What Rebates Are Available in Hawaii for Solar Panels?

Hawaii's push towards solar energy is no surprise to anyone who lives here. Electricity prices in the state are among the highest in the country. Hawaii has made several solar rebates available to its citizens to remedy this problem.

Honolulu alone has more solar panels per capita than any other city in the country, with that number growing every year. The rest of the state has made cutting back on its energy dependence a goal by urging citizens to switch to solar energy systems. Despite this, some residents have yet to switch because of solar panel prices.

It's not a secret that solar panels are a significant investment. So big, in fact, that many believe they can't afford it. But don't let the price tag fool you: rebates have made solar panels more affordable than ever before.

In this post, we'll go over the different solar rebates and programs available to Hawaii residents. For each rebate, we'll outline important qualifying information so you'll know right away if you're eligible. If you're finally ready to enjoy solar energy in your home, read on.

The Federal Investment Tax Credit

One of the biggest drivers of solar energy adoption in the United States is the Federal ITC. It applies to anyone who purchases solar energy systems. In total, the credit is worth up to 26% of the system's installation price.

That's a hefty rebate, but if you're interested in claiming the Federal ITC, you should make the purchase as soon as possible. Starting in 2023, the rebate will fall to 23% before expiring in 2024. Of course, there's always a chance it could be renewed (as it was in 2020), but it's better to secure your savings rather than risk losing them.

Hawaii Renewable Energy Technologies Investment Tax Credit

Hawaii is heavily dependent on other states for traditional energy sources like coal. To curb this dependency and lower the overall higher energy costs paid by its residents, Hawaii introduced its own tax credits for those who install solar panels on their homes. Unlike some rebates, it's open to all residents in the state.

The Hawaii RETITC offers a 35% tax rebate on the cost paid to purchase your solar energy system. However, that 35% is capped at $2,500 regardless of the system's overall cost. Still, you can combine it with other rebates to maximize your savings.

Honolulu Solar Property Tax Exemption

One reason why homeowners are hesitant to install solar panels is that they significantly increase the value of their property. While that can ultimately be a good thing if you ever choose to sell your property, it also means you'll pay higher property taxes. As a result, some areas have introduced legislation to make solar installations tax-exempt to counter this.

In 2009, Honolulu passed Bill 58 as an incentive for those living in the city to install solar energy systems on their property. Bill 58 declares that any alternative energy system installed on a homeowner's property is exempt from property tax for twenty-five years. However, unlike the previous rebate, this doesn't have an upper limit.

Bill 58 does not have a set expiration date. However, it only applies to those living in Honolulu. That said, it can apply to multiple installations on your property so long as they produce alternative energy.

Oahu Battery Bonus Program

Batteries allow those with solar panels to store excess energy for later use. As a result, they're ideal in climates that don't get a lot of sunshine or go through lengthy periods of rain. Thankfully, Hawaii receives plenty of sun year-round, and as a result, many opt to go without batteries in their system.

From a practical standpoint, it's a risky choice. While our weather is usually idyllic, that doesn't mean we never experience harsh periods. To maintain energy independence, we recommend that everyone with a solar installation invest in a storage battery.

To add an even greater incentive, Hawaiian Electric introduced the Battery Bonus program to customers in Oahu. The program is part of an initiative to make Hawaii's energy consumption 100% by 2045. While it's too early to tell if the state will reach that goal, the program presents an excellent opportunity to save money regardless.

The program applies to anyone installing a new rooftop solar panel system or who already has one. Eligible customers can choose to have a storage battery added to their system. Hawaiian Electric will pay the customer based on the wattage of the battery they choose.

The program comes with a few restrictions. First, the Public Utilities Commission has set on 50 megawatts on all customers collectively. The program will stop accepting applications after reaching that limit or June 2023, whichever is first.

The payments customers receive depends on when they were accepted into the program:

• Those who receive the first 15 megawatts will receive $850 per kilowatt they opt to store.
• Payment is dropped to $750 per kilowatt for applicants in the next 15 megawatts.
• The remaining applicants will receive $500 per kilowatt.

Oahu residents should apply early to secure a spot. There is no indication that the program will be expanded after its June 2023 ending date. Earlier applicants stand to reap the most benefits.

Let Kapili Roofing & Painting Install Your New Solar Panels

As you can see, everyone living in Hawaii qualifies for at least one rebate or program on this list, and most qualify for more. With so much incentive to use solar panels, what reason do you have not to invest? The only hurdle you face is the actual installation process.

But don't worry. We can take care of that for you.

Kapili Roofing & Painting is happy to bring solar power solutions to residents of Hawaii. By combining decades of experience with the finest products and materials, we can handle all of your roofing needs, including installing a new solar system. Reach out to us today to learn more and get a free estimate.