Solar Incentives in Hawaii (2026)
The 30% federal tax credit for purchased home solar ended Dec 31, 2025. Here's exactly what solar incentives are left in Hawaii in 2026 — and how much they're worth.
| State tax credit | 35% up to $5,000 |
|---|---|
| SREC market | No |
| Net metering | Net billing (below-retail export credit) — see Hawaii net metering → |
| Other incentives | Hawaii's Renewable Energy Technologies Income Tax Credit covers 35% of system cost (capped at $5,000 per system), a major offset alongside the nation's highest electricity rates. |
Incentive details reflect programs active in 2026. Programs change and often have caps or waitlists — always confirm current status on DSIRE and with your installer.
Federal credit status (2026): the 30% residential clean-energy credit (Section 25D) was repealed for systems purchased and placed in service after Dec 31, 2025 — cash and financed buyers can no longer claim it. A leased or PPA system can still access the commercial credit (Section 48E), which its owner can claim through 2027 and may pass on as a lower price. That makes Hawaii's state and utility incentives, not the federal credit, the main lever on your 2026 payback.
How much can you actually save in Hawaii?
A typical 8 kW install in Hawaii costs about $24,800 before incentives. Hawaii's state tax credit (35% up to $5,000) comes straight off that, and net billing (below-retail export credit) plus hawaii's Renewable Energy Technologies Income Tax Credit covers 35% of system cost (capped at $5,000 per system), a major offset alongside the nation's highest electricity rates drive the rest of the payback. With the 30% federal credit gone, that state credit is now the single biggest upfront saving most Hawaii homeowners can claim.
See full solar costs & payback for Hawaii
Solar panel cost in Hawaii →Hawaii solar incentives FAQ
Does Hawaii have a solar tax credit?
Yes. Hawaii offers a state solar tax credit of 35% up to $5,000, claimed on your state income taxes. It's separate from (and, in 2026, no longer stacked with) the expired federal credit.
Does Hawaii have an SREC market?
No. Hawaii does not have an active SREC market, so there are no tradable solar certificates to sell here. Your return comes from net billing (below-retail export credit), any state or utility incentives, and avoided electricity costs.
Can I still get the 30% federal solar tax credit in Hawaii?
Not if you buy the system. The federal residential (25D) credit was repealed for purchases placed in service after Dec 31, 2025. A leased or PPA system can still tap the commercial (48E) credit its owner claims through 2027, which may show up as a lower rate — but you won't file for 30% yourself on a cash or financed purchase.
What incentives are left in Hawaii in 2026?
A 35% up to $5,000 state tax credit, net billing (below-retail export credit), and: Hawaii's Renewable Energy Technologies Income Tax Credit covers 35% of system cost (capped at $5,000 per system), a major offset alongside the nation's highest electricity rates. Always confirm current program status on DSIRE before signing.