Ending Soon
Tax Credits
At Hawaii Solar Group, we help you navigate the details, so you can make informed decisions and lock in the full savings available today, no matter how you go solar.
Real-World Example
Let’s look at what this could mean for a typical Hawaii homeowner:
| Item | Amount |
|---|---|
| Current Monthly HECO Bill | $400 |
| Annual Electricity Cost (est.) | $4,800 |
| Proposed Solar + Battery System Cost | $45,000 |
| Federal Tax Credit (30%) | ($13,500) |
| Hawaii State Tax Credit (est.) | ($10,000) |
| Net Cost After Tax Credits | $21,500 |
Return on Investment (ROI)
After 4–5 years, the system has effectively paid for itself—and you continue to save thousands every year after that.
| Calculation | Result |
|---|---|
| Net System Cost | $21,500 |
| Divided by Annual HECO Savings | $4,800/year |
| Estimated Payback Period | 4.5 years |
How the Tax Credits Actually Work
Let’s say you owe $12,000 in federal income taxes this year. In this example, the 30% federal solar tax credit gives you a $13,500 credit, meaning you now owe $0, and the remaining $1,500 rolls over into your 2026 return.
The Hawaii state tax credit (estimated here at $10,000) works similarly. If you can’t use the full amount in the first year, you can apply the rest to future years, or if you qualify, opt for the refundable version and receive a rebate check directly from the state. These are dollar-for-dollar tax credits, not deductions, and they represent one of the most impactful ways to reduce the cost of going solar.
Important Note: We strongly recommend speaking with your CPA or licensed tax preparer to determine how to best structure your tax situation to fully utilize these credits. Everyone’s income and liability profile is different, and proper planning ensures you capture the full value.
Our Strong Recomendation
Begin your project no later than mid-August 2025 to secure your place in line and avoid missing out on thousands in tax incentives.
Don’t Miss the Deadline for Full Tax Benefits
The average solar project in Hawaii, from initial consultation to completed installation, takes approximately 3 months.
Due to the upcoming changes in the Federal Solar Tax Credit, solar contractors across Hawaii are anticipating a 40–50% spike in installations during Oct, Nov, and Dec 2025. This surge could create backlogs, limited inventory, and delayed installation schedules.
To ensure your system qualifies for the full 30% federal tax credit, it must be installed and operational before December 31, 2025.
