Hawaii residential solar energy incentives

Solar roofs initiative loan program - Honolulu

The county of Honolulu teamed up with Hawaiian Electric Company to offer low interest loans ranging from 0%-2% for residents who install solar water heating systems.

Loans amounts vary and have a 7 year loan payback period.

Solar roofs initiative loan program – Maui

The county of Maui in partnership with Maui Electric Company have provided this program which offers zero interest loans and a $1000 rebate to residents who install solar water heating systems.

Loan amounts and repayment periods vary.

Solar water heating loan program – KIUC

Kauai Island Utility Cooperative has a program provided through a partnership between Kauai Community Federal Credit Union and Kauai County Housing Agency that gives qualifying member zero interest loans for solar water heating systems.

Kauai Community Federal Credit Union and Kauai County Housing Agency provide the funding for the loans and KIUC pays the interest directly to the lender for the customer making it possible to get interest-free loans.

Repayment for participants is 60 monthly payments.

Solar water heating rebate program – KIUC

Residents in Kauai are eligible to receive a rebate of $800 for each solar water heating system installed.

Energy solutions solar water heater rebate – HECO, MECO, HELCO

This is a one-time rebate of $1000 offered to qualifying customers who install solar water heaters.

Customers must be within the territories of Hawaiian Electric Company, Maui Electric Company or Hawaii Electric Light Company.

Solar and wind energy credit

The Hawaii Energy Tax Credits allows a personal tax credit of 35% of the total equipment cost and installation for solar thermal or photovoltaic systems and 20% of the total cost and installation of wind powered systems.

Qualifying systems must be new and meet all safety and performance standards.

Residential renewable energy tax credit

This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential energy conservation subsidy exclusion

This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-efficient mortgages

This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.