What Solar Incentives Are Actually Available in Hawaii Right Now
Hawaii's State Solar Tax Credit: What It Is and Where Things Stand
The most significant financial incentive for Maui homeowners going solar is Hawaii's Renewable Energy Technologies Income Tax Credit, known as the RETITC. Under Hawaii Revised Statutes §235-12.5, the credit is 35% of your system cost, capped at $5,000 for single-family residential photovoltaic installations. That's a meaningful reduction in your state tax liability — and unlike a deduction, it comes directly off what you owe.
The honest caveat: this area is actively changing. A 2026 state law (Act 24) introduced a statewide annual cap on the RETITC and a 2030 sunset date starting in 2027. A 2026 executive order preserved the prior credit structure for systems placed in service this year, but the policy landscape is still in motion. Before you make any financial decisions based on this credit, confirm the current rules with a Hawaii tax professional and check the Hawaii Department of Taxation's most recent guidance directly. We'll flag this page for review as the situation develops.
Tax and incentive information changes. The details above reflect our best understanding as of publication. Confirm current eligibility and amounts with a qualified tax professional and the Hawaii Department of Taxation before making financial decisions.
The Federal Solar Tax Credit: An Important Update for 2026
For years, the federal Section 25D Residential Clean Energy Credit — commonly called the 30% federal solar tax credit — was one of the most cited reasons to go solar. That credit has been repealed by 2025 federal legislation and no longer applies to systems installed after December 31, 2025.
If you're researching solar right now and you're seeing ads or proposals that still reference a 30% federal credit as a current incentive, that information is outdated. We're not going to build a financial case for your system around a credit that no longer exists. What we will do is give you an accurate picture of what's actually on the table so you can make a decision that holds up.
The IRS has published guidance on this change (IRS Fact Sheet FS-2025-05). If you have questions about how this affects your specific tax situation, a Hawaii tax professional is the right resource.
How Hawaiian Electric Handles Solar Exports Today
Net Energy Metering as most homeowners knew it is no longer available for new solar customers on Maui. Hawaiian Electric's current interconnection framework for new residential solar is the Smart Renewable Energy Export and Non-Export program. Depending on your property and how your system is designed, you may be eligible for the export option — which allows excess energy your system produces to flow back to the grid — or a non-export configuration, which is often paired with battery storage to keep that energy in your home instead.
Rate structures and program terms under the Smart Renewable Energy program are set by the Hawaii Public Utilities Commission and can change. Rather than quote figures here that may be outdated by the time you read them, we'd rather point you to Hawaiian Electric's own program page for current terms and walk you through what makes sense for your specific situation when we talk.
Common Questions About Hawaii Solar Incentives
Does Hawaii still have a solar tax credit in 2026?
Yes, the Hawaii Renewable Energy Technologies Income Tax Credit (RETITC) is still in place for 2026. It's 35% of system cost, capped at $5,000 for single-family residential solar. However, a 2026 state law introduced changes that take effect starting in 2027, so the structure is actively evolving. Confirm current eligibility with a Hawaii tax professional before relying on this credit in your financial planning.Yes, the Hawaii Renewable Energy Technologies Income Tax Credit (RETITC) is still in place for 2026. It's 35% of system cost, capped at $5,000 for single-family residential solar. However, a 2026 state law introduced changes that take effect starting in 2027, so the structure is actively evolving. Confirm current eligibility with a Hawaii tax professional before relying on this credit in your financial planning.Is the federal 30% solar tax credit still available?
No. The federal Section 25D Residential Clean Energy Credit was repealed by 2025 federal legislation and does not apply to systems installed after December 31, 2025. If a solar company is still advertising a 30% federal credit as a current incentive, that information is out of date.No. The federal Section 25D Residential Clean Energy Credit was repealed by 2025 federal legislation and does not apply to systems installed after December 31, 2025. If a solar company is still advertising a 30% federal credit as a current incentive, that information is out of date.Are there incentives specifically for solar battery storage in Hawaii?
Battery storage incentives at the state and utility level do exist in Hawaii, but the specific program terms and amounts are subject to change. We recommend confirming current battery-specific incentive availability directly with the Hawaii Department of Taxation and Hawaiian Electric before your project is finalized. We're happy to walk through what we know when we talk through your system options.Battery storage incentives at the state and utility level do exist in Hawaii, but the specific program terms and amounts are subject to change. We recommend confirming current battery-specific incentive availability directly with the Hawaii Department of Taxation and Hawaiian Electric before your project is finalized. We're happy to walk through what we know when we talk through your system options.What happened to Net Energy Metering in Hawaii?
Hawaii's original Net Energy Metering program is closed to new applicants. New residential solar customers on Maui connect under Hawaiian Electric's Smart Renewable Energy Export or Non-Export program. The right configuration for your home depends on your energy use, your system size, and whether battery storage is part of the plan.Hawaii's original Net Energy Metering program is closed to new applicants. New residential solar customers on Maui connect under Hawaiian Electric's Smart Renewable Energy Export or Non-Export program. The right configuration for your home depends on your energy use, your system size, and whether battery storage is part of the plan.Can I use the GEM$ program to finance solar in Hawaii?
Yes. The Hawaii Green Infrastructure Authority's GEM$ program is an on-bill financing option that lets eligible homeowners finance a solar system through their electric bill rather than a traditional loan. Solar-HI Maui is a listed approved contractor on the GEM$ program. It's one of several financing paths worth understanding — we can walk you through how it compares to other options for your situation.Yes. The Hawaii Green Infrastructure Authority's GEM$ program is an on-bill financing option that lets eligible homeowners finance a solar system through their electric bill rather than a traditional loan. Solar-HI Maui is a listed approved contractor on the GEM$ program. It's one of several financing paths worth understanding — we can walk you through how it compares to other options for your situation.
Putting the Incentives Together: What This Means for a Maui Homeowner
Even without the federal credit, going solar on Maui still makes financial sense for most homeowners — Hawaii has among the highest electricity rates in the country, and a well-designed system can significantly reduce or eliminate your monthly bill. The Hawaii state tax credit, the right interconnection program, and financing options like GEM$ can all work together to bring your upfront cost down and shorten your payback period.
What we'd caution against is making a decision based on an incentive picture that's incomplete or out of date. The numbers matter, and the details matter more. When you talk with us, we'll help you understand what incentives are realistically available for your project right now — not what used to be available — and design a system around your actual energy needs and goals.
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