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Hawaii · HI

Solar Panels in Hawaii:
Is It Worth It in 2026?

Hawaii averages 1441.6 kWh per kWp per year with 6.3 peak sun hours per day. At 39.79¢/kWh, an 8 kW system saves roughly $4,589/year and pays back in about 3.3 years.

💡 Hawaii has the shortest solar payback in the US — as low as 3 years — thanks to 42¢/kWh electricity rates and a 35% state tax credit.

Hawaii Solar at a Glance

Peak sun hours / day6.3 hrs
Avg solar yield1441.6 kWh/kWp/yr
Electricity rate39.79¢ / kWh
Avg payback (8 kW)3.3 years
Annual savings (8 kW)$4,589/yr
Net meteringCustomer Grid-Supply (low export rate)

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Hawaii

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

35% state tax credit (up to $5,000), highest ROI in US due to 42¢/kWh electricity rates

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in Hawaii

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax Exemption — Solar-added home value not taxed
Net Metering — Customer Grid-Supply (low export rate)

How Much Solar Power Do Hawaii Cities Get?

Real PVGIS yield data and EIA electricity rates for all 3 cities. Click any city for detailed payback calculations.

Honolulu
1608.9 kWh/kWp · 3 yr payback
+5.6%
Pearl City
1447.7 kWh/kWp · 3.3 yr payback
Hilo
1268.3 kWh/kWp · 3.7 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for Hawaii.

Calculator
All Hawaii incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Hawaii: Frequently Asked Questions

What is Hawaii's 35% solar tax credit?
Hawaii offers a 35% state income tax credit on solar installations, capped at $5,000 for a single-family home. Combined with the state solar incentives (federal ITC expired Dec 2025), Hawaii homeowners can recover 65% of their solar system cost through tax credits alone — the most generous solar tax incentive package in the US.
Why is solar so valuable in Hawaii?
Hawaii has the highest residential electricity rates in the US, averaging $0.38–$0.45 per kWh — 3–4× the national average. Every kWh of self-consumed solar saves at this premium rate. A typical 8 kW system generating 12,000 kWh/year saves $4,500–$5,400 annually, with a payback period of just 3–4 years.
Do I need a battery with solar in Hawaii?
Not required, but strongly recommended. Hawaii's Customer Grid-Supply (CGS) program pays only ~9¢/kWh for exported solar — much less than the retail rate you save by self-consuming. A battery lets you store excess midday production for evening use, maximizing savings at the retail rate.

Going Solar in Hawaii: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Hawaii. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Hawaii average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 39.79¢/kWh in Hawaii, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Hawaii does not have a statewide solar tax credit, but utility rebates and net metering may still apply. 35% state tax credit (up to $5.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Hawaii typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Hawaii: Hawaii averages 1441.6 kWh/kWp/year with 6.3 peak sun hours/day. Electricity costs 39.79¢/kWh. An 8 kW solar system saves ~$4,589/year and pays back in 3.3 years. 35% state tax credit (up to $5,000), highest ROI in US due to 42¢/kWh electricity rates.