Choosing a solar company in Hawaii involves more than comparing panel prices. Homeowners should weigh island-specific utility requirements, battery storage economics, roof and salt-air conditions, warranties, and an installer's experience with local permitting and interconnection queues.
This guide covers how the Hawaii solar market actually works in 2026 — the export programs that replaced net metering, the state's 35% income tax credit, and the questions that separate an experienced island installer from a mainland outfit that just opened a P.O. box in Honolulu.
Figures reflect public utility rates and typical household usage. Last reviewed: August 2026.
Hawaii's solar market at a glance
Hawaii is one of the most mature rooftop solar markets in the country: on Oahu, roughly one in three single-family homes already has rooftop panels. Because the islands generate much of their electricity from imported petroleum, residential rates run roughly three times the national average — commonly in the 40s of cents per kilowatt-hour depending on island.
That combination — very high rates, strong year-round sun, and a legislated goal of 100% renewable electricity by 2045 — means solar in Hawaii is usually less a question of whether it pays off and more a question of which program, which equipment, and which installer.
Why homeowners in Hawaii go solar
The math is straightforward: when grid power costs 40+ cents per kWh, every kilowatt-hour your roof produces is worth far more than it would be in almost any other state. Typical payback periods in Hawaii are among the shortest in the U.S. — often under five years for a well-sized system, and the 30% federal credit plus Hawaii's 35% state credit (capped at $5,000) remove a large share of the upfront cost.
Beyond savings, many households add batteries for resilience. Island grids can't borrow power from neighboring states, so outages from storms or equipment faults are a real consideration — and evening-peak battery programs pay participants for supporting the grid.
Is solar worth it in Hawaii?
For most Hawaii homeowners with a usable roof, yes — Hawaii has the strongest residential solar economics in the United States.
The case rests on three facts: residential electricity commonly costs 40+ cents per kWh (roughly triple the national average), the islands receive strong year-round sun, and the incentive stack — the 30% federal credit plus Hawaii's 35% state credit (capped at $5,000) — removes a large share of upfront cost. Well-sized systems frequently pay back in roughly three to six years, then produce essentially free power for the following two decades of panel life.
The honest caveats: because export credits are worth less than retail power, the strong returns assume you either consume most of your solar directly or add a battery — which raises upfront cost. Heavily shaded roofs, roofs within a few years of replacement, and condo situations without roof rights weaken the case. And homes on windward, cloudier sides of the islands should insist on production estimates built from their microclimate, not an island average.
How much can solar generate and save in Hawaii?
Hawaii's combination of high sun hours and very high rates means each installed kilowatt does more financial work than almost anywhere else. The figures below are directional estimates computed from average island sun exposure and typical residential rates — actual output depends on your roof orientation, shading, microclimate, and equipment.
Note that with export credits below retail rates, the savings shown assume most production is consumed on-site (directly or via a battery). A system that exports heavily will save less per kWh than these figures suggest.
| System size | Est. annual production | Est. annual savings* | Est. 25-year savings* |
|---|---|---|---|
| 4 kW | 6,377 kWh | $2,774 | $69,350 |
| 6 kW | 9,566 kWh | $4,161 | $104,030 |
| 8 kW | 12,755 kWh | $5,548 | $138,711 |
| 10 kW | 15,943 kWh | $6,935 | $173,380 |
*Savings assume the produced electricity offsets purchases at today's average residential rate. These are directional estimates, not quotes.
Estimates assume average Hawaii sun exposure (5.6 peak sun hours/day), a standard system efficiency factor, and the average residential rate of 43.5¢/kWh. Panel output degrades slowly (~0.5%/yr), and utility rates typically rise over time — these effects partially offset in long-run savings. Your roof, shading, and utility program will change these figures.
What makes going solar in Hawaii different
No classic net metering — program choice matters
Hawaii closed its original Net Energy Metering program to new customers back in 2015. New rooftop systems on Hawaiian Electric islands enroll in options like Smart Export or Customer Grid-Supply Plus, which credit exports at set rates and reward battery owners for exporting during evening peak. On Kauai, the member-owned cooperative KIUC runs its own arrangements. Which program your installer recommends — and whether they size the system for self-consumption — changes your economics substantially.
