Hawaii still offers significant incentives for solar, battery, and solar hot water — here's everything available in 2026
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)
Commercial PV: 35% of system cost, up to $500,000 per system
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: Rebates increased through June 2026
Amount: Varies by system type and configuration
How: Applied at time of installation (we handle the paperwork)
Note: These rebates are in addition to the state tax credit
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.
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 (increased) |
| 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.