Are you interested in Hawaii’s solar energy incentives for homeowners? We have all the information you need to know about federal and state energy incentives and how to get the best out of them!

Hawaii’s renewable energy incentives are key benefits that make going green with a solar system on the island more affordable and rewarding. In addition to reducing or completely eradicating your electricity bills, the federal and state of Hawaii solar energy incentives make it easier for homeowners to reach the break-even point of their solar investments faster along with a higher ROI.

Types of Hawaii renewable energy incentives

Here are the various Hawaii solar energy incentives homeowners can easily benefit from:

Federal tax credit

Homeowners in Hawaii who choose to go green with a solar system can benefit from the federal government extended solar tax credit. The federal government has extended the 26% solar investment tax credit (ITC) for two more years. Initially, the ITC was scheduled to reduce from 26% to 22% in 2021. However, as a result of the pandemic, the government has extended it for two more years.

Hawaii renewable energy incentives

This means if you decide to install a solar system on your rooftop, you can take advantage of this incentive which gives you the opportunity to save thousands of dollars.

Hawaii Solar PV Tax Incentives

The Hawaii solar PV tax incentives are one of the island’s renewable energy incentives homeowners can easily make the most of.  When you combine this incentive with the 26% federal tax credit, the return on investment of your solar project will be greatly improved. Considering the high cost of energy in Hawaii and the constant sunlight on the island, installing a solar system on your rooftop is one of the smartest decisions you can make right now.

With these Hawaii renewable energy incentives, you can easily reach your break-even point within 4-7 years. In the next 30 years, you’ll be saving about $200,000 to $500,000. You can learn about how to get pre-approval for solar in Hawaii within the shortest possible time.

How Hawaii’s Solar Tax Credit Works

Having a good knowledge of how Hawaii’s renewable energy incentives work can make it easier for you to get the most out of it.

The income tax credit makes it possible for homeowners to get a credit of up to 35% of the cost of equipment and installation of your solar system. The credit that will be applied in the year you have your solar system placed into service and it’s restricted to $5,000 per 5kw of DC solar.

For example, if you have 12kw of PV placed into service in 2021, you’ll end up with three systems. These will include two 5kw systems and one 2kw system. Also, tax credits that are higher than the taxpayer’s income tax liability can be used as a credit against the taxpayer’s income tax liability in subsequent years they are used up. Even more, you’re offered the option of taking the credit as a refund for a lesser amount.

Contact Pacific Energy for inquiry about Hawaii’s renewable energy incentives and how to go green with a solar PV system.