Hawaii is already a leader in the nation when it comes to solar-water heaters, and in recent days Hawaii Energy increased its instant rebate on new, qualifying solar water heating systems from $500 to $750.
For residents that would like to avoid upfront expenses, Hawaii Energy offers an interest buy-down option called “Hot Water, Cool Rates.” Available in lieu of the instant rebate and through participating lenders, Hawaii Energy provides a $750 to the lender to buy down the interest on a qualifying solar water heating loan. The lender then provides a zero to low interest loan depending on the applicant’s credit and other factors determined by the lender. Residents can choose from a list of local banks and credit unions.
Both the state of Hawaii and the US federal government offer generous tax credits for new solar photovoltaic and hot water systems. These incentives dramatically lower the cost of purchasing and installing a solar system and have fueled the huge wave of interest in the last several years for solar energy in Hawaii.
HAWAII SOLAR HOT WATER REBATES, CREDITS, & INCENTIVES
Federal Tax Credits
A 30% federal tax credit is available on the cost of equipment and installation of a solar hot water system placed into service before December 31, 2019.
There are no caps on the federal tax credits.
Hawaii State Tax Credits
The Hawaii Energy Tax Credit allows solar customers to claim an income tax credit of 35% of the cost of equipment and installation of a solar hot water system. The credit is capped at $2250 per system.
Hawaii Energy Instant Rebate
This instant rebate immediately reduces the amount you pay to your contractor. Once your installation is complete and verified, we reimburse your contractor for the amount of the rebate. It’s a win-win for all.
Hot Water, Cool Rates
The Hot Water, Cool Rates offer helps Hawaii residents finance a new solar water heating system through one of the many Participating Lenders
To learn more about the rebates, credits, and incentives mentioned: