Is solar worth it in Hawaii?
For a typical Hawaii home in 2026, solar is worth it: about a 6.7-year payback and $35,912 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 6.7 yrs3.2 kW, paying cash
- Electricity price
- 43.5¢per kWh, U.S. 18.0¢
- Solar production
- 1,545kWh per kW per year
- Exports credited at
- ~31%Net billing (reduced export credit)
The numbers for a typical Hawaii home
| Electricity use | 513 kWh a month (Hawaii average) |
|---|---|
| Best-value system | 3.2 kW, producing 4,944 kWh a year (80% of use) |
| Price | $14,700 at about $4.00/W; $9,700 after state incentives |
| First-year savings | $1,443 |
| Payback | 6.7 years |
| 25-year net | $35,912 (14.7% a year return) |
| Rate increase assumed | 3.2% a year, from Hawaii's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 43.5¢ per kWh over the last 12 months, 142% above the U.S. average (18.0¢).
- Exported solar is typically credited at about 31% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,545 kWh per kW per year (ranked #6 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Hawaii
Net billing (reduced export credit). Hawaiian Electric ended net metering for new customers in 2015. New systems use the Smart DER tariff, which pays time-varying rates for exports: on Oahu about 13.5 cents midday, 18.9 cents overnight and 32.9 cents in the 5-9 pm peak. Because midday exports earn the least, most new systems include batteries. A battery program (BYOD) adds upfront and monthly payments.
Smart DER Export Rider (D&O 40418, launched Apr 1, 2024): Oahu $0.135 day (9am-5pm), $0.189 overnight, $0.329 evening peak; Hawaii Island $0.106/$0.148/$0.231; Maui $0.066/$0.131/$0.182; Lanai and Molokai higher. Rates update every 3 years. Non-export option also available.
- Netting: instantaneous
- Unused credits: Export credits offset energy charges in the month and carry forward; check true-up/expiry terms in Smart DER tariff (minimum bill applies).
- Fixed charges: Minimum bill (~$25 on Oahu) and customer charges apply. Retail rates are the highest in the US (~40+ cents/kWh).
- Last major change: Smart DER and BYOD tariffs effective Apr 1, 2024; BYOD Plus battery program created Aug 2025.
- Pending: Smart DER export rates scheduled for update (~every 3 years; next ~2027).
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Hawaiian Electric (Oahu) | 13.5¢/kWh | Midday 13.5 cents, overnight 18.9, peak 32.9. Batteries capture higher-value periods. |
| Hawaiian Electric (Hawaii Island) | 10.6¢/kWh | Midday 10.6, overnight 14.8, peak 23.1 cents. |
| Hawaiian Electric (Maui) | 6.6¢/kWh | Midday 6.6, overnight 13.1, peak 18.2 cents. |
| Kauai Island Utility Cooperative | Varies by utility | Co-op with its own customer-generation schedules; verify. |
Solar incentives in Hawaii
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Hawaii Renewable Energy Technologies Income Tax Credit (RETITC) | tax credit | 35% of the cost of a solar PV system, capped at $5,000 per single-family residential system (lower caps for multi-family); refundable option at reduced value. Eligibility: Hawaii taxpayers who purchase systems. | active |
| BYOD / BYOD Plus battery program (Hawaiian Electric) | battery incentive | Original BYOD: $100/kW of committed capacity upfront (up to $500; +$500 LMI) plus $5/kW-month for daily 2-hour evening dispatch, 10-year program. BYOD Plus (Aug 2025) adds larger upfront incentives for new batteries, half of capacity reserved for LMI; current amounts not verified. Eligibility: Hawaiian Electric customers with battery storage. | active |
| Hawaii Green Infrastructure Authority GEM$ / Hawaii Green Energy loans | loan program | Financing for solar and storage, emphasizing underserved households. Eligibility: Hawaii residents. | unknown |
What solar costs in Hawaii
A fair cash price is around $4.00 per watt before incentives. For the 3.2 kW system that fits a typical home, expect roughly $10,900 to $15,400; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 104,259
- Share of homes
- 23.1%
- Residential solar capacity
- 710 MW
- Growth over the past year
- +8.2%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Hawaii
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Hawaiian Electric | 276,853 | 43.7¢ | 468 kWh/mo | Worth it |
| Hawaii Electric Light Co | 79,318 | 49.3¢ | 450 kWh/mo | Worth it |
| Maui Electric Co Ltd | 61,877 | 45.2¢ | 502 kWh/mo | Worth it |
| Kauai Island Utility Cooperative | 30,335 | 41.4¢ | 553 kWh/mo | Worth it |
Solar by city in Hawaii
- Honolulu6.9-yr payback · Worth it
- East Honolulu7.1-yr payback · Worth it
- Hilo6.9-yr payback · Worth it
- Pearl City6.9-yr payback · Worth it
- Waipahu6.6-yr payback · Worth it
- Kailua CDP (Honolulu County)6.9-yr payback · Worth it
- Kaneohe6.9-yr payback · Worth it
- Kahului6.4-yr payback · Worth it
- Mililani Town7.1-yr payback · Worth it
- Ewa Gentry6.7-yr payback · Worth it
Protect yourself when buying
- Check the license. Hawaii DCCA Contractors License Board: C-60 Solar Power Systems Contractor (or C-13 Electrical); licensed electrician required for electrical work. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Yes. HRS 196-7 prohibits HOAs and private covenants from banning solar energy devices on single-family homes/townhouses.
- Community solar. Yes - Community-Based Renewable Energy (CBRE) program on Hawaiian Electric islands.
Questions about solar in Hawaii
Is solar worth it in Hawaii in 2026?
For a typical Hawaii home, solar is worth it. A 3.2 kW system costing about $9,700 after state incentives saves about $1,443 in the first year and pays back in about 6.7 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Hawaii?
A reasonable cash price is around $4.00 per watt before incentives, or roughly $10,900 to $15,400 for a 3.2 kW system.
Does Hawaii have net metering?
Hawaiian Electric ended net metering for new customers in 2015. New systems use the Smart DER tariff, which pays time-varying rates for exports: on Oahu about 13.5 cents midday, 18.9 cents overnight and 32.9 cents in the 5-9 pm peak. Because midday exports earn the least, most new systems include batteries. A battery program (BYOD) adds upfront and monthly payments.
Is there a solar tax credit in Hawaii?
The 30% federal credit for homeowners ended for systems installed after 2025. Hawaii offers: Hawaii Renewable Energy Technologies Income Tax Credit (RETITC).
How do I check a solar installer's license in Hawaii?
Hawaii DCCA Contractors License Board: C-60 Solar Power Systems Contractor (or C-13 Electrical); licensed electrician required for electrical work.. Look up any installer with the state's license search at https://pvl.ehawaii.gov/pvlsearch/.
Policy research current as of October 2026; sources include puc.hawaii.gov, cca.hawaii.gov, hawaiianelectric.com. Electricity data: EIA, through July 2026. Found something out of date? Tell us.