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Discover the Power of Solar Energy in Hawaii!

Welcome to Hawaii, a state renowned for its unparalleled natural beauty, vibrant culture, and now, its leadership in the solar energy movement. Blessed with year-round sunshine and a commitment to sustainability, Hawaii offers an ideal environment for solar power generation. This setting presents a unique opportunity for homeowners and businesses to invest in clean, renewable energy, aligning with the state?s goal to become energy independent and reduce its carbon footprint. With strong incentives designed to ease initial costs and a community deeply passionate about preserving their paradise, Hawaii is at the forefront of a solar-powered future. Learn how leveraging Hawaii?s abundant solar resources can illuminate your home, lower energy bills, and help sustain the pristine environment of these beautiful islands. Join us in capturing the sun?s endless power and stepping into a brighter, more sustainable future in Hawaii.

Solar State Incentives

Hawaii State Solar Incentives

Community Renewable Energy Program
Hawaii's Act 100, approved in 2015, establishes a community-based renewable energy program to enable wider self-generation participation, with detailed phases and tariffs for energy credits and subscriber participation guidelines.
Green Infrastructure Bonds
Hawaii's 2013 law supports clean energy through Green Infrastructure Bonds, aiming for sustainable energy practices and economic resilience.
GreenSun Hawaii
GreenSun Hawaii facilitates financing for clean energy upgrades, offering favorable terms through a loan loss reserve fund.
Energy Efficiency Portfolio Standard
Hawaii's 2009 legislation set an EEPS to separate energy efficiency from its RPS, aiming to reduce electricity use by 2030.
Hawaii Energy
Hawaii Energy, funded by a surcharge on utility bills, supports clean energy programs with a budget tied to utility revenue.
City and County of Honolulu - Real Property Tax Exemption for Alternative Energy Improvements
Honolulu's Bill 58, effective Oct 2009, exempts alternative energy property from taxes for 25 years, excluding fossil and nuclear fuels.
Farm and Aquaculture Alternative Energy Loan
Hawaii's HB 2261 (2008) provides renewable energy loans for farmers and aquaculturists, offering up to 85% project financing.
Solar Water Heating Requirement for New Residential Construction
Since Jan 2010, Hawaii mandates solar water-heating systems in new single-family homes, with specific exceptions and provisions for variances.
Priority Permit Processing for Green Buildings
Hawaii offers priority permit processing for buildings meeting energy and environmental design standards, including LEED silver or equivalent.
Renewables and Efficiency in State Facilities & Operations
HB 2175 mandates renewable energy and efficiency in Hawaii's state facilities and schools, with specific standards and annual reporting to the Legislature.
Interconnection Standards
Hawaii's interconnection rules for small renewables simplify the process, with streamlined procedures and a fast-track option for systems up to 2 MW.
City and County of Honolulu - Solar Loan Program
Honolulu offers zero-interest solar loans to income-eligible homeowners for solar water heating and PV system installations.
Renewable Portfolio Standard
Hawaii's RPS requires utilities to increase renewable energy usage, targeting 100% by 2045, with specific milestones and eligible technologies outlined.
KIUC - Solar Water Heating Rebate Program
Members can apply for a $1,500 rebate or a zero-interest loan to switch to solar water heating through KIUC's partnered contractors and Gather Federal Credit Union.
KIUC - Solar Water Heating Loan Program
KIUC, in partnership with Kauai Gather Federal Credit Union, offers zero-interest loans and a $1,500 rebate for members switching to solar water heating.
Distributed Generation Tariffs
Hawaii PUC offers interim distributed generation tariffs like CGS Plus, Smart Export, and Community-Based Renewable Energy, each with unique benefits and requirements.
Solar Water Heater Rebate
Hawaii Energy offers incentives for energy-efficient solar water heaters, including direct rebates or interest rate buydowns, with additional state and federal tax credits available.
Solar Contractor Licensing
Hawaii offers specialty licenses for solar contractors, requiring exams, experience, and specific qualifications for comprehensive installations, involving electrical and plumbing contractors for certain aspects.
Hawaii Solar Installation Rights
Hawaii law prevents restrictions on solar energy systems in residential areas, requiring homeowners associations to allow them with reasonable rules, also protecting the use of clotheslines.
Solar and Wind Energy Credit (Personal)
The Hawaii Energy Tax Credits offer up to 35% off the cost for solar systems and 20% for wind systems, with specific caps based on property type, enhancing renewable energy adoption.
Solar and Wind Energy Credit (Corporate)
Hawaii's Energy Tax Credits offer substantial savings on solar and wind systems, with varying caps for residential, multi-family, and commercial properties, and include refundable options under specific conditions.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.