HonoluluSolar Incentives 2026: Rebates, Tax Credits & Net Metering
Honolulu homeowners stack the 30% federal tax credit with the 35% Hawaii state credit and Hawaiian Electric net metering. At 6 peak sun hours a day, a home with a $200/month bill (about 1,429 kWh) needs roughly a 9.9 kW system — 25 panels — and pays back in about 8.2 years.
Solar Incentives Available in Honolulu
Solar incentives in Honolulu come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. Second, Hawaii adds a 35% state income tax credit (up to $5,000) that stacks on top. Third, Hawaiian Electric sets the local rules for crediting the solar power you export.
Hawaii has the highest electricity rates in the US, so even under Customer Self-Supply / Smart Export rules, Honolulu solar-plus-battery pays back fast.
How Much Solar Honolulu Homes Produce
Honolulu gets 6 peak sun hours a day, so each 1 kW of panels produces about 1,752 kWh per year here. A 9.9 kW system — the size that fits a typical $200/month Hawaiian Electric bill — generates roughly 17,345 kWh annually, worth about $2,428 in avoided electricity in year one and more as rates rise.
Hawaiian Electric Net Metering in Honolulu
Hawaiian Electric credits excess solar generation from Honolulu homes under Hawaii's modified net metering (~70–90% of retail). A right-sized system can bring net annual electricity costs close to zero. See full Hawaii net metering rules →
How Much Do Solar Panels Cost in Honolulu?
At Hawaii's 2026 average of $3.85/watt, the 9.9 kW system most Honolulu homes need runs about $38,115 before incentives. The 30% federal credit takes off $11,435, and the Hawaii state credit another $5,000 — landing the net cost near $21,681, with payback around 8.2 years.
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Frequently Asked Questions
See your exact Honolulu solar savings
Enter your Hawaiian Electric bill and we'll apply every Hawaii and federal incentive to your real numbers — system size, net cost, payback, and 25-year savings.