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Key Points
Hawaii is a sunny state with an ideal solar market to make the costs of solar worthwhile.
Federal, state, and local solar incentives offset your out-of-pocket solar installation costs in Hawaii.
SaveOnEnergy can help you estimate your potential solar savings and find a solar company to meet your preferences and budget.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
Solar power in Hawaii
Hawaii’s electricity rates are the second highest in the nation. Going solar can help Hawaii residents save money on energy bills and live a more eco-friendly lifestyle. Although switching to solar energy in Hawaii is expensive, you can save thousands on energy bills over time.
Investments in solar energy in Hawaii are increasing. According to the Solar Energy Industries Association (SEIA), the state has invested $4.4 billion in its solar energy industry and plans to install 904 megawatts (MW) of solar over the next five years, increasing its capacity by 50%.
Learn more about the benefits, costs, and other factors to consider before making the switch to solar panels in Hawaii.
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You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
Hawaii solar panel costs
Adding solar panels to your home can help you save money, especially with the rising cost of energy. By installing solar panels for your home, you can produce your own power instead of relying completely on the electric grid.
According to the Lawrence Berkeley National Laboratory, the average cost of a residential solar system in the U.S. is about $3.67 per watt. The typical U.S. household needs an 8.6 kilowatt (kW) system, which brings the total cost to $31,558 before rebates and tax incentives.
Since solar panel installations are customizable, your total cost will vary depending on how many solar panels your home needs, your typical electricity consumption, and the type of panels you choose. Costs will also include installation, solar permitting, and inspection fees. The following table shows a range of prices for different solar system sizes at $3.67 per watt before tax credits and incentives.
System size
Total cost
Number of
solar panels*
7 kW
$25,690
18–23
9 kW
$33,030
23–30
11 kW
$40,370
28–37
13 kW
$47,710
33–43
15 kW
$55,050
38–50
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Cost factors of solar panels in Hawaii
The total price of installing solar panels in Hawaii involves two main types of costs: hard and soft costs. Hard costs refer to the physical equipment required, such as panels and batteries. Soft costs include factors like company profits, sales, marketing, installation, and permitting fees. The following table explains the key factors that make up solar costs.
Number of panels
The size of your solar panel system impacts the overall cost. A larger system size usually results in a higher price. If your goal is to cover your home’s entire energy usage, you will need more solar panels than if you choose to cover a portion of your usage.
Components
Solar panels, inverters, and solar batteries are the components that make up the hardware costs. Higher-efficiency solar panels are generally more expensive but offer benefits like a longer lifespan. While not essential for your solar system, solar batteries might be a worthwhile expense for areas prone to power outages or if you have a time-of-use energy plan.
Home improvement
Consider the condition of your roof and electrical costs when determining your budget. Roof repairs must occur before installation and are not included in solar quotes. To ensure solar is worthwhile for your home, review your energy bills to determine if solar will cover your usage and reduce costs.
Installer
Soft costs like labor, sales, marketing, and company profits vary by installation company and location.
Interconnection and permitting costs
Solar companies typically take care of the interconnection, permitting, and approvals process. Verify with your installer that the application fees are included in your quote. The fees are set by your utility, so the price varies based on location.
How does Hawaii solar save you money?
Energy costs have risen across the U.S. in recent years, and Hawaii residents are no strangers to high electricity costs. If you install enough solar panels on your home, you could offset your monthly electric expense entirely. You can save even more by returning the excess energy your system generates to the grid. In the long run, Hawaii solar panels aren’t an expense — they’re an investment.
Based on the current average monthly electricity bill in Hawaii ($221.64), it would take you about eight years to pay off the average U.S. solar panel installation costs. You can save thousands on your energy bills over 25–30 years, which is the average lifespan of a solar system.
The best Hawaii solar credits and incentives
Solar panels represent a major investment for most households. The good news is you can reduce the total costs of going solar by taking advantage of various rebates and incentives.
A 30% solar tax credit offered by the government to homeowners who purchase and install a solar system on their primary or secondary residence from the start of 2022 to 2032.
