✅ Federal Incentives
30% Investment Tax Credit (ITC) for residential, commercial, agriculture, and nonprofit solar projects
MACRS plus bonus depreciation for commercial, industrial, and farm systems
IRA Direct Pay allows nonprofits and other tax-exempt entities to receive the credit as a direct cash payment
✅ State Incentives
⚡ Hawaii Renewable Energy Technologies Income Tax Credit (RETITC)
Offers a 35% state tax credit for solar PV systems
Capped at $5,000 per system for residential and $500,000 for commercial installations
The system must meet specific capacity and installation standards to qualify
Credit can be carried forward for up to five years
⚡ Property Tax Exemption
Solar equipment is exempt from property tax increases in many counties, though not mandated statewide
Exemptions are typically applied automatically when a system is permitted and installed
⚡ Solar Water Heater Mandate
Hawaii requires solar water heaters on new single-family homes (with limited exceptions), helping drive solar integration into building design
✅ Utility & Local Incentives
⚡ Net Metering (NEM) – Closed
Hawaii's traditional NEM program closed in 2015
Customers are now enrolled in alternative programs:
Customer Self-Supply (CSS): Designed for systems with no export to the grid (typically includes battery storage)
Customer Grid-Supply Plus (CGS+): Allows limited grid export with reduced compensation
Smart Export: Provides export compensation only during non-daylight hours (typically paired with battery storage)
⚡ Battery Bonus Program
Incentivizes solar customers on Oahu and Maui to add battery storage to their systems
Offers upfront incentives and ongoing bill credits based on battery capacity and performance
Capacity for this program is limited and may vary by island
✅ Policy & Standards
⚡ Renewable Portfolio Standard (RPS)
Hawaii has one of the most aggressive RPS targets in the U.S.
Requires 100% renewable electricity by 2045
Interim goals include 40% by 2030 and 70% by 2040
⚡ Interconnection Standards
All new systems must comply with Hawaiian Electric’s interconnection requirements
Battery systems are highly encouraged due to grid constraints
✅ Nonprofit & Commercial Incentives
Nonprofits are eligible for 30% federal IRA Direct Pay
Commercial properties may use the 35% Hawaii tax credit and federal MACRS + bonus depreciation
Solar water heating and battery storage also qualify under both state and federal programs