Cost of Solar Panels in Hawaii: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Hawaii:

  • Average Cost Per Watt: $2.67
  • Cost of Average System: $10,867*
  • Cost of Energy Without Solar: $64,143
  • Payback Period: 6 Years*
  • Lifetime Savings of Going Solar: $49,458

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/20/2022

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Find Cost Savings on Solar in Hawaii

As a homeowner in Hawaii, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Hawaii
  2. What Determines the Cost of Solar Panels in Hawaii?
  3. Hawaii Solar Incentives
  4. FAQ: Solar Panel Cost Hawaii

 

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Cost of Solar Panels in Hawaii

The cost of solar panels in Hawaii is around $2.67 per watt, which is just a hair above the national average of $2.66. A typical homeowner in Hawaii will need a system that is around 5.5 kilowatts to offset the average monthly energy bill of $163.1 Using our solar calculator, we can estimate that the standard solar panel system totals $14,685, which is reduced to $9,545 after factoring in the 35% state tax credit, and further drops to $7,063 after the 26% federal tax credit. 

This total is well below the national average, given that Hawaii homeowners require a far smaller system than most and have an excellent state tax credit. Hawaii also has the highest electricity rates in the country, and (possibly to avoid high bills) residents use fewer kilowatt-hours of power per month than in any other state.2 This, coupled with a high solar irradiance in the state, makes it especially worthwhile to consider going solar in Hawaii.3

Solar Panel System Installation Cost in Hawaii

Solar energy systems are typically priced on a per-watt basis, which means the size of the system you need will be the primary driving force behind the total price you’ll pay. Every additional kilowatt you need to offset your electricity costs will add approximately $2,670 to your total. The table below provides some typical solar panel system sizes in Hawaii, along with the average cost before and after the federal tax credit is considered.

Size of Solar Panel System Hawaii Solar Panel Cost Cost After Federal Tax Credit
3 kW $8,010 $5,927
4 kW $10,680 $7,903
5 kW $13,350 $9,879
6 kW $16,020 $11,855
7 kW $18,690 $13,831
8 kW $21,360 $15,806
9 kW $24,030 $17,782

Wondering which solar panel installation companies in Hawaii are the most reputable and reliable? Click here to see a list of the best solar installers in your area.

What Determines the Cost of Solar Panels in Hawaii?

While the system size you require will be the most significant factor when it comes to your total price of going solar, there are other things to consider as well if you want the most accurate estimate. We’ll provide some information on the next most influential cost factors in Hawaii below.

Solar Equipment

The solar equipment you choose is typically the second most influential factor in your system’s total cost.

Hawaii homeowners have access to a variety of solar equipment brands, each of which provides a different level of energy efficiency and