Solar Financing in Hawaii

Financing Solar in the Aloha State

Because Hawaii has the highest electricity rates in the nation, the financial return on a solar system is exceptionally strong, regardless of how you pay for it. However, the unique state incentives make one financing method clear winner.

The Power of Ownership

In Hawaii, purchasing your system (via cash or loan) is almost always recommended over a lease or PPA. This is because owning the system allows you to claim the Hawaii Renewable Energy Technologies Income Tax Credit (RETITC) in addition to the Federal ITC. The RETITC offers a 35% state tax credit (capped at $5,000 per system). If you sign a lease, the leasing company takes both the federal and state tax credits.

Financing Batteries

Since almost all new systems in Hawaii require a battery to avoid punitive grid-export limits, your loan amount will be higher. Fortunately, local Hawaiian credit unions and banks frequently offer specialized, low-interest solar and green energy loans specifically designed for residents, often with more favorable terms than national solar lenders.