HI incentive guide
Hawaii solar incentives in 2026
Last updated · every HI program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Hawaii right now is 35% state tax credit (capped at $5,000). Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Hawaii this year, there is no federal credit. That is a roughly $9,360 swing on an $31,200 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Hawaii offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | Yes | 35% of system cost, commonly capped at $5,000 for residential |
| Rebate or performance payment | No | — |
| SREC market | No | — |
| Sales tax exemption | No | — |
| Property tax exemption | No | — |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Hawaii solar tax credit
Hawaii offers a residential solar income tax credit: 35% of system cost, commonly capped at $5,000 for residential. On a typical 8 kW install at about $27,200, that is worth roughly $5,000. A credit only helps to the extent you owe HI income tax, so check your liability and any carry-forward rules before treating it as a discount.
Hawaii solar rebates and grants
Hawaii runs no statewide solar rebate or grant program in 2026. Individual utilities and municipalities sometimes do, and those are rarely advertised well — ask your utility directly what they pay toward a residential install.
Hawaii offers a state income tax credit of 35% of system cost (capped, commonly at $5,000 for residential systems) — one of the strongest state credits in the country.
Net metering and export rates in Hawaii
Hawaii ended traditional net metering in 2015. Current options such as Smart Export and the Battery Bonus successor programs favor battery storage and limit or time-restrict grid exports.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Hawaii home at an assumed $0.42/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Hawaii costs roughly $23,200–$31,200 installed before incentives, producing about 12,640 kWh a year and saving around $4,374 in year one — a simple payback near 5–7 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Hawaii solar tax credits worth in 2026?
Hawaii's solar income tax credit is 35% of system cost, commonly capped at $5,000 for residential. On a typical 8 kW system costing about $27,200, that works out to roughly $5,000 — the cap is what binds, not the headline percentage. It is a credit against HI income tax, so you need enough state tax liability to use it.
Does Hawaii have solar rebates?
No. Hawaii has no statewide solar rebate or upfront grant program in 2026. Individual utilities and municipalities occasionally run their own, so it is worth asking your utility directly.
Is there a Hawaii solar property tax exemption?
No. Hawaii does not exempt residential solar from property tax assessment, so a system that increases assessed value can increase your property tax. Assessment practice varies by county — ask your local assessor how they treat rooftop solar.
What solar incentives are available in Hawaii in 2026?
Hawaii offers a state income tax credit of 35% of system cost (capped, commonly at $5,000 for residential systems) — one of the strongest state credits in the country. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Hawaii?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Hawaii have net metering?
Hawaii ended traditional net metering in 2015. Current options such as Smart Export and the Battery Bonus successor programs favor battery storage and limit or time-restrict grid exports. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Hawaii?
Before incentives, a typical 8 kW system in Hawaii runs roughly $23,200–$31,200. A state credit of 35% of system cost, commonly capped at $5,000 for residential comes off that, subject to the cap and your tax liability. See our full Hawaii cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: