There are several ways to finance your solar and battery system in Hawaii. Each has different implications for cost, ownership, tax credits, and home value. Here’s what you need to know.
| Factor | Cash Purchase | Solar Loan | Solar Lease | PPA |
|---|---|---|---|---|
| You own the system | Yes | Yes | No — leasing company owns | No — PPA provider owns |
| Upfront cost | Full system price | $0 down available | $0 down | $0 down |
| Monthly payment | None | Fixed loan payment | Fixed lease payment (may escalate) | Per-kWh rate (may escalate) |
| Tax credits go to | You | You | Leasing company | PPA provider |
| BYOD+ incentive | You receive | You receive | May go to leasing company | May go to PPA provider |
| 25-year total cost | Lowest | Low — interest adds some cost | Higher — no equity built | Higher — no equity built |
| Home value impact | +4% avg | +4% avg | Neutral or negative | Neutral or negative |
| Selling your home | System transfers with sale | Pay off loan or transfer | Buyer must assume lease or you buy out | Buyer must assume PPA or you buy out |
| Best for | Maximum ROI | Most homeowners | No tax liability, limited credit | Commercial / nonprofits |
Paying cash delivers the best return on investment. You own the system outright from day one, receive all tax credits and HECO incentives directly, and enjoy the shortest payback period — typically 5–8 years in Hawaii.
Hawaii 35% state credit (up to $5,000), 30% federal battery credit, BYOD+ upfront payment, and property tax exemption all go directly to you.
After the one-time purchase, your electricity cost drops to HECO’s ~$25/month minimum charge. No loan interest, no escalating lease payments.
Owned solar increases Hawaii home values by an average of 4.1%. Buyers prefer homes with owned systems — no lease to assume.
A solar loan lets you own the system with $0 down. Monthly payments are typically less than your current HECO bill, so you save money from day one. All tax credits and incentives go to you, the owner.
We partner with trusted Hawaii lenders to offer flexible financing. Every option includes $0 down and full system ownership from day one.
0% interest and no payments for the first 24 months
Use the 0% intro period to apply your tax credits toward the principal — dramatically reducing your balance before interest starts.
Choose your term: 5, 10, 15, 20, or 25 years
Sungage’s tax credit bridge lets you defer principal payments until your credits arrive — ideal for larger systems.
On-bill financing through HECO — no credit check required
GEMS is administered by the Hawaii Green Infrastructure Authority. The loan transfers with the property, not the person — simplifies home sales.
Rates and terms are subject to change. Contact us for current offers and pre-qualification.
With a solar lease, a financing company owns the system on your roof. You pay a fixed monthly lease payment — typically lower than your current electric bill — for 20–25 years. At the end of the lease, you can purchase the system, renew, or have it removed.
For most Hawaii homeowners with tax liability, owning the system (cash or loan) delivers significantly better long-term value. Over 25 years, the total cost of a lease typically exceeds the cost of purchasing — and you build no equity. If you can claim the tax credits, ownership almost always wins.
AEI’s approach: We help you evaluate whether a lease, loan, or cash purchase is the best fit for your situation. We don’t push one option over another — we run the numbers and show you the comparison. Contact us to discuss your specific circumstances.
A PPA is similar to a lease, but instead of a fixed monthly payment, you pay a per-kilowatt-hour rate for the electricity the system produces. The PPA provider owns and maintains the system.
PPAs are particularly valuable for businesses, nonprofits, government buildings, and schools that cannot directly claim tax credits. The PPA provider claims the credits and passes the savings through as a lower electricity rate. See our commercial solar page for more on commercial PPA structures.
For residential customers, PPAs are less common in Hawaii than direct ownership or loans. However, they can work for homeowners who want solar with no upfront cost and no maintenance responsibility.
This is one of the most important decisions in going solar. Here’s the reality for Hawaii homeowners:
Cash or loan — you build equity
Someone else owns it — you pay monthly
We run the numbers for your specific situation — tax liability, budget, timeline, and goals. No pressure, just clear comparisons.