Secure Your Solar Savings: 2025 Hawaii Tax Incentives & Why Time is Running Out

Tyson Hunter

Published May 28th, 2025

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Hawaii’s solar landscape is shifting.

As Oahu and Maui race toward 100% clean energy by 2045, government incentives have made rooftop solar one of the smartest investments for homeowners.

But recent legislative proposals threaten to slash these benefits. Here’s what you need to know to maximize your savings before time runs out.

⚡ Urgent Update: 2025 Solar Tax Credit Changes

Key Developments:

RETITC Under Scrutiny: Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC)—a cornerstone 35% state tax credit (capped at $5,000)—faces potential repeal. House Bill 1369 initially proposed an immediate end to the credit, citing "market maturity". Though paused, lawmakers are pushing a 5-year sunset clause (HB 796), phasing out the credit by 2030.

Federal ITC Remains Strong (For Now):The 30% federal solar tax credit was extended through 2032 under the Inflation Reduction Act. After 2032, it drops to 26% (2033) and 22% (2034).

Battery Bonuses Drying Up: Hawaiian Electric’s Battery Bonus Program ($850/kW upfront + $5/kW monthly) closed in 2024, though storage still qualifies for the 30% federal credit.

"An immediate repeal of the solar tax credit would make it difficult, if not impossible, to achieve Hawaii’s 2045 clean energy goals."

– Rocky Mould, Hawaiʻi Solar Energy Association

💰 Maximize Your 2025 Solar Savings

Act now to lock in current incentives:

Real-World Savings Example:

A typical 6-kW system in Hawaii costs ~$18,645. With combined credits:

Federal ITC: $5,594 (30%)
Hawaii RETITC: $5,000 (max)
Net Cost: $8,051 —a 57% reduction! Payback occurs in ~3.3 years thanks to Hawaii’s sky-high electricity rates ($0.44/kWh)

🏝️ Island-Specific Incentives: Oahu vs. Maui

For Oahu Homeowners:

Property Tax Freeze: Solar upgrades won’t increase your property taxes for 25 years—saving ~$125/year for the average home.

Rehabilitation Loan Program: Low-interest loans for roof repairs to make your home solar-ready

For Maui Homeowners:

Solar Water Heater Financing: 0% interest loans + potential $1,000 rebate.

GEMS Program: 20-year solar loans at 5.5% APR for low/moderate-income households (income <140% AMI)

⏳ Why 2025 is Your Best Chance to Go Solar

Double-Dip Credits: Stack state + federal credits for 65%+ savings—but the RETITC may vanish.

Avoid Rising Costs: Tariffs and supply chain issues are pushing equipment prices up 10.

Energy Independence: With reduced net metering credits (only $0.15–$0.28/kWh exported), pairing solar with batteries ensures you maximize self-consumption

☀️ Why Choose Oceanic Home Solar for Your 2025 Installation?

We’re Oahu and Maui’s trusted solar partner, specializing in:

Urgent Incentive Navigation: We fast-track permits and paperwork to lock in 2025 credits.

Battery-Ready Designs: Optimize for Hawaii’s "self-supply" rules and blackout resilience.

Island-Specific Expertise: 10+ years servicing Hawaiian Electric, Maui Electric, and HELCO territories..

"Hawaii’s solar industry is fighting a war on two fronts: policy uncertainty and rising tariffs. Homeowners who act now will secure the greatest protection."