Is Solar Worth It in Hawaii in 2026?
Hawaii is the one state where the export side of solar barely matters, because the import side is so extreme. Hawaii homes pay about 40.6 cents per kWh in 2025 — the highest retail electricity price in the country, roughly three times the mainland average — because nearly all of the state's power historically came from imported oil shipped across the Pacific. Every kilowatt-hour your roof makes is a kilowatt-hour you don't buy at that price, and that single fact carries more weight here than in almost any other state.
2026 changed the federal math everywhere, and Hawaii is no exception. The 30 percent federal tax credit that used to shave thousands off a Hawaii install ended for systems completed after December 31, 2025. What's different here is the state side: Hawaii's 35 percent state credit survived into 2026. The complication is that Hawaiian Electric hasn't offered true net metering to new customers since 2015 — the earliest of any US utility — so you won't be selling power back at that 40.6-cent rate. You'll be self-consuming it, ideally with a battery. This page walks through the real numbers so you can decide with your own bill in hand, not an installer's slide deck.
Hawaii Electricity Prices Are the Highest in the US
Solar is a bet on what you'd otherwise pay the utility. Here's the last several decades, from federal EIA data.
Full Hawaii electricity price data (1990–2025)
| Year | Hawaii (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 10.3 | 7.8 |
| 1991 | 10.5 | 8.0 |
| 1992 | 10.9 | 8.2 |
| 1993 | 12.3 | 8.3 |
| 1994 | 12.5 | 8.4 |
| 1995 | 13.3 | 8.4 |
| 1996 | 14.3 | 8.4 |
| 1997 | 14.8 | 8.4 |
| 1998 | 13.8 | 8.3 |
| 1999 | 14.3 | 8.2 |
| 2000 | 16.4 | 8.2 |
| 2001 | 16.3 | 8.6 |
| 2002 | 15.6 | 8.4 |
| 2003 | 16.7 | 8.7 |
| 2004 | 18.1 | 9.0 |
| 2005 | 20.7 | 9.5 |
| 2006 | 23.4 | 10.4 |
| 2007 | 24.1 | 10.7 |
| 2008 | 32.5 | 11.3 |
| 2009 | 24.2 | 11.5 |
| 2010 | 28.1 | 11.5 |
| 2011 | 34.7 | 11.7 |
| 2012 | 37.3 | 11.9 |
| 2013 | 37.0 | 12.1 |
| 2014 | 37.0 | 12.5 |
| 2015 | 29.6 | 12.7 |
| 2016 | 27.5 | 12.6 |
| 2017 | 29.5 | 12.9 |
| 2018 | 32.5 | 12.9 |
| 2019 | 32.1 | 13.0 |
| 2020 | 30.3 | 13.2 |
| 2021 | 33.5 | 13.7 |
| 2022 | 43.0 | 15.0 |
| 2023 | 42.4 | 16.0 |
| 2024 | 42.9 | 16.5 |
| 2025 * | 40.6 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Hawaii residential customers paid about 40.6 cents per kWh in 2025 (EIA preliminary), up roughly 96 percent since 2005, with the last decade climbing at about 3.2 percent a year. The reason is structural: Hawaii has no fossil fuel of its own and historically burned imported oil for the bulk of its generation, so its electricity bill has always tracked global oil shipping costs rather than a regional grid. That's exactly why Hawaii homeowners have adopted solar faster than almost anywhere else — the payback math starts from the most expensive electricity in America.
The Hawaii Sun, Month by Month
Hawaii sits at 21.1°N latitude — close enough to the equator that the sun stays high nearly year-round, with none of the deep winter dip a mainland roof sees. Honolulu panels produce an estimated 1,606 kWh per installed kilowatt per year, among the better production numbers in the country.
Hawaii monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 119 |
| Feb | 117 |
| Mar | 135 |
| Apr | 139 |
| May | 142 |
| Jun | 143 |
| Jul | 149 |
| Aug | 153 |
| Sep | 139 |
| Oct | 136 |
| Nov | 117 |
| Dec | 119 |
| Year | 1606 |
Source: NREL PVWatts typical-year estimate (Honolulu), per installed kW at latitude tilt.
The practical takeaway: Hawaii's month-to-month production swings less than almost any mainland state, so your solar output tracks your usage more evenly across the year. That matters more here than elsewhere, because with weak or no full-retail export credit, the power you use as you make it is worth far more than power you send to the grid and buy back later.
What Solar Costs in Hawaii in 2026
Statewide, residential solar runs about $3.14 to $3.26 per watt installed before incentives as of mid-2026, per EnergySage — a typical 8.63 kW system costs roughly $23,900 to $32,300 gross, averaging around $28,100. Honolulu County tends to land near the lower end of that range; the outer islands can run higher due to shipping and labor logistics.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $15,700 to $16,300 | ~8,030 kWh/yr (~$272/mo at 40.6¢) | Smaller home, lower usage |
| 8 kW | $25,100 to $26,100 | ~12,850 kWh/yr (~$435/mo) | Average Hawaii home |
| 12 kW | $37,700 to $39,100 | ~19,270 kWh/yr (~$652/mo) | Large home, heavy AC/pool use |
Unlike most states, Hawaii's per-watt cost is fairly tight, so shopping mostly gets you better equipment rather than a dramatically different price. There's no sales tax exemption here — Hawaii's General Excise Tax (roughly 4.0 to 4.5 percent depending on county) still applies and is typically passed through on the invoice.
