Is Solar Energy in Hawaii Affordable?
Let’s be real: getting solar energy installed on your home can be a big upfront investment. Most homeowners are excited to hear about the benefits of generating their own energy, but as soon as they see the price tag they decide those benefits aren’t quite worth it. Government programs have made going solar more attainable for the average American, but that doesn’t mean there isn’t room for further improvement.
The rest of the country should take a page out of Hawaii’s book: they offer some of the best local solar incentives in the USA. Combining the local benefits with the federal tax credit gives Hawaii homeowners some of the most accessible, affordable solar energy in the country!
What Solar Incentives are Available in Hawaii?
The most commonly known solar benefit for Americans is the Renewable Energy Tax Credit. This credit has seen many changes throughout the years, but with the introduction of the Inflation Reduction Act in 2022, coverage was set to 30% of the total cost of construction. This means that solar customers living in Hawaii can automatically recuperate a large chunk of their investment when the next tax season comes up.
Hawaii has a goal of reaching 100% renewable energy in the next few decades. To achieve this they implemented their own state tax credit on solar. The total tax credit comes out to 35% of the project cost up to $5,000! By combining both the state and federal tax credits for your solar project you can recoup over 50% of your costs at tax time.
Here is an example of how one of our solar customers took advantage of these great incentives to get the best deal on solar:
Ricky was talking with one of MexLucky’s solar experts about getting solar installed on his home. He had looked at many different proposals and had settled on a 4.4 kW system that was priced at $14,000. Ricky was concerned about the upfront costs but he knew he would be able to get a lot of it back at tax time. His system was installed in October and he paid the total amount to get it turned on. In January Ricky got his W2 in the mail and filed his taxes with his accountant. When he got his return he was able to get back $4,900 on his state taxes, and $4,200 on his federal ones. This gave him a net price of $4,900 for his solar project. Ricky was able to calculate that he will get a return on investment in a little over 3 years, but his system will keep powering his home for the next few decades!
If you are interested in learning more about how you can benefit from solar energy, including tax credits available in states other than Hawaii, please contact us to speak to one of our solar experts!