Credits customers for solar energy exported to the grid during the evening, overnight, and early morning hours. Amounts vary by region and time of day but range from 11 cents to 20.97 cents per kilowatt-hour (kWh).
Honolulu solar incentives
The Honolulu Solar Loan Program provides interest-free loans with a 20-year payment term for qualified homeowners. Some borrowers may qualify for a reduced minimum payment to offset the cost of solar panels in Hawaii. This program is helpful for homeowners who want to purchase solar energy in Hawaii but can’t afford an upfront cash payment.
To determine your eligibility, you’ll need to submit:
The most recent federal income tax returns for any working adults in your household
Income verification documents
A signed and dated authorization form for the credit bureaus
Contractor bids and documentation
A copy of your most recent electric bill
Oahu and Maui solar incentives
Oahu and Maui residents served by Hawaiian Electric can earn a cash payment for adding a solar battery to their rooftop system. Each customer will be granted $850 per kW of battery capacity — plus $5 per kW per month in bill credits — they commit to the system for a 10-year period.
To be eligible for the program, you must be a new or existing residential customer and install your system on or after July 1, 2021, on Oahu or June 1, 2022, on Maui.
You must install your battery and use it to power your home or export energy for at least two hours per day between 6 p.m. and 8:30 p.m.
Proof of permit is required, and you’ll need to commit to a specific capacity of delivered energy every day. Learn more about detailed program requirements here.
Why choose Hawaii solar power?
Hawaii’s plentiful sunlight makes for a great solar market for many homeowners in the Aloha State. Plus, it can reduce your carbon footprint and overall environmental impact.
Lower your energy costs
Investing in solar panels for your rooftop can lower your monthly energy bills. Using solar power to supplement your energy consumption can save you money throughout the year. How much you save will depend on how much electricity you generate and use.
Increase energy independence
A residential solar array allows you to generate your own power without totally relying on your electricity provider or utility. In 2020, 78% of Hawaii’s solar installations included solar battery storage. Adding this optional component to your system can help you maintain power and avoid rate spikes during high demand.
Go green
Solar panels are a great way to reduce your household’s carbon footprint. Solar power is a renewable energy source, and solar production doesn’t emit carbon and other pollutants into the environment.
The U.S. Department of Energy estimates that a solar system meeting half an average household’s electricity use would eliminate half a ton of sulfur dioxide and a third of a ton of nitrogen oxide pollution over its lifetime.
Should I buy or lease my solar panels?
Homeowners have the choice of buying or leasing solar panels from solar companies. As solar technology advances and the upfront cost of solar companies. Solar systems have become more affordable as solar technology advances, and the upfront cost of solar panels in Hawaii continues to decrease. More homeowners are buying their solar panels with cash or a loan and taking advantage of solar tax credits and other incentives. Other ways to access solar include solar power purchase agreements (PPAs) and community solar programs.
Here’s a brief look at the pros and cons of different financing options.
Payment method
Benefits
Drawbacks
Cash purchase
Largest amount of savings over time, solar system ownership, eligible for incentives, electricity bill savings
No upfront costs, power home with clean energy, electricity bill savings
No ownership
Hawaii solar companies
Hawaii has many solar panel companies to choose from. If you decide to go solar, SaveOnEnergy can help you determine which company will give you the best deal for your needs.
It takes time to gather the necessary information before choosing a solar panel company, but this is an important step in the process. As an energy marketplace, SaveOnEnergy partners with top-ranked solar companies to bring customized information to customers.
Answer a few questions on this page or call the number on your screen to speak with a solar expert today.
The following table shows some of the top solar installers available to Hawaii residents.
