Hawaii Solar Incentives in 2026: How to Maximize Your Savings Without the Federal ITC

If you are a homeowner on Oahu or Maui considering solar this year, you already know the big news: the 30% Federal Solar Tax Credit officially expired on December 31, 2025.

For a lot of local families, this has sparked a major question: Is going solar in Hawaii still worth the investment in 2026?

The short answer is yes. While the loss of the federal credit changes the math, Hawaii still boasts the highest electricity rates in the nation. Furthermore, the Aloha State has stepped up with powerful local incentives and battery programs to ensure homeowners can still achieve a rapid return on investment and secure energy independence.

Here is everything you need to know about the Hawaii solar incentives available to you in 2026, and how Oceanic Home Solar can help you navigate them.

1. The Hawaii State Solar Tax Credit (RETITC) Is Still Going Strong

While the federal government pulled back, Hawaii has kept its Renewable Energy Technologies Income Tax Credit (RETITC) in place. This incredible incentive allows you to claim a 35% tax credit on the cost of your solar system, up to a maximum of $5,000 per 5kW system.

Industry News: As of March 2026, state lawmakers are currently debating House Bill 2241, which proposes removing this $5,000 cap entirely for low- to moderate-income households. We are watching this closely and will help our customers navigate these savings as they become law!

2. HECO’s BYOD Plus Program: Get Paid for Your Battery

In 2026, installing solar without a battery means leaving money on the table. Hawaiian Electric (HECO) recently launched the Bring Your Own Device Plus (BYOD Plus) program, which replaced the old Battery Bonus.

When you install a battery with Oceanic Home Solar and enroll in BYOD Plus, you can receive:

• An upfront cash incentive of $400 per kilowatt (kW) committed to the grid.
• An additional $400 per kW if you meet Low-to-Moderate Income (LMI) qualifications.
• Monthly bill credits for the energy your battery exports during a 2-hour daily window.

This program drastically reduces the upfront cost of your battery storage, ensuring your home stays powered during outages while shielding you from HECO’s high evening Time-of-Use rates.

3. The Honolulu Property Tax Exemption

If you live on Oahu, adding value to your home usually means paying higher property taxes. Fortunately, the City and County of Honolulu offers a 25-year property tax exemption for the added home value created by your new solar installation. You get all the equity benefits of a premium home upgrade without the annual tax penalty.

Why 2026 is the Year to Add Battery Storage

Under HECO’s Smart Renewable Energy Export program, the rates they pay you for sending excess power back to the grid are generally lower than what they charge you to buy it. The secret to maximizing your ROI in 2026 is self-consumption. By pairing your Oceanic Home Solar panels with a high-capacity home battery, you capture your own power during the day and use it at night, effectively cutting ties with peak grid prices.