Does Hawaii Have Community Solar Laws?

Hawaii has been at the forefront of America’s renewable-energy transformation, and community solar plays a crucial role in helping the state achieve its ambitious target of 100% renewable electricity by 2045. For residents who cannot install residential solar panels on their rooftops, Hawaii’s community-based renewable energy (CBRE) program (commonly known as community solar) creates a path to share in clean power production and savings.

The foundation for Hawaii’s community solar framework lies in Act 100 of 2015, which authorized the state’s Public Utilities Commission (PUC) to develop and oversee a statewide program enabling residents, renters, and businesses to subscribe to shared solar installations. These programs are designed to expand solar access beyond traditional rooftop systems and encourage broad participation in renewable-energy generation.

The Community-Based Renewable Energy Program

Act 100 established the legal foundation for Hawaii’s community solar projects. It directed the PUC to design a regulatory structure that allows multiple subscribers to receive proportional credits on their utility bills for energy generated by a shared solar facility. The program was developed under the term “Community-Based Renewable Energy” (CBRE) to include solar and other renewables, but solar remains the most popular choice.

Key features of the CBRE program include:

• Community solar projects may be developed on any island with a regulated electric utility.
• Each community solar energy project must serve at least two subscribers, including residential customers.
• Subscribers receive monthly bill credits for their share of generation, applied by the local utility.
• Total system capacity is capped per island and utility, ensuring balanced distribution of renewable energy resources.

Hawaii’s three main utilities, Hawaiian Electric, Maui Electric, and Hawaiʻi Electric Light (all under Hawaiian Electric Industries), are responsible for administering these programs and integrating them into the state’s power grid.

The Hawaii PUC prioritized equity when structuring the CBRE program. Phase 2 of the program, launched in 2020, introduced significant provisions for low- and moderate-income (LMI) households. Each new community solar project must dedicate a portion of its capacity to LMI subscribers.

To ensure affordability, Hawaii established specialized “LMI-focused community solar projects,” which receive additional incentives and streamlined approval. These projects provide discounted energy credits and require no upfront costs or long-term contracts. They also partner with local non-profits and community organizations to recruit qualified participants.

The state’s Green Energy Money Saver Program (GEM$) and the Hawaii Green Infrastructure Authority (HGIA) also play a vital role by providing financing options that expand access to renewable energy for underserved households, complementing the community solar initiative.

The Hawaii Public Utilities Commission (PUC) oversees all CBRE projects, developer applications, and consumer protections. It ensures that project operators provide transparent information, fair pricing, and accurate monthly crediting to subscribers. The PUC also reviews how developers address low-income participation and community outreach in their proposals, keeping consumer equity at the heart of Hawaii’s community solar expansion.

What Is Community Solar?

Community solar allows multiple homes or businesses to share power from a single solar installation instead of mounting panels on individual rooftops. The electricity generated by the shared array flows into the utility grid, and subscribers receive energy bill credits based on their portion of the system’s output.

This model democratizes access to clean energy. It gives renters, condo owners, and small businesses a way to participate in Hawaii’s renewable transition without navigating complex permitting or roof suitability issues.

Community solar farms are ideal for:

• Renters and condominium residents who cannot install residential solar panels
• Homeowners with shaded or space-restricted roofs
• Businesses seeking predictable electricity costs
• Residents wanting to support local renewable-energy generation without the commitment of ownership.

While residential solar systems offer ownership and tax-credit benefits, community solar projects bring several distinct advantages, :

• No installation required: Subscribers avoid equipment installation, roof modifications, and maintenance costs.
• Low upfront cost: Many Hawaii community solar programs require no upfront payment.
• Flexible participation: Subscribers can move or cancel with little penalty.
• Shared environmental impact: A single solar farm can displace hundreds of tons of carbon emissions yearly.
• Grid support: Community projects strengthen local grid stability by distributing generation across multiple locations.

This shared model fits Hawaii’s unique landscape, where volcanic terrain, dense urban zones, and high housing costs limit rooftop solar adoption.

Why Community Solar?

Hawaii’s embrace of community solar stems from both necessity and opportunity. The islands’ isolated power grids, reliance on imported oil, and aggressive renewable-energy targets create strong incentives to diversify generation and improve access.

Environmental Benefits

Every megawatt of community solar energy replaces oil-fired electricity, reducing pollution and cutting the state’s dependence on imported fossil fuels. Hawaii’s carbon-reduction goals are among the most ambitious in the nation. By subscribing to a community solar project, residents help achieve the state’s 2045 100% clean-energy mandate while protecting fragile island ecosystems.

Financial Benefits for Participants

The benefits of community solar also include financial relief. With electricity rates averaging $0.43 per kilowatt-hour (kWh) (the highest in the U.S.), any opportunity to lower bills is valuable. Community solar subscribers typically save between 10% and 25% on energy costs, depending on the program and island. These savings are immediate, applied as credits to utility bills, and require no system ownership.

For small businesses and commercial tenants, community solar provides price stability and predictable billing, reducing exposure to fluctuating oil prices that drive Hawaiian energy costs.

