Guide to Hawaii Solar Incentives for Homeowners (2026)

Hawaii Solar Rebates, Tax Benefits, Net Metering & SRECs for Homeowners

Hawaii homeowners have some of the strongest motivations for going solar in the country. Electricity prices are the highest nationwide, air conditioning and dehumidification run year-round, and many residents want greater energy independence due to island grid constraints and outage risks. Solar allows homeowners to reduce reliance on imported fuel–based electricity while stabilizing long-term energy costs.

The average residential electricity rate in Hawaii is 42–45¢ per kWh, ranking Hawaii #1 nationally by a wide margin. Even modest solar systems can produce meaningful savings, making rooftop solar one of the most impactful home energy upgrades available in 2026.

Here's what homeowners need to know about Hawaii solar incentives in 2026.

Hawaii Solar Incentives for Homeowners 

• Property tax exemption: Solar systems are generally excluded from increasing property tax assessments

• State sales tax exemption: No general sales tax in Hawaii, reducing upfront solar costs

• PACE financing options: Available in some counties for solar and storage projects

Hawaii has no general statewide sales tax, which reduces the upfront cost of solar equipment and installation compared with many mainland states. Most counties also provide a property tax exemption for solar energy systems, meaning the added value from solar typically does not raise your annual property tax bill. In areas where it’s available, Property Assessed Clean Energy (PACE) financing lets homeowners spread solar and battery costs over time through property tax installments, lowering barriers to entry.

Utility Solar & Export Credit Programs in Hawaii

Hawaii’s solar compensation landscape has evolved beyond traditional net metering; utilities now use net billing and grid supply programs that credit exported energy at specified utility rates rather than full retail.

Hawaiian Electric Company (HECO) — O‘ahu (including Honolulu)

• Grid Supply and Time-of-Use (TOU) credits: HECO credits exported energy under its grid supply tariff, with values tied to time-varying rates and avoided cost components.

• Export rates vs. retail: Exported solar is credited at a rate tied to HECO’s avoided cost, which is typically lower than the retail rate homeowners pay, emphasizing self-consumption and storage use.

• System size limits: Residential systems generally must be sized to customer load; oversizing beyond historical usage may not increase export credit benefits.

Maui Electric Company (MECO) — Maui, Moloka‘i, Lāna‘i

• MECO uses a similar grid supply and time-varying crediting structure for exported solar electricity.

• Credits are applied based on utility tariff schedules, and system designs emphasize matching generation with household usage to maximize value.

Hawai‘i Electric Light Company (HELCO) — Hawai‘i Island

• HELCO provides grid supply crediting with time-of-use components and export credit structures that reflect island-specific costs.

• As on other islands, storage integration increases the value of residential solar by improving on-site use.

Other Local and Cooperatives

Smaller providers and cooperatives on different islands participate in export crediting and interconnection under rules aligned with Hawaii Public Utilities Commission (HPUC) guidelines. Policies vary by service area; homeowners should verify specific export credit rates, interconnection requirements, and system size limits before finalizing designs.

Net Billing & How Export Credits Work in Hawaii

Net billing replaces traditional net metering in Hawaii:

• Export credits are applied at utility-defined rates tied to avoided cost and time-of-use periods, not full retail value.

• Time-of-Use (TOU) periods: Utilities tend to pay higher export credits during times of higher system demand.

• Annual reconciliation: Export credits are tallied and applied against usage within billing periods.

• System design emphasis: Because export rates are lower than retail, homeowners maximize savings by designing systems to maximize on-site usage (use what you generate when you generate it) and, increasingly, pairing with storage.

Ways Hawaii Homeowners Can Lower Solar Costs in 2026

1. Right-Size Your Solar System

Sizing your array to closely match household usage — rather than oversizing for export — increases the portion of energy you use on-site and reduces reliance on lower export credit rates. This means avoiding a large amount of generation that you would be paid for at avoided cost instead of using it yourself.

2. Pair Solar with Battery Storage

Batteries capture excess solar energy and allow you to use it when the sun isn’t shining or during peak rate periods. With export credits generally lower than full retail, storage helps “time-shift” energy to high-value times, boosting total savings and providing blackout protection.

3. Choose the Best Time-of-Use (TOU) Rate

Many Hawaiian Electric tariff plans include TOU pricing. Selecting a TOU plan that aligns with your solar generation and storage discharge patterns can increase the value of your generation and exported credits.

4. Consider Community Solar Options

Where available, community solar programs on some islands let homeowners subscribe to portions of larger shared arrays and receive credit on their bills, making solar accessible when rooftops are shaded, rented, or unsuitable.

5. Use PACE or Other Financing Tools

In areas with Property Assessed Clean Energy (PACE), you can finance solar and storage with long-term, property-tax-based payments, reducing upfront barriers and spreading cost over time.

6. Take Advantage of Local Utility Incentives

Some utility territories offer periodic incentive add-ons for storage, island grid support, or targeted programs for resilience zones. These are often announced annually or in response to grid integration needs.

Why Use Energy Storage in Hawaii

• Enhanced savings: Batteries help shift excess solar to evenings and high-rate periods.

• Outage protection: Storage provides backup during storms and grid events — important on isolated grid islands.

• Grid value: Stored solar energy dispatched at high-value times improves overall economics.

• Reduced exports: With export credits below retail, storage captures more solar value for on-site usage rather than selling it back at lower rates.

Need Help Navigating Incentives? Reach Out to US Solar Supplier

Georgia homeowners can still save with solar in 2026, but results depend heavily on utility policies and how your system is designed. The best outcomes usually come from right-sizing your array, understanding your utility’s export credit rules, and deciding whether storage is worth it for your home’s outage risk and evening usage.

US Solar Supplier can help you choose materials, design a system optimized for your utility rules, and answer questions on compatibility—whether you’re building a rooftop solar system, adding battery backup, or planning a DIY-friendly setup.

👉 Contact US Solar Supplier for personalized guidance on solar equipment, design services, and homeowner-focused solar planning in Georgia.