Hawaii solar panels: The complete guide in 2025
Data updated Jul 3, 2025
Looking to go solar in Hawaii? On average, you'll need to install a 8.84 kW solar panel system to cover your electric bill—which costs about $20,136 after the federal tax credit.
Cost for an average system in Hawaii
| Out of pocket cost, cash | $28,765 |
| Federal tax credit (30%) | - $8,630 |
| Price post tax credit | $20,136 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $139,245 | 3 Years | 122% |
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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Going solar in Hawaii
Hawaii’s abundant sunshine and sky-high electricity prices make solar panels a great investment for pretty much anyone.
Factor in the federal and state solar tax credits and Hawaiians can cut the cost of solar by thousands of dollars, speeding up their payback periods and increasing the value of their investments.
Here's our guide to going solar in the Aloha State.
Cost
How much do solar panels cost in Hawaii?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Hawaii homeowner needs a 8.84 kW solar panel system to cover their electricity needs, which comes out to $28,765 before incentives. Prices range from $24,450 to $33,080 before incentives. After the federal tax credit, that drops by 30%, and Hawaii has some local incentives as well.
While this may sound high, it will pay off in Hawaii. That's why over 600 Hawaii homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 2.73 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
Solar panel systems are expensive upfront purchases, but there are a few different financing options to make that initial cost more manageable.
Cash purchase: You pay for your entire system upfront. This provides the best long-term savings.
Solar loan: Enables you to maintain ownership of your system while owing little to no money upfront. When it comes to solar loans, subsidized clean energy loans through local incentive programs are usually your best bet. The next best options include a home equity loan or a personal loan—private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). In general, these provide the lowest savings and garner the most negative press about solar. If you go this route, remember to read the fine print so you’re not trapped in a contract for longer than you intend.
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Incentives
What are the best solar rebates and incentives in Hawaii?
Incentives help bring solar's price tag down considerably in Hawaii. Here are the major ones to know about:
| Incentive | Average savings in Hawaii | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $8,630 | Lowers your solar panel system's cost by 30% |
Renewable Energy Technologies Income Tax Credit (RETITC) | Up to $5,000 | Lowers your solar panel system’s cost by 35% |
Green Energy Money $aver (GEM$) On-Bill Program | Varies | Provides fixed, low-interest financing: 5.5% interest rate for up to 25 years. Note: Temporarily on hold for new applications as of November 2024 |
Is net metering available in Hawaii?
Hawaii no longer offers net metering, but if you connect your solar panel system to the grid, you can benefit from net billing. The catch is that Hawaiian Electric only offers partial credit for every kWh—you’re selling the electricity to them at a significant discount, compared to what they’ll charge you to buy that electricity back later.
If you want to squeeze the most possible value out of your solar panels under net billing, consider installing a solar battery.
Equipment
Equipment quality
Solar panels continue to get more efficient, meaning they produce more power per square foot. In 2025, the most popular solar panels can produce about 450 watts of electricity in full sunlight—you’ll want panels with at least that much power output to get the most out of your installation.
It’s also important to choose a solar inverter setup that works for your roof’s layout.
And if you plan to install a solar battery, pick one that can easily integrate with that inverter.
While premium equipment can result in sticker shock, it typically saves you more money in the in the long run: The highest-quality panels degrade at a slower rate and maintain more of their power output for longer, and the best warranty terms often guarantee up to 40 years of coverage in case you need repairs or replacements.
Companies
Who are the best solar installers in Hawaii?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Hawaii:
Ready to start looking for a solar installer?
Explore some of the most popular ones near you:
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resources
Top solar resources for Hawaii
- Hawaii Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Hawaii State Energy Office
Learn about HI renewable energy programs from the state government.
- HI Public Utilities Commission
Read more about how utility companies work in HI.
- Hawaii Electricity Profile (EIA)
Learn about HI energy production and prices.
- HI State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in HI.
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