The highest electricity rates in the nation (39¢/kWh) and excellent sun hours make Hawaii one of the best solar markets despite high install costs.
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Hawaii delivers the strongest solar economics in America: With electricity rates at 39¢/kWh and 5.5 daily peak sun hours, solar systems pay for themselves in just 5-7 years despite higher installation costs. HECO's net metering supports residential solar.
For Honolulu and island residents, solar is often the most cost-effective way to reduce energy bills. High electricity rates from imported fossil fuels make solar compelling across all islands.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| HECO Net Metering | Full retail credit | Active |
| Property Tax Exemption | 100% of added value | Active |
| Hawaii State Tax Credit | Expired 2020 | Expired |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $21,000 | $14,700 | ~$2,700/yr | ~5.4 years |
| 8 kW | $28,000 | $19,600 | ~$3,600/yr | ~5.4 years |