Hawaii ranks #9 in America for savings from installing solar panels on your home

Solar power in Hawaii

Hawaii is a great place to install solar panels as far as pay back times go. Your average 5kW solar PV system has a payback time of about 5 or 6 years.

The reason the solar payback is so quick in Hawaii is due to the fact that Hawaii has the highest electricity prices in the USA.

Solar Power has been going strong in Hawaii in recent years, so much so it has revealed some issues in the State's electricity networks.

You see they were never set up with solar in mind and some work is going to be required to add more renewable energy into the grid.


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Solar power in Hawaii

Hawaii solar power facts


Average cost of a 5kw solar power system in 2019
Price shown before incentives

2 Years 6 Months

Average payback time


Average lifetime savings
Price shown after repayments of capital


levelized cost of solar energy


If you don't get solar
The forecast average utility price over the next 25 years


Annual power production

Cash flow graph based on cash purchase of a 2.68kW system

This 2.68kW system would offset 100% of your energy usage if your typical monthly bill in Hawaii is $150, however your situation may vary so try our solar calculator to get a result tailored to you.

Solar companies in Hawaii that provide pricing through the Solar-Estimate marketplace


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How much do solar panels cost in Hawaii

$3.74 per watt

Cash purchased solar system
Before 30% solar tax credit

$4.29 per watt

Financed solar system
Before 30% solar tax credit

18.3¢ cents/kWh

Av. 15 year term, 2.5% price escalator

What are the pros and cons of buying solar panels for your home in Hawaii

The advantages of installing solar panels in Hawaii is there is both state based incentives and the federal tax credit. Lots of sunshine means a solar pv system in Hawaii is going to produce very well. Some incentives are becoming fully subscribed so best get in while you can.

The disadvantage of installing solar panels for your home in Hawaii is that some incentives have already expired or are fully subscribed, interconnection rules can be an isssue as well so best talk to a local solar pro to see what you might be eligable for. The pros here obviously outweigh the cons by far, if you own a home or busininess in Hawaii you will be kicking yourself in a few years if you didn't install solar panels while these great incentives are still around.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

Best brands of solar panels

To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.

However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so whilst solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.

For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.


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How much electricity will solar panels produce in Hawaii

Solar panels produce different amounts of energy in different locations.

Around the Honolulu area solar panels installed on a south facing 11 degree pitch roof will typically produce:

1,475kWh per year per 1kw of peak DC (direct current) capacity

For more information about how your location, roof direction and roof tilt affects solar power production use the solar panels calculator and enter your zipcode below.


See how much electricity your solar panels could produce

I want to buy a solar panel kit and install it myself

What rebates, solar tax credits and other solar incentives are available in Hawaii

Hawaii State Solar Tax Credit

This is a great incentive for many in Hawaii.

If you owe a bunch of money in State taxes you will be happy to know that your new Solar Power install is a tax write off.

Up to 35% of the value of the system will be applied as a tax credit up to a maximum credit of $5,000.

This combined with the 30% federal tax credit provides an excellent incentive to get a new solar PV system installed.

Hawaii's RPS (Renewable Portfolio Standard)

Hawaii has the most ambitious Renewable Energy Target in the USA, yes folks Hawaii aims to get to 100% renewable energy by 2045.

So utilities operating in the state must source a certain percentage of their electricity from renewable sources in a sliding scale until they hit 100% by 2045. However there is no solar specific carve out.



Net Metering in Hawaii

What net metering, they have got rid of Net Metering and replaced it with 2 systems where the new solar power system owner has to choose between the following:

Customer Grid Supply, is intended only for solar PV installations that are designed to not export any electricity to the grid.

Customers are not compensated for any export of energy.

more info

Customer Self Supply, customers receive a PUC-approved credit for electricity sent to the grid and are billed at the retail rate for electricity they use from the grid.

more info



Cost of Solar Systems in Hawaii

You should be able to buy good quality solar power systems from reputable installers in the range of $3.20 to $3.70 per watt, before incentives and fully installed.

At this sort of price level you are talking about a payback period of 6 years or less and an internal rate of return on investment of around 22%.



Is it better to lease or purchase solar panels in Hawaii?

Hawaii has made various zero down solar lease and solar PPA products popular in Hawaii.

Generally speaking you will make far greater savings over the life of a system if you purchase your solar panels (whether with cash you have available or through a HELOC loan) rather than enter into a third party owned solar lease or Solar PPA agreement.

p>You can use the solar savings calculatorsolar savings calculator to see the difference in the overall savings over the life of a system.

See also:

Pros and Cons of PPA Agreements



Interconnection guidelines for solar in Hawaii

Hawaii has had issues with its electricity grids as more and more solar and wind (intermittent) renewable energy has been installed over the years.

As a consequence interconnection rules have had to be amended several times.

There is a simplified standard interconnection process in place that applies to Solar PV Installs up to 10kW.

There is more info about it in the link but your best source of current info is likely to be your local solar installers.

more info

Hawaii Solar Calculator

Regardless of what you want to know about the economics of installing solar panels for your home or business in Hawaii we have a solar calculator that can show you exactly the information your require.


You can either use our full monthly solar calculator that shows you everything you could possibly want to know or you can use one of our range of smaller calculators for specific solar calculations that focus on providing you only with the specific information you require.



What you can find out about installing solar panels in Hawaii using our full monthly solar calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.


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Going solar in Hawaii

Check out all of the ways energy providers of Hawaii can help you be more energy efficient and save money.

The following programs are available:
Incentive Name Eligibility Type
Residential Renewable Energy Tax Credit Federal Personal Tax Credit
Solar and Wind Energy State Income Tax Credit (Personal) sec 235-21.5 State Personal Tax Credit
Find your local rebates and incentives

Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.