Hawaii still offers significant incentives for solar, battery, and solar hot water — here's everything available in 2026. For strategies on combining these credits, see our guide to stacking incentives
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On a typical $35,000 solar + battery system, here's how incentives reduce your cost:
*Example is illustrative. Actual credits depend on system configuration, your tax liability, and current program availability. Use our financing calculator for a personalized estimate.
Residential PV: 35% of system cost, $5,000 per system (~5 kW blocks — larger systems may qualify for multiple credits). Read our 2026 tax credit deep dive for filing tips.
Commercial PV: 35% of system cost, up to $500,000 per system — use our commercial calculator to estimate
Solar Hot Water: 35% of system cost, up to $2,250 (residential) / $250,000 (commercial)
How: Claim on your Hawaii state tax return (Form N-342)
Carry forward: Unused credit carries forward to future tax years
Applies to: Battery storage systems >3 kWh (e.g., Tesla Powerwall)
Also applies to: Commercial solar PV (through Dec 2027)
How: Claim on your federal tax return (Form 5695)
Note: Residential solar PV federal credit expired Dec 31, 2025
Upfront: $400 per kW of battery capacity committed
LMI Adder: Additional $400/kW for qualifying low-moderate income households
Monthly credits: From energy dispatched during peak hours
Commitment: 5-year program participation
Full BYOD+ details →
Honolulu County: Solar energy system value excluded from property tax assessment for 25 years
Benefit: Your solar panels increase home value without increasing property taxes
How: File exemption with City & County assessor after installation
Solar Hot Water: Up to $2,750 instant rebate through June 2026. See our eHale rebates guide for details.
How: Deducted from your invoice at install (Clean Energy Ally contractor required — AEH qualifies)
Eligibility: HECO, MECO, HELCO ratepayers (not Kauai/KIUC)
Note: Stacks with the 35% state tax credit; first-come, first-served while funds last
Oahu peak: $0.329/kWh (5-9pm)
Oahu daytime: $0.135/kWh (9am-5pm)
How: Credits on your monthly HECO bill
Rate lock: 7 years, then 3-year renewal periods
Full rate details by island →
Loan term: Up to 20 years
For: Solar PV and solar hot water systems
How: On-bill financing through HECO
Benefit: Low fixed rate, payments on your electric bill
For: Maui County residents
Rate: Zero-interest solar loan
Availability: Limited funds — apply early
How: Apply through Maui County energy office
The 30% federal Investment Tax Credit (ITC) for residential solar PV expired December 31, 2025. This caused a massive installation surge in late 2025 as homeowners rushed to qualify.
The 30% federal credit for residential solar panels is no longer available for systems installed after Dec 31, 2025.
Battery systems over 3 kWh (like Tesla Powerwall) still qualify for the 30% federal credit through 2032.
Businesses can still claim the 30% ITC on commercial solar installations through December 2027.
With $0.40+/kWh electricity rates, solar pays for itself even without the federal credit. Hawaii state incentives remain strong. Use our solar calculator to see your payback timeline.
Quick reference for what credits and incentives apply to each service we offer.
| Service | State Credit | Federal Credit | HECO Programs | Other |
|---|---|---|---|---|
| Solar PV + Battery | 35% up to $5,000 | 30% on battery | SRE Export + BYOD+ | Property tax exemption |
| Solar PV Only | 35% up to $5,000 | Expired | SRE Export | Property tax exemption |
| Battery Only | 35% up to $5,000 | 30% | BYOD+ | — |
| Solar Hot Water | 35% up to $2,250 | N/A | — | Hawaii Energy rebate (up to $2,750) |
| Air Conditioning | — | — | — | 0% financing available |
| Commercial Solar | 35% up to $5,000 | 30% (through 2027) | SRE Export + BYOD+ | Accelerated depreciation |
We design, permit, and install your solar, battery, or hot water system.
We provide all receipts, contracts, and certification documents needed for tax filing.
Claim the Hawaii state credit on Form N-342 with your annual state tax return.
Claim the battery credit on IRS Form 5695 with your annual federal return.
BYOD+ incentives and SRE credits are handled through HECO — we manage the enrollment process.
Important: Tax credits require sufficient tax liability. If your credit exceeds your tax owed, the Hawaii state credit carries forward. Consult your tax advisor for guidance specific to your situation.
Get a free estimate with a complete incentive breakdown for your specific system.