Net metering is gone on Oahu. Here is why solar still makes sense

Federal tax credit disclaimer (updated October 30, 2026): The 30% federal Residential Clean Energy Credit is no longer valid for new residential solar or battery installations after December 31, 2025. Any references to that credit or savings based on it below are historical, not a current offer. Separate business or third-party-owned system incentives have different rules. Confirm your eligibility with a qualified tax professional.

If you have put off going solar because you heard net metering ended, you are not alone. It is one of the first questions homeowners ask us, and it is a fair one. For years, net metering was the headline benefit of going solar in Hawaii: you sent power back to the grid, and Hawaiian Electric credited you at the full retail rate. That program is no longer available to new customers.

Here is what the headlines tend to leave out. Oahu still has some of the highest electricity rates in the country, averaging around 40 cents per kilowatt hour, and the sun shines here 240 to 300 days a year. That combination still makes solar one of the strongest financial moves a homeowner can make. With the right system design, the right battery storage, and the right incentives, payback on Oahu still lands between six and eight years, with lifetime savings that can exceed $76,000.

Independent Energy Hawaii has installed over 2,000+ systems and helped customers save more than $10 million in utility costs since net metering closed. The rules changed. The math still works.

What actually changed after net metering

When net metering closed to new applicants, Hawaiian Electric introduced alternative billing programs, most commonly CGS+ and Smart Export. Under these programs, excess power your system sends back to the grid is compensated between roughly $0.15 and $0.28 per kilowatt hour, depending on the program and time of day, a meaningful drop from the old 40 cent retail credit.

That shift changes the strategy. Instead of overbuilding a system to push excess power onto the grid, the goal now is to size your system to match your actual usage and pair it with battery storage so you keep more of what you produce.

Even under the new billing structure, homeowners are consistently seeing 60 to 90 percent reductions in their monthly utility bills. And because Hawaii’s electricity rates are tied to volatile imported fuel costs, locking in your own production is a hedge against future rate hikes you cannot get any other way.

What solar ROI looks like on Oahu today

A typical residential system on Oahu runs around $25,000 before incentives, with payback landing at 6 to 8 years given today’s roughly 40 cent rates.

For Hawaii state incentives, see our state tax credit guide. The federal residential credit is no longer available for new installations after 2025. Evaluate lifetime savings using your actual system cost, available state incentives, and electricity usage.

Why batteries are now the centerpiece, not the add-on

Under old net metering, a battery was optional. Under self-supply billing, it is the piece that makes the rest of the system work as intended.

Solar panels produce the most power in the middle of the day, when most homes are empty and demand is lowest. Without a battery, that surplus either exports at the lower CGS+ or Smart Export rate or goes unused. A solar battery captures that midday surplus and holds it for the evening, when grid rates are highest, instead of buying it back from Hawaiian Electric at peak pricing.

There is also the backup power piece. Storms, outages, and grid disruptions are a real part of island life, and a battery-backed system keeps your home running when the neighborhood goes dark. See our guide to Hawaii power outages for what that looks like in practice.

What battery storage brings to a modern Oahu system:

• Stores daytime solar production for use during expensive evening peak hours
• Keeps critical loads running during outages and storm-related blackouts
• Lets you monitor production and stored energy through a smart home app
• Can be added to an existing panel system without starting over

Getting the most out of solar after net metering

A great system is only as good as how it is maintained. Our SolarServe maintenance program and panel cleaning service cover the upkeep side so your system keeps performing the way it was designed to.

Solar without net metering still delivers

The program changed. The opportunity did not. Oahu’s electricity rates, sunshine, and available incentives still make solar one of the highest-return home improvements available. With the right battery storage and a system designed around your actual usage, you are no longer at the mercy of the grid or the next rate increase.

Whether you are starting fresh or adding storage to an existing system, get a free estimate or contact us to see exactly what your home’s solar potential looks like today.