Solar Incentives in Hawaii (2026)

Is solar worth it in Hawaii?

Hawaii has the highest electricity prices in the United States, which makes it the single best state in the country for solar payback. At an average residential rate of about ~41¢/kWh, every kilowatt-hour your panels produce is a kilowatt-hour you don't buy from the utility — and that avoided cost is what drives your payback. Combined with excellent sunshine, a standard 7 kW system in Hawaii generally pays for itself in 4–6 years after the 30% federal credit, then delivers a decade or more of nearly free power.

To see your own number rather than this state average, plug your actual electric bill into the Solar Payback Calculator. If you're weighing how to pay, the Financing Calculator compares cash, loan and lease side by side.

Hawaii solar incentives in 2026

Beyond the federal 30% Residential Clean Energy Credit, which applies everywhere, Hawaii offers:

• Hawaii Renewable Energy Technologies Income Tax Credit (RETITC): 35% of cost, capped at $5,000 per 5 kW system
• Customer Grid-Supply Plus and Smart Export programs for exporting excess power
• Battery bonus programs from Hawaiian Electric for adding storage

State programs change frequently. Always confirm current details and eligibility on the DSIRE database and with a licensed local installer before you sign anything.

Net metering in Hawaii

Hawaii uses Customer Grid-Supply / smart export (no full 1:1). Net metering is the second-biggest factor in your solar economics after your electricity rate, because it determines how much credit you earn for the excess power your panels send back to the grid. Generous, full-retail net metering shortens payback; reduced export rates lengthen it and increase the value of pairing your system with a home battery.