Salt air and trade winds are hard on equipment
Coastal homes face constant salt-laden air that corrodes cheap racking, fasteners, and junction boxes. Experienced Hawaii installers specify marine-grade components and can point to systems that have survived a decade near the shoreline. Ask specifically about corrosion warranties.
Island-by-island utilities and interconnection
Oahu, Maui County, and Hawaii Island are served by Hawaiian Electric under separate rate schedules; Kauai is served by KIUC. Circuit-level saturation can affect approval timelines, and an installer who works your island daily will know which circuits are constrained.
Batteries are close to standard
Because export credits are worth less than retail power, most new Hawaii systems pair panels with storage to shift solar into the evening. Installers here quote solar-plus-battery as the default, not the upgrade.
What solar costs in Hawaii
Installed costs in Hawaii typically run somewhat above mainland averages — roughly in the low-to-mid $3s per watt before incentives for a straightforward roof — reflecting shipping, island labor markets, and corrosion-resistant hardware. A typical 6 kW system might land around $19,000–$21,000 before incentives, less after the 30% federal credit and the state's 35% credit (capped at $5,000 per system).
Batteries add meaningfully to the upfront price but change the savings picture under today's export programs. Your actual project cost depends on system size, roof characteristics, equipment, installation requirements, financing, and available incentives — treat any online figure, including ours, as a starting point for quotes rather than a price.
Solar incentives in Hawaii
Federal Residential Clean Energy Credit
Federal income tax credit worth 30% of the total installed cost of a residential solar (and battery) system.
| Eligibility | Homeowners with sufficient federal tax liability; owned (not leased) systems. |
|---|---|
| Current status | Active |
| Last reviewed | August 2026 |
Verify current program details (IRS — Residential Clean Energy Credit) →
Hawaii Renewable Energy Technologies Income Tax Credit (RETITC)
State income tax credit worth 35% of the installed cost of a residential solar system, capped at $5,000 per system.
| Eligibility | Hawaii taxpayers installing qualifying systems on Hawaii property. |
|---|---|
| Current status | Active |
| Last reviewed | August 2026 |
Verify current program details (Hawaii Department of Taxation) →
Hawaiian Electric battery programs (Battery Bonus successors / BYOD)
Incentives for adding a home battery and sharing stored energy with the grid during evening peak hours. Program names, capacity, and payments vary by island and change over time.
| Eligibility | Hawaiian Electric customers on participating islands with qualifying batteries. |
|---|---|
| Current status | Varies by island — verify current program |
| Last reviewed | August 2026 |
Verify current program details (Hawaiian Electric — Products & Services) →
Green Energy Money $aver (GEM$) On-Bill Program
On-bill financing that lets income-qualified households and renters go solar with no money down, repaying through their utility bill.
| Eligibility | Income-qualified Hawaiian Electric customers, including some renters. |
|---|---|
| Current status | Active |
| Last reviewed | August 2026 |
Verify current program details (Hawaii Green Infrastructure Authority) →
Utility considerations
- Hawaiian Electric serves Oahu, Maui County (Maui, Molokai, Lanai), and Hawaii Island under separate rate schedules; Kauai is served by the member-owned Kauai Island Utility Cooperative (KIUC).
- New rooftop solar on Hawaiian Electric islands typically enrolls in Smart Export (battery required; exports credited primarily in evening/overnight windows) or Customer Grid-Supply Plus (daytime exports credited at fixed rates, with utility curtailment controls).
- Interconnection approval can depend on how saturated your local circuit is — a good installer checks this before quoting a timeline.
Battery storage in Hawaii
Hawaii is effectively a solar-plus-storage market. Because exports are credited below retail rates, storing your afternoon production and using it after sunset beats selling it back in most cases. Batteries also provide backup during outages — a bigger consideration on an island grid than on the interconnected mainland.
When comparing quotes, look at usable battery capacity (kWh), continuous power rating (kW), what circuits are backed up, warranty throughput, and whether the installer enrolls you in a utility battery program and passes through its payments.
How to choose a solar installer in Hawaii
- Verify a Hawaii contractor license (C-60 solar or appropriate electrical classifications) and ask for the license number — you can check it against the state's professional licensing database.
- Prioritize installers with a track record on your island. Permitting offices, utility processes, and circuit constraints differ between Honolulu, Maui, Hawaii, and Kauai counties.
- Ask how many systems they've interconnected under the current export programs — not under the old net metering rules.
