Hawaii State Incentives for Commercial Solar Energy Systems

In addition to accelerated depreciation rules and a 30-percent renewable energy tax credit** from the federal government, Hawaii provides a number of programs that can reduce the total installed costs of a commercial solar energy system. Below you'll find a general overview of the state's main solar energy programs.

When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your company's energy needs, we'll work with our Hawaii solar panel installation partners to get you a free site visit and competitive quotes. We're here to provide quality service and to make sure you get a great price on your solar energy system. 

**For solar commercial systems installed in 2009 and 2010, businesses may -- instead of taking the federal tax credit -- receive a solar energy grant equal to 30 percent of installed system costs. The grant option has been made possible by the federal stimulus package that was passed in February 2009. 

Are you a Hawaii homeowner? See our HI residential solar incentive page.  

35% Hawaii solar tax credit

Since 1990, the state of Hawaii has extended energy tax credits to businesses (and individuals) who install a renewable energy system. If the credit in the year of installation exceeds the company's tax liability, credit may be carried forward to subsequent years until exhausted. Here's a quick breakdown of the 35% HI solar tax credit levels:  

• PV systems: 35% of project costs, or $500,000, whichever is less

• Solar thermal (solar hot water) systems: 35% of project cots for solar, or $250,00, whichever is less

For more information and instructions on how to report the tax credit, see the Hawaii Dept of Business, Economic Development & Tourism website. 

Hawaii rebates: solar water heating systems 

Solar water heating systems are generally more affordable than solar PV panel systems, and typically offer a relatively fast payback period and a strong return on investment. Accordingly, a number of solar hot water rebate programs are available across Hawaii:  

• Businesses that  install a solar water heat system can receive a solar rebate from the Hawaii Electric Company (HECO) Energy $olutions Program. To be eligible, the business must be a commercial customer of HECO or its subsidiaries, Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO). The rebate is equal to $125 for each deferred kWh that is coincident with peak demand, plus $0.05/kWh for retrofits or $0.06/kWh for new construction.

• Kaua'i businesses that install solar water heating may have between 50% and 80% of the system's equipment costs covered by the Kaua'i Island Utility Cooperative's Energy Wise Program. 

HI energy efficiency rebates

Taking steps to reduce the amount of electricity your company uses may improve the performance of a solar PV system. Even on their own, such steps can save your company a good amount of money. So if you're thinking about installing some solar panels, you may want to consider buying energy-efficient appliances. As it turns out, a handful of Hawaii utilities -- HECO, MECO, HELCO and KUIC -- offer cash rebates to companies that install energy efficient appliances and other technologies. Often, pairing a solar PV panel system with new, highly efficient appliances can yield a faster payback and stronger return on investment than if the PV system is installed on its own. 

Visit the Database of State Incentives for Renewables & Efficiency website for full details on Hawaii's utility-sponsored efficiency rebate programs.

[Last updated: 5/18/09]   

Hawaii: Commercial Solar Incentives