Solar installer
Year founded
Financing options
Warranty terms
2007
Cash purchase, solar loan, or lease
25-year performance guarantee and 10–25-year panel warranties
1985
Cash purchase, solar loan, or lease
25-year full system warranty
2011
Cash purchase, solar loan, lease, or PPA
25-year production guarantee
What to look for in a solar contractor
A solar contractor is an important partner in your solar installation project. The process of planning an installation, selecting equipment, and ensuring everything is done properly can be overwhelming, but your solar contractor is there to ensure every step goes smoothly. The best solar panel companies will design, install, service, and provide a warranty for your solar system. They will also help with permitting, energy monitoring, and financing for your solar panel purchase.
Because your contractor plays such a vital role, it’s important to consider these key factors as you compare your options:
Licensing and experience: The solar contractor you choose should be fully licensed, bonded, and insured. It’s best to look for installers with a proven track record of success rather than simply choosing the one with the cheapest price.
Customer service reputation: Look beyond a contractor’s website to find reviews from independent sources and customers who have worked with them. SaveOnEnergy offers complete reviews of our partner installers.
Transparent communication: Make sure you get complete, clear information about the process from the get-go. You shouldn’t be left wondering when each project phase will be complete or how much your system will cost.
Pricing: It’s always a good idea to get bids from several contractors to compare pricing. Use the data on this page to compare your bids to industry averages for solar panel costs in Hawaii.
Products and warranties: You should seek an installer that uses high-quality products from a trusted manufacturer. You’ll also want to determine what kind of warranties it offers and compare them with other prospective installers.
Beware of free solar panels in Hawaii scam
As you’re researching your options, you may come across enticing offers for no-cost solar programs in Hawaii. Unfortunately, these are likely scams designed to lure you into a misleading contract. Although you can take advantage of many Hawaii solar incentives to bring down the cost of a new solar panel installation, you should still prepare to spend $20,000 or more on your investment.
Important solar installation factors to consider
When you’re deciding whether to install a solar system for your home, there are other important factors to consider in addition to cost:
The amount of sunlight your home receives: Sunlight is abundant in Hawaii, but if trees or other buildings surround your home, the shade might affect the efficiency of your solar panels. You may need to remove obstructions before installation. Check with your installer to find out if it provides this service.
The condition of your roof: You’ll need to factor in any necessary roof repair or replacement costs before solar panel installation. You also have to consider the angle of your home’s roof. To generate the most power, your solar panels should be set up at a 15–40 degree angle on a south-facing roof.
HOA or neighborhood rules: You shouldn’t face any issues with your local homeowners’ association (HOA) because Hawaii prohibits any association from restricting solar installations. However, you will need to make sure your panels meet your HOA’s guidelines and register them within 30 days of purchase.
The cost of going solar in Hawaii depends on your location, the size of your home, the type of solar panels you choose, and the average amount of electricity you use per month. The average cost of residential solar panels in 2023 is $31,558, but you can reduce that cost significantly through federal credits and Hawaii solar incentives. Programs like solar leasing or interest-free financing can also help make Hawaii solar panels more affordable.
Yes. Hawaii residents pay some of the highest electricity rates in the country, making the cost-saving benefits of solar enticing. Hawaii also receives abundant sunlight, so your solar array will likely generate plenty of electricity. If you plan your project well, you may be able to offset many of these costs and save money in the long run. Solar panels can also add $15,000 to the value of your home.
SaveOnEnergy’s solar marketplace experts can help connect you with a quality solar panel installer. Our team can help you explore options and find the best Hawaii solar company for you.Answer a few questions in the form on this page to get started on your solar journey.
Solar energy is renewable. Over the course of a solar system’s lifetime, it eliminates over half a ton of pollution from sulfur dioxide, one-third of a ton of pollution from nitrogen oxides, and 100 tons of carbon dioxide, according to the National Renewable Energy Laboratory of the U.S. Department of Energy. Overall, the report notes that this will provide a “net gain of 26 to 29 years of pollution-free and greenhouse-gas-free electrical generation.”
The cost of solar panels in Hawaii and elsewhere has been declining steadily for years. That trend will likely continue as more resources are invested into bolstering the industry. Plus, today’s Hawaii solar incentives reduce system costs significantly, making now a great time to go solar in the Aloha State.
