Solar Incentives Hawaii Independent Energy Hawaii
Local solar and energy incentives available today
10k+
Panels Installed
$5M+
In Utility Savings
500+
Completed Installations
Why 2026 is Different
2026 marks a major shift in how homeowners access solar incentives. The 30% Residential Federal Tax Credit that applied to homeowner-owned systems expires for systems placed in service after December 31, 2025. This means homeowners can no longer directly claim this credit on their personal tax return for newly installed owned systems.
At Independent Energy Hawaii, we stay ahead of these changes so local homeowners do not miss out on real solar savings. Options like Power Purchase Agreements (PPAs) and prepaid solar PPA structures now create new pathways to benefit from federal incentive value while still enjoying lower-cost, clean solar energy. With these models, incentive value is built into the system structure and reflected through reduced energy rates, predictable pricing, and long-term savings.
Power Purchase Agreements in Hawaii Explained
A Power Purchase Agreement (PPA) allows Hawaii homeowners to install solar with little to no upfront cost while purchasing the electricity the system produces at a fixed, predictable rate. A third-party provider owns, installs, and maintains the solar system, and the homeowner simply pays for the solar energy generated.
PPAs are popular in Hawaii due to high utility rates and strong solar production. Many homeowners choose PPAs to lock in lower energy costs, avoid maintenance responsibilities, and start saving immediately without purchasing equipment. While tax credits and depreciation benefits typically belong to the system owner, PPAs can still provide meaningful monthly savings and long-term price stability.
PPAs are especially attractive for homeowners who want to reduce energy bills, increase energy independence, and go solar without managing ownership, financing, or performance risk.
Saving & Rate Protection
With Hawaii’s high electricity rates, solar helps lock in lower monthly energy costs and reduce exposure to rising utility prices.
Going Green With Solar
Hawaii’s abundant sunshine makes solar a clean, renewable power source that supports a more sustainable island future.
Energy Resilience & Independence
Pairing solar with battery storage allows Hawaii homeowners to maintain power during outages and improve overall energy reliability. Warranties are available.
Equity and Ownership
Solar installations can increase property value and enhance curb appeal, making solar a smart long-term investment in Hawaii.
How we provide Solar PPAs in Hawaii
PPAs allow Hawaii homeowners to go solar in 2026 while still capturing federal incentive value through a prepaid structure.
- System Design and Installation – Independent Energy Hawaii designs and installs a solar system based on your home’s energy usage and roof layout.
- No System Ownership – Independent Energy Hawaii owns and maintains the system. Homeowners do not purchase the equipment.
- Pay for Power, Not Equipment – You pay a fixed rate per kilowatt-hour (kWh) for the solar energy the system produces, typically lower than local utility rates.
- Locked-In Energy Pricing – Your solar rate is set by contract, helping protect you from future electricity price increases in Hawaii.
- Maintenance Included – Monitoring, repairs, and system performance are handled by Independent Energy Hawaii.
- Immediate Savings – You begin saving on your electric bill as soon as the system is activated.
- Optional Buyout or End-of-Term Options – Some PPAs offer the option to purchase the system later or renew the agreement at the end of the term.
Hawaii Local Solar & Renewable Energy Incentives
Hawaii State Tax Credit
Take advantage of Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC), which provides a state income tax credit worth up to 35% of your solar installation cost (capped at certain limits). This credit can be carried forward if it exceeds your tax liability and may be refundable under qualifying conditions.
Property Tax Exemption (Honolulu County)
If you install solar panels or other renewable energy improvements in the City and County of Honolulu, you may qualify for a property tax exemption so the added home value from your solar system won’t increase your annual property taxes.
Net Billing and Export Credits
While traditional net metering is no longer available in Hawaii, many utilities offer Smart Renewable Energy Export programs that provide bill credits for excess solar energy you export to the grid. The credit rates vary by island and can offset future electricity costs.