- Insist on corrosion-rated racking and hardware if you live within a mile or two of the coast, and get the corrosion warranty in writing.
- Compare workmanship warranties (10+ years is common among established local firms) separately from panel and inverter manufacturer warranties.
Learn how we evaluate solar information →
Installer evaluation checklist
- Licensing
- Experience
- Local Knowledge
- Equipment
- Workmanship Warranty
- Manufacturer Warranty
- Financing
- Permitting
- Utility Experience
- Customer Support
- Installation Timeline
- Proposal Transparency
Questions to ask before you sign
- Which export program are you proposing for my home — Smart Export or Customer Grid-Supply Plus — and why?
- How did you model my savings: what export credit rate, what self-consumption share, and what rate escalation did you assume?
- What is the current interconnection timeline on my circuit?
- What racking and fastener ratings do you use for salt-air exposure, and what does the corrosion warranty cover?
- Who handles the county permit and the utility application — you or me?
- If my roof needs work in year 10, what do you charge to detach and reset the array?
The installation process in Hawaii
- Site and usage review. An installer reviews 12 months of utility bills, your roof orientation and condition, and your island's current export program options.
- Design and proposal. System size, battery sizing, program enrollment, and projected savings — insist the assumptions are written down.
- Permits and utility application. County building/electrical permits plus the Hawaiian Electric or KIUC interconnection application. Timelines vary by county and circuit.
- Installation. Typically one to three days on-site for a residential system with battery.
- Inspection and permission to operate. County inspection, then the utility's permission to operate (PTO). Your export program billing starts here.
Local considerations across the islands
Sun exposure varies more across a single Hawaiian island than across entire mainland states. Leeward sides (Ewa Beach, Waianae, Kihei, Kailua-Kona) are among the sunniest residential areas in the country, while windward and upland communities (Hilo, Kaneohe, Volcano) see substantially more cloud cover — system sizing should reflect your microclimate, not an island average.
Roofing matters too: many island homes have corrugated metal or asphalt shingle roofs that panel mounts handle well, but older cedar shake or clay tile roofs need specialized mounting experience. If your roof is within five years of replacement, replace it first.
Frequently asked questions
Is net metering still available in Hawaii?
No — Hawaii's original Net Energy Metering program closed to new applicants in 2015. New systems on Hawaiian Electric islands enroll in successor programs such as Smart Export or Customer Grid-Supply Plus, which credit exported energy at set rates rather than full retail. This is why most new Hawaii systems include a battery: using your own stored solar in the evening is worth more than exporting it. On Kauai, KIUC operates its own export arrangements for members.
How fast does solar pay for itself in Hawaii?
Faster than almost anywhere in the U.S. With residential rates commonly in the 40s of cents per kWh and strong year-round sun, well-sized systems frequently pay back in roughly three to six years after the federal and state credits — though your result depends on your island, your export program, whether you add storage, and how much of your solar you consume directly. Ask each installer to show the payback math with their assumptions written out.
Do I need a battery to go solar in Hawaii?
Not strictly — Customer Grid-Supply Plus allows solar-only systems on Hawaiian Electric grids — but batteries are close to standard in new Hawaii installations. Export credits are worth less than retail power, so storing afternoon production for evening use improves the economics, and programs that compensate battery owners for evening grid support can add further value. Batteries also provide outage backup, which carries extra weight on an island grid.
Does Hawaii really have a 35% state solar tax credit?
Yes. The Renewable Energy Technologies Income Tax Credit provides a state income tax credit of 35% of the system cost, capped at $5,000 per system for residential installations. It stacks with the 30% federal Residential Clean Energy Credit. Both are tax credits rather than rebates — you need sufficient tax liability to use them, so confirm the details with a tax professional.
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How we research this page
This guide is compiled from official program administrators, utility tariff information, and public data, and is reviewed periodically (last reviewed: August 2026). Being mentioned on this website does not automatically mean a company or program is the best option for every homeowner. Read our full methodology.
Sources & references
- Hawaiian Electric — Rates, export programs, battery programs
- Kauai Island Utility Cooperative — Kauai rates and solar programs
- Hawaii Department of Taxation — State renewable energy tax credit
- Hawaii State Energy Office — State energy policy and programs
- IRS — Federal Residential Clean Energy Credit
- U.S. EIA — Hawaii profile — Electricity rates and generation mix