Federal Tax Credit

The federal tax credit for installed solar systems is 30% of the total project cost, the credits can be utilized year after year until exhausted for up to 15 years.

Recently the federal tax credit was extended until 2032, this is great news that will help in keeping solar affordable for families in Hawaii and across the entire country.

Learn more here:

IRS.gov

https://www.irs.gov/credits-deductions/residential-clean-energy-credit

Hawaii State Tax Credit

In Hawaii the state tax credit is up to 35% of the system cost. Typically this is $1,000 per kilowatt watt of the size of the solar system.

The State of Hawaii considers each 5KW of solar system size a separate solar system, if you have a 8.5 KW sized system this is accounted for as two systems, you are guaranteed 8,500$ in State Tax rebates, depending on your Income and Tax liability you may be eligible for up to 10,000$ in rebates.

Combined with the Federal credit this can save you up to 65% of the total cost of the system!

The state tax credit can be used against your income liability year after year until exhausted.

You also have the option to take a cash rebate, this is beneficial for customers that are out of state residents or that do not have a Hawaii income tax liability.  

The cash rebate is around 24% less than the tax credit. 

Consult with your CPA to see which option is the most beneficial for your situation and come up with a strategy to best utilize the tax incentives.   

Renewable Energy Technologies Link : http://tax.hawaii.gov/geninfo/renewable/