Solar Panels in Hawaii (HI)
Last updated: February 24, 2026
Everything you need to know about going solar in Hawaii (HI) — costs, savings, incentives, and the best equipment for your climate.
Federal Residential Solar Tax Credit Repealed
The 30% residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit. Commercial projects retain the 30% ITC under Section 48/48E. Hawaii state incentives remain available.
Sun Hours/Day
5.3 hrs
Excellent Solar Irradiance
8 kW System Cost
$24,000
$3.00/watt installed
Federal Residential ITC
Repealed
Section 25D (early 2026)
Annual Savings
$2,012
15,476 kWh/year
Payback Period
11.9 yrs
then free electricity for 15-20+ yrs
Solar Irradiance in Hawaii (2026)
Hawaii receives an average of 5.3 peak sun hours per day annually, equivalent to roughly 1935 kWh/m² per year of global horizontal irradiance (GHI). Summer peaks reach about 6.9 h/day, while winter lows drop to around 3.2 h/day.
This places Hawaii in the excellent solar irradiance band compared with other US states. At 5.3 kWh/m²/day, each 1 kW of rooftop solar in Hawaii generates approximately 1,509 kWh/year (assuming 78% system performance after inverter, soiling, and temperature losses), which makes an 8 kW system produce around 15,476 kWh per year.
Data source: NREL National Solar Radiation Database (NSRDB), 1998-2020 typical meteorological year averages. Hawaii (HI) values reflect the statewide average; coastal, mountain, and desert microclimates can vary by ±15% from this figure.
Hawaii Solar Incentives (2026)
Federal residential tax credit was repealed in early 2026. Hawaii continues to offer the following state and utility-level programs:
| Incentive | Value | Eligibility | Deadline | Source |
|---|---|---|---|---|
| Federal Section 25D ITC | 0% (Repealed Q1 2026) | N/A | Was 12/31/2025 | IRS |
| State Solar Tax Credit 35% (cap $5000) | 35% credit, max $5,000 residential | HI taxpayer; system installed in HI | Ongoing | HI DOTAX |
| Customer Grid Supply Plus | — | — | Verify with state agency | DSIRE |
| Battery Bonus program | $850/kW upfront | Oahu HECO customers | Until 50 MW reached | HECO |
⚠ Always verify state incentive deadlines, caps, and eligibility before signing a solar contract — programs change annually and many have annual funding caps that exhaust mid-year.
Major utility companies in Hawaii
Check your utility's net metering policy, interconnection requirements, and rate structure before installing — rules vary significantly within Hawaii:
- • Hawaiian Electric (HECO)
- • Maui Electric
- • Hawaii Electric Light
- • KIUC (Kauai)
Each utility has different rate structures, net metering caps, and time-of-use schedules. Visit your utility's website for current solar interconnection requirements and queue times.
Net metering in Hawaii
Status: Customer Grid Supply Plus / Smart Export (NEM closed 2015)
Export rate: ~$0.10-0.14/kWh credit (varies by program/island)
System size cap: 100 kW residential
⚠ NEM rules can be amended by state public utility commissions and individual utilities — verify with your utility before committing. Caps and rates shown reflect the most common residential tariff as of 2026.
Solar Incentives in Hawaii
Federal Residential ITC (Section 25D) -- Repealed
The 30% federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal may still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E.
State Incentives Available
Hawaii offers state-level solar incentives that remain available despite the federal ITC repeal. Check with your local utility and the DSIRE database for current programs.
Top 3 Recommended Solar Panels for Hawaii
With 5.3 peak sun hours/day and high temperatures, Hawaii homeowners need panels with excellent temperature coefficients to minimize heat losses:
| Panel | Wattage | Efficiency | Temp Coeff | Warranty |
|---|---|---|---|---|
| REC Alpha Pure-RX 470W | 470W | 22.6% | -0.24%/°C | 25/25 yr |
| REC Alpha Pure R 430W | 430W | 22.3% | -0.26%/°C | 25/30 yr |
| Meyer Burger White 400W | 400W | 21.7% | -0.26%/°C | 25/30 yr |
Top 3 Recommended Batteries for Hawaii
Pairing solar with battery storage provides backup power during outages and can optimize savings with time-of-use rates:
| Battery | Capacity | Power | Chemistry | Warranty |
|---|---|---|---|---|
| HomeGrid Stack'd Series 38.4kWh | 38.4 kWh | 34.4 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| HomeGrid Stack'd Series 28.8kWh | 28.8 kWh | 25.8 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| BYD Battery-Box Premium HVM 22.1 | 22.08 kWh | 22.08 kW | LFP (Lithium Iron Phosphate) | 10 yr |
Frequently Asked Questions
How much do solar panels cost in Hawaii in 2026?
The average cost of an 8 kW solar system in Hawaii is approximately $24,000 ($3.00/watt installed). Note: The federal residential solar tax credit (Section 25D) was repealed in early 2026, so the full system cost applies unless state incentives are available. State-level incentives may reduce your out-of-pocket cost. Get 3-5 quotes from local installers for accurate pricing.
Is the federal solar tax credit available in Hawaii?
The federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E. Hawaii still offers state-level incentives that can reduce your solar costs. Consult a tax professional for the latest guidance.
How does Hawaii's climate affect solar panel efficiency?
Hawaii receives 5.3 peak sun hours/day, which is excellent for solar production. However, high temperatures can reduce panel efficiency. Choose panels with strong temperature coefficients (closer to 0%/°C) to minimize heat-related losses. An 8 kW system in Hawaii can produce approximately 2,012 in annual savings.
How much can I save with solar in Hawaii?
An 8 kW solar system in Hawaii produces approximately 15,476 kWh/year, saving about $2,012 annually. The estimated payback period is 11.9 years. Over 25 years, total savings can reach $50,300.
Does Hawaii have net metering?
Net metering policies vary by utility in Hawaii. Most states offer some form of net metering or net billing that credits solar homeowners for excess electricity sent back to the grid. Contact your local utility or check the DSIRE database for current Hawaii net metering policies.
What is the best solar panel for Hawaii?
For Hawaii's high-sun climate (5.3 hours/day), panels with excellent temperature coefficients perform best since they lose less power in heat. Look for HJT or high-quality TOPCon panels with temp coefficients closer to 0%/°C.
What is the payback period for solar in Hawaii?
The estimated payback period for an 8 kW solar system in Hawaii is 11.9 years. This is calculated as: system cost ($24,000) divided by annual savings ($2,012/year). After payback, solar generates essentially free electricity for 15-20+ more years. State incentives may shorten this further.
Do I need a battery for solar in Hawaii?
A battery is not required for grid-tied solar in Hawaii, but it provides backup power during outages and can increase savings with time-of-use rate optimization. Hawaii's incentive programs may include battery storage rebates.
Does Hawaii have solar incentives?
Yes, Hawaii offers state-level solar incentives. These may include state tax credits, rebates, property tax exemptions, sales tax exemptions, or SRECs. The federal residential ITC (Section 25D) was repealed in early 2026. Check the DSIRE database for current programs.
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