Understanding Hawaii's 2026 policy moment
A protected credit, but not for long
Hawaii's Renewable Energy Technologies Income Tax Credit has been the most generous state solar incentive in the country for nearly two decades, at 35% of system cost up to a $5,000 cap. In May 2026, Governor Green signed SB 3125 into law as Act 24, which imposes a $40 million statewide aggregate cap starting in 2027, an income eligibility cutoff, a new certification process, and a full sunset of the credit after 2029. Executive Order 26-02 specifically shields 2026 installations from these changes, so homeowners placing systems in service this year still get the full, uncapped 35% credit. Check your federal ITC status to see how this pairs with your 2026 federal eligibility.
What changes for 2027 and beyond
Starting with tax year 2027, the credit becomes subject to a shared statewide budget, meaning your exact credit amount may not be confirmed until the following year through a new certification process. Per the Hawaii Department of Taxation's own announcement on the law, individual filers with adjusted gross income above $175,000, and joint filers above $350,000, lose eligibility entirely starting in tax year 2027, and the credit isn't available at all for taxable years beginning after December 31, 2029. If you're planning an installation for 2027 or later, budget conservatively rather than assuming you'll receive the full 35%, and confirm current status directly with the Hawaii State Energy Office before signing a contract. Use the rebate deadline tracker to keep this timeline alongside your other project deadlines.
Export value versus self-consumption under CGS+
The Customer Grid-Supply Plus program is the main interconnection option for new Hawaiian Electric customers, crediting exported power at a Public Utilities Commission-set rate typically between $0.10 and $0.18 per kWh, well below Hawaii's retail rates of roughly $0.35 to $0.42 per kWh. That gap makes self-consumption, and pairing solar with a battery to shift usage to evening hours, meaningfully more valuable than exporting excess power, similar to the dynamic seen in states like Georgia that also moved away from full retail net metering.
Honolulu's added property tax benefit
City and County of Honolulu residents can also apply for the Real Property Exemption for Alternative Energy Improvements, which excludes the added value of a solar installation from property tax assessment for 25 years, commonly saving around $125 a year. This is separate from the state-level RETITC and specific to Honolulu, so residents of other counties should check their own county's rules rather than assuming this exemption applies statewide.
Your rebate total changes what a loan costs each month, and the combined loan and rebate timing tool shows that payment once you enter both figures.