SMART SOLAR FINANCING
Solar Tax Incentives & Rebates
Navigating the changing landscape of Federal and State Solar Tax Incentives
Hawaii: America's Solar Energy Leader
HAWAII STATE TAX INCENTIVES
Here's what Hawaii Homeowners need to know about updated incentive rules (Act 24):
Hawaii solar incentive changes can affect your solar project planning, but solar and battery storage can still support long-term energy goals. Sunspear can help you review practical next steps while your tax professional answers tax-specific questions. If you’re considering installing solar or battery storage, you’ve likely heard about changes to Hawaii’s state solar tax credit.
Hawaii Solar Tax Credit Changes in 2026
Act 24 changes Hawaii’s solar tax-credit program, but solar and battery storage continue to be important tools for managing energy costs, improving resilience, and supporting long-term energy planning.
On May 21, 2026, Governor Josh Green signed SB3125 into law, identified as Act 24, making significant changes to Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC). Act 24 updates Hawaii’s Renewable Energy Technologies Income Tax Credit, introducing a statewide annual funding cap, income-based eligibility requirements, certification standards, and a future program expiration date.
Because every solar and battery project follows a unique timeline—from consultation and design to permitting, installation, and utility approval—homeowners should discuss how these changes may affect their project carefully as guidance continues to develop.
The new law:
- Limits the total amount of state solar tax credits available each year.
- Introduces a $40 million statewide annual cap on tax credit claims.
- Leaves many homeowners wondering whether they’ll qualify for the full credit.
Good News for Existing Solar Customers
Following concerns from homeowners and the solar industry, Governor Green issued Executive Order 26-02 to protect many customers who had already started their solar projects before May 21, 2026.
If your project was already underway before Act 24 was signed, you may still qualify for the previous tax credit rules, depending on your project’s status and eligibility.
What If You're Just Getting Started?
Homeowners beginning a new solar project should expect their state tax credit eligibility to be governed by the updated Act 24 program.
While the tax credit has changed, solar remains one of the smartest long-term investments for Hawaii homeowners.
Why?
- Hawaii continues to have some of the highest electricity rates in the nation.
- Solar can significantly reduce monthly electric bills.
- Battery storage provides backup power during outages.
- Generating your own electricity helps protect against future utility rate increases.
Why Acting Sooner Still Makes Sense
Demand for solar continues to grow, and tax incentives, utility programs, and equipment availability can change over time.
Starting your project sooner gives you the opportunity to:
- Lock in current equipment pricing
- Begin reducing your electric bills sooner
- Increase your home’s energy independence
- Take advantage of available federal and state incentives while they remain in effect
This information is provided for general educational purposes only and should not be considered tax or legal advice. Please consult a qualified tax or legal professional regarding your specific circumstances.
Did Hawaii eliminate the solar tax credit?
No. Act 24 did not eliminate Hawaii’s renewable energy tax credit, but it changed how the program works and who may qualify. Eligibility and the value of available credits can depend on factors such as project timing, income, annual statewide limits, and individual tax circumstances.
Because the rules have changed, homeowners shouldn’t rely on previous tax credit estimates. Review your project’s eligibility with your solar provider and consult a qualified tax professional for guidance specific to your situation.
Why Choose Sunspear Energy?
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At Sunspear Energy, we help Hawaii homeowners navigate every step of the solar process—from system design and permitting to installation and understanding available incentives.
Our experienced team will evaluate your home’s energy needs and explain your options so you can make an informed decision with confidence.
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