Solar Energy Incentives in Hawaii
The Hawaii Global Warming Solutions Act aims to reduce greenhouse gas emissions to 1,990 levels by 2020. To achieve this the state has created a robust set of financial incentives for solar energy, as well as other forms of renewable energy.
Hawaii provides rebates for solar water heating systems and generous tax credits for PV, a $1,000 rebate to those installing a solar water heater, and up to $500,000 in corporate tax incentives for solar PV systems.
Solar energy tax credits in Hawaii
Since 1990, Hawaii has offered tax credits to residents and companies who install a solar energy or wind system. Here are the details:
Solar PV panel systems: 35% of total project costs, or $5,000, whichever is less
Solar thermal (solar hot water) systems: 35% of total project cots for solar, or $2,250, whichever is less.
Hawaii's state tax credit may be used in tandem with the federal renewable tax credit, and this reduces the buyer's federal tax liability.
Hawaii also offers a property tax exemption as well, so your solar home improvements won't subject you to increased tax liability.
Hawaii rebates: solar water heating systems
Using thermal energy to heat water in your home is one of the most cost-effective uses of solar energy technology. Because of this, Hawaii offers a several solar water heat rebate programs for homeowners:
The Hawaii Energy Efficiency Fund is a public fund that provides rebates of $750 for solar water heaters for residential use.
A one-time, $1,000 rebate from the Hawaii Electric Company (HECO) Energy $olutions Program is available to homeowners installing solar heating systems, but the buyer must be a customer of HECO, Maui Electric Company (MECO), or Hawaii Electric Light Company (HELCO). The solar heating system is subject to specific standards, guidelines, and energy requirements.
Kaua'i residents are eligible for an $800 rebate when installing a solar water heating system that meets specific standards. This rebate is available exclusively through the Kaua'i Island Utility Cooperative's Energy Wise Program.
Energy efficiency rebates in Hawaii
Reducing the amount of electricity you consume will improve the overall performance of your solar PV system. Consider buying new energy-efficient appliances along with your solar panels. Several Hawaii utilities and cooperatives (HECO and KIUC for example) offer helpful rebates to customers who purchase energy-efficient washers, dryers, dishwashers, and other major appliances.