Solar Incentives in Honolulu, HI
Complete guide to solar tax credits, rebates, and incentive programs available to Honolulu homeowners in 2026.
Federal Solar Investment Tax Credit (ITC)
30% of total system cost
Honolulu homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Honolulu, HI.
Hawaii State Solar Incentives for Honolulu Homeowners
Hawaii State Solar Tax Credit
Tax CreditHawaii offers a state income tax credit for solar energy systems installed on residential properties.
Property Tax Exemption
Property TaxSolar energy systems are exempt from property tax increases in Hawaii.
GEM$ Program (Green Energy Money Saver)
LoanOn-bill financing program that allows homeowners to pay for solar through their utility bill with no upfront cost.
Net Metering in Honolulu, HI
Hawaii has transitioned from traditional net metering to Customer Grid Supply and Smart Export programs, which provide credits for excess solar sent to the grid at varying rates.
Solar Renewable Energy Credits (SRECs) in Honolulu
Hawaii does not have a traditional SREC market. The state's 100% renewable energy goal by 2045 drives solar adoption through other mechanisms.
Tax Exemptions in Honolulu
How to Claim Solar Incentives in Honolulu
- Install your solar system: Work with a qualified Honolulu solar installer to design and install your system.
- Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
- Apply for state programs: Contact your Hawaii energy office or local Honolulu utility to apply for available incentives.
- Set up net metering: Contact your utility in Honolulu to set up net metering and start earning credits.
- Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.
Solar Incentives FAQ - Honolulu, HI
Honolulu homeowners can take advantage of the 30% federal solar tax credit, plus 3 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.
The 30% federal tax credit alone can save Honolulu homeowners approximately $6.0k on a typical system. Combined with Hawaii state programs, total savings over 25 years can reach $65k or more.
Hawaii has transitioned from traditional net metering to Customer Grid Supply and Smart Export programs, which provide credits for excess solar sent to the grid at varying rates.
To claim the 30% federal ITC, Honolulu homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.
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