Hawaii Solar Panel Incentives

In addition to the Federal Solar ITC (Investment Tax Credit), many states, counties, municipalities and utilities offer rebates or other incentives for solar energy technologies.

Marshel Sheperd
December 7, 2023

Explore a variety of solar panel incentives in the USA to support your clean energy journey. Simple Flow provides insights into key programs in your state, including Solar Renewable Energy Certificates (SRECs), Net Metering, Property Tax Relief, Federal Tax Credits, Tax Rebates, Low-Interest Loans, and Performance-Based Incentives (PBIs).

Types of Solar Incentives

Understanding What Are Solar Renewable Energy Certificates (SRECs)

Not universally accessible, Solar Renewable Energy Certificates enable you to earn credits for the solar power you generate. Subsequently, you can sell the generated electricity back to the utility company or through a local SREC marketplace.

Explaining What Is Net Metering

Net metering serves as an electricity billing incentive, facilitating the production of your own electricity, either entirely or partially, through renewable sources like solar. Depending on the state’s criteria, you may sell excess energy back to the utility company.

Overview of Property Tax Relief and Exemption

This enticing incentive provides an exemption from property taxes upon the installation of a solar power system. Following the installation, you can apply for a tax exemption to reduce your property taxes.

Insight into What Are Federal Tax Credits for Solar Panels

Another valuable tax incentive comes in the form of credits provided by the government to offset a portion of the installation costs for a solar panel system. Some states may also offer additional solar tax credits.

Understanding What Are Tax Rebates

Tax rebates are a qualified partial refund available from utility companies, local governments, or participating companies. Application for these rebates is possible only after the installation of a solar panel system.

Explaining What Are Low-Interest Solar Loans

Often regarded as one of the most cost-effective methods, low-interest loans provide an affordable way to enter the realm of solar energy. Typically, these loans come with reduced interest rates.

Insight into What Are Performance-Based Incentives (PBIs)

Performance-Based Incentive (PBI) programs reward you with a specified dollar amount for each kilowatt-hour (kWh) of solar energy you generate. However, not all states and utility companies participate in this initiative.

At Simple Flow, our thorough research helps identify the available solar panel incentives in your state. Let’s explore the options that may be accessible to you.

What Federal Incentives are Available in your State:

FEDERAL

Hawaii Federal Solar Tax Credit

The Federal Investment Tax Credit (ITC) is available from the state of Hawaii. In total, residential homeowners can anticipate a 26% credit on the expenses incurred for their solar installation. In 2023, the tax credits will drop significantly to 22%. It’s worth noting that you are only eligible for Tax Credits if you are a homeowner and have purchased their solar panel system outright.

FEDERAL

Hawaii Net Metering

Net metering is offered by the state. These are policies designed to allow homeowners, who produce their own solar electricity, to sell their surplus energy back to the utility company. The sale shows up as a credit on your utility bill. The system is fairly simple. You create and use power when it’s needed, and any excess is automatically credited to you by your utility company. To see the states that have a Net Metering Policy, check out the following from The National Conference Of State Legislatures.

FEDERAL

Hawaii Renewable Portfolio Standards

To promote renewable energy, the state has signed up to the RPS which means that utility companies operating in the region are obliged to generate a predetermined amount of sustainable energy per year. If they don’t, a surcharge is levied on the company. To prevent having to pay these fees the utilities offer inducements to homeowners to install solar panels. The RPS covers all renewable energy sources, not just solar. As such check out your local utility companies and see what RPS incentives they offer to get you up and running with solar energy fast.

STATE

Hawaii State Electric Rates And Bills

Electricity rates and bills are high in this state, which is why it makes it even more worthwhile to invest in solar energy. High electricity rates make an installation cost-effective when compared to traditional methods as you start to become self-sustainable and reduce your energy bills.

STATE

Hawaii Property Tax Exemption

The state of Hawaii provides a compelling incentive for residential homeowners opting to integrate a solar panel system into their homes. Because solar energy will increase the value of your property, the state offers you a tax exemption, so that they only have to pay the pre-installation tax figure on their property as opposed to the tax on the increased valuation.

STATE

Hawaii Performance-Based Incentives (PBI)

Hawaii is enrolled in the Performance-Based Incentive (PBI), providing homeowners with the opportunity to earn income from the solar energy they generate. Solar Renewable Energy Credits (SRECs), known for facilitating Solar Power Performance Payments, serve as excellent incentives to offset the installation expenses of residential solar panel systems.

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