, 2025. Only solar systems installed and operational by the end of 2025 qualify for this credit.
HECO Application Surge
Hawaiian Electric is processing increased rooftop solar applications as customers rush to claim expiring federal tax credit. Early application submission recommended to ensure timely approval before December 31, 2025 deadline.
Hawaii Solar Laws & Regulations
Understanding the legal framework that supports solar energy in Hawaii
State Tax Credits
35% Hawaii RETITC (capped at $5,000 per system). Hawaii’s state credit remains one of nation’s most generous solar incentives.
Honolulu Property Tax Exemption
City and County of Honolulu provides 100% property tax exemption for solar and renewable energy systems for 25 years. Solar installations add zero property tax burden while increasing home value.
Solar Access Rights
Hawaii law protects homeowners’ rights to install solar systems. HOAs cannot prohibit solar panels but may impose reasonable restrictions that don’t significantly increase costs (>$1,000) or reduce efficiency (>10%).