Estimate Your Hawaii Payback
The calculator below is set to Hawaii's average electricity rate and Honolulu-area sun production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year savings. Hawaii's rate growth has run about 3.2 percent a year over the last decade — a reasonable starting value for the inflation field, though history shows it can move in bigger bursts tied to oil prices.
Hawaii Solar Incentives That Still Exist in 2026
Here's what's gone and what survived.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If a quote still assumes it, the rest of the numbers are probably stale too.
- Still here — the state RETITC credit: Hawaii's Renewable Energy Technologies Income Tax Credit (HRS §235-12.5, Form N-342) covers 35 percent of system cost, capped at $5,000 for a typical single-family PV system. You can carry it forward as a nonrefundable credit, or elect a refundable version at 70 percent of its value. Governor Green's Executive Order 26-02 confirmed these terms hold for 2026 even though Act 24 will revise eligibility and add a sunset for tax years after 2026 — verify the rules again before a 2027 install.
- Still here, county-by-county — property tax exemption: Honolulu excludes the added value of a solar PV system from your real property tax assessment for 25 years, but you must file the Renewable Energy Claim for Exemption (form BFS-RP-P-5D) by September 30 the year before it takes effect — it is not automatic. Hawaii, Maui, and Kauai counties have their own versions.
- Not available — sales tax exemption: Hawaii's General Excise Tax applies to solar equipment like any other purchase, customarily passed through to you on the invoice.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company, not you. Compare a lease against a cash or loan purchase before assuming it's the better deal.
Net Metering in Hawaii: It Ended in 2015
If an installer's pitch mentions "net metering" for a new Hawaii system, that's out of date. Hawaiian Electric (HECO, HELCO, MECO) closed traditional full-retail Net Energy Metering to new applicants back in 2015 — the first utility territory in the country to do so. New solar customers today choose between two successor programs instead:
- Customer Self-Supply (CSS): Battery required. The system is designed so essentially none of your exported energy reaches the grid — you store and use your own power, with near-zero export credit. This is the closest thing to true energy independence available on Oahu.
- Smart Renewable Energy (SRE) Export: The current primary program for new applicants. Pays a time-of-use export credit — on Oahu, roughly 13.5 cents per kWh in the daytime, 18.9 cents overnight, and 32.9 cents at evening peak — trued up annually, with a 7-year rate lock.
A third option, Customer Grid-Supply Plus, is now listed by HECO as a legacy program largely closed to new enrollment. None of these three pays anywhere near the 40.6-cent retail rate for every exported kWh the way old-style net metering did. That gap is exactly why battery attachment rates are so high in Hawaii: a kWh you use yourself is worth 40.6 cents, while a kWh you export under SRE Export is worth 13.5 to 32.9 cents depending on the hour — and under CSS, close to nothing. Confirm the exact current rates and availability on your island directly with Hawaiian Electric before signing anything.
Your Roof Comes First
Hawaii's building codes require solar racking to meet high wind-load standards, since the islands sit in the Pacific hurricane and trade-wind belt. A proper install bolts the array into the roof structure and flashes every penetration correctly — but none of that matters if the roof underneath is near the end of its life.
If your shingles are more than 15 years old, replace the roof before adding panels — removing and reinstalling a solar array later costs thousands in labor alone. Read the warning signs in our roofing guide, and confirm your electrical panel can handle the added solar and battery circuits in our electrical guide.
How to Go Solar in Hawaii
Work through these steps in order before you commit.
- Pull your last 12 power bills and find your average monthly cost — at 40.6 cents per kWh, even modest usage adds up fast.
- Decide whether you want Customer Self-Supply (battery, near-total independence) or Smart Renewable Energy Export (time-of-use credit, no battery required) — this changes your system design and quote significantly.
- Confirm your roof has at least 10 to 15 years of life left, or plan to replace it first.
- Get at least three quotes and compare price per watt, equipment, and warranties — and make sure none of them assume the expired federal credit or old-style net metering.
- Ask your installer to model your specific export program's rates against your actual usage pattern, not a generic retail-offset estimate.
- File for the state RETITC credit within 12 months of the close of the tax year, and file Honolulu's property tax exemption claim by September 30 the year before, if applicable to your county.
For the full picture of how panels work, sizing, and buying versus leasing, read our main solar panels guide. It covers the technology and the decision in depth, while this page focuses on what is specific to Hawaii.
Sources
Figures on this page are 2026-current and come from primary sources. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 values preliminary). Production estimates: NREL PVWatts. State credit: Hawaii Dept. of Taxation, Form N-342 Instructions and the Hawaii State Energy Office RETITC page. Export tariffs: Hawaiian Electric, Smart Renewable Energy Export. Costs and incentives: EnergySage, Hawaii Solar Panel Cost. We review these figures every six months.