Expanding Energy Equity

Energy equity is central to Hawaii’s renewable strategy. The CBRE program ensures inclusion by reserving capacity for lower-income residents and offering accessible enrollment terms. Through outreach partnerships with local community groups, the state helps historically underserved communities enjoy the same renewable-energy advantages as property owners.

Are There Community Solar Projects in Hawaii?

Hawaii’s community solar landscape is rapidly expanding across its islands. Since the launch of the CBRE program, dozens of community solar projects have been proposed or completed, representing hundreds of megawatts of shared clean-energy capacity.

Active and Upcoming Projects

As of 2026, Hawaii has over 40 active or approved community solar farms statewide, many concentrated on Oʻahu, Maui, and Hawaiʻi Island. Some of the largest and most impactful include:

• Mililani I and II Solar Projects (Oʻahu): Developed by Clearway Energy Group, these large-scale facilities generate a combined 76 MW of solar power with battery storage and serve both residential and low-income subscribers.
• Mānoa Community Solar Garden (Oʻahu): A mid-sized project focused on local apartment dwellers, operated in partnership with Hawaiian Electric.
• Kauai Community Solar Project: Managed by the Kauai Island Utility Cooperative (KIUC), this project supplies shared solar energy to both residents and businesses, achieving near-net-zero carbon generation on the island.
• Waiawa Solar + Storage Project (Oʻahu): A 36-MW solar farm featuring advanced energy-storage technology, offering community-solar participation opportunities for hundreds of households.
• Maui Central Solar Garden: An initiative under development by local renewable-energy cooperatives to expand solar access beyond rooftop installations.

Together, these projects provide clean power for thousands of Hawaiian families, diversifying the islands’ energy portfolio and improving grid resilience.

Residents can join Hawaii’s community solar projects through the Hawaiian Electric CBRE Portal, which lists active and upcoming projects across each island. The general process includes:

• Choosing a Project: Residents browse available community solar farms and select one within their utility service area.
• Subscription Agreement: Subscribers sign an agreement detailing their allocated energy share and billing terms.
• Bill Credits: Energy generated by the solar farm is credited to their monthly electric bill, reducing total charges.

Participants do not need to own property or install equipment, and subscriptions are transferable if they relocate within the same service territory.

How Does Community Solar Work in Hawaii?

To understand how community solar works in Hawaii, imagine a large shared solar array located in a sunny area of the island. The system connects to the local utility’s grid, sending clean electricity into distribution lines that serve surrounding communities.

Step-by-Step Overview

• Solar Generation: The array’s photovoltaic panels convert sunlight into direct current (DC) electricity.
• Grid Connection: Inverters convert DC to alternating current (AC), which is fed into the utility grid.
• Credit Distribution: The utility tracks production and assigns credits to each subscriber’s account based on their subscribed share.
• Bill Reduction: Credits appear as line items on monthly bills, offsetting utility charges.

The system operates under Hawaii’s CBRE regulations, ensuring subscribers receive fair value for their share of solar generation.

Community solar developers in Hawaii can leverage the following incentives that ultimately reduce consumer pricing:

• Green Energy Market Securitization (GEMS) Loans: Administered by HGIA, these low-interest loans fund renewable-energy projects, including community solar farms.
• Renewable Energy Certificates (RECs): Each megawatt-hour of solar generation earns RECs, which can be traded or sold, further offsetting costs.
• Battery Incentive Programs: Projects with integrated storage receive additional compensation for grid support, improving reliability.

Together, these mechanisms make community solar energy more affordable and stable for residents.

Example: Hawaiian Electric’s CBRE Program

Hawaiian Electric’s Community-Based Renewable Energy initiative is the state’s largest community solar platform. The utility manages developer applications, approves project capacity, and coordinates subscriber billing. Subscribers typically receive one unified bill showing total energy credits and remaining usage costs.

This structure provides a transparent, customer-friendly experience, illustrating how community solar works on the islands while aligning with Hawaii’s sustainability targets.

How Much Does Community Solar Cost in Hawaii?

The community solar pricing model in Hawaii varies by island, developer, and subscription structure. Since energy rates are among the highest in the U.S., community solar offers residents meaningful opportunities to reduce monthly expenses.

As of 2026, the average community solar cost in Hawaii ranges between $0.32 and $0.38 per kWh, compared to the state’s average retail electricity rate of about $0.43 per kWh. This translates to 10–25% monthly savings for most participants.

Some developers offer flat-rate subscription plans pegged to average household energy usage. Below is a cost illustration for typical Hawaiian households:

Costs tend to be slightly higher on outer islands due to smaller project sizes and transmission expenses, but savings remain consistent relative to retail rates.

Subscription fees cover:

• The subscriber’s portion of shared-solar generation
• Maintenance and operation of the community solar project
• Administrative and billing services
• Application of monthly energy credits

Subscribers do not own the solar panels but share in the economic and environmental benefits of local clean-energy generation.

Hawaii’s CBRE Phase 2 dedicates a minimum percentage of total program capacity to low- and moderate-income participants. These subscribers can access:

• Discounted subscription rates guaranteeing at least 20% savings
• Zero-upfront enrollment through HGIA financing
• Flexible contracts that can be canceled without penalty

These programs ensure that lower-income households, renters, and apartment residents (historically excluded from the rooftop solar market) can participate fully in Hawaii’s clean energy economy.