Is Solar Worth It in Hawaii in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Hawaii homeowners — without the federal ITC.
Cost Per Watt
$4.20
installed
Electricity Rate
$0.130
per kWh
Payback (No ITC)
19.2 yr
current reality
Payback (With 30% ITC)
13.4 yr
hypothetical
25-Year ROI
30%
return on investment
Incentive Breakdown — Hawaii
Available incentives for a typical 7kW residential solar system in Hawaii
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
$10,290Hawaii offers a state income tax credit of 35% of system cost, capped at $5,000 for residential systems.
SREC Market
Not AvailableHawaii does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: State tax credit worth $10,290; Property tax exemption for solar.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Hawaii
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $4.20/W
- Gross Cost
- $29,400
- Federal ITC
- $0
- Net Cost
- $29,400
- Annual Savings
- $1,535/yr
- Payback Period
- 19.2 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $4.20/W
- Gross Cost
- $29,400
- Federal ITC (30%)
- -$8,820
- Net Cost
- $20,580
- Annual Savings
- $1,535/yr
- Payback Period
- 13.4 years
Impact: Without the federal ITC, Hawaii homeowners face a 5.8-year longer payback period — paying $8,820 more out of pocket.
Net Metering Policy — Hawaii
How Hawaii compensates your excess solar production
Significantly reduced export credits — substantially longer payback. Battery storage highly recommended.
Hawaii ended traditional net metering in 2015. Customers can enroll in Customer Grid-Supply (CGS) or Customer Self-Supply (CSS) programs with reduced export credits.
Cost Per Watt Benchmark — Hawaii
Hawaii Average
$4.20/W
National Average
$3.05/W
Typical 7kW System
$29,400
Hawaii's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Hawaii breaks even in 19.2 years. With the former 30% ITC, payback would drop to 13.4 years.
Without Federal ITC
19.2
years to break even
With Former 30% ITC
13.4
years to break even
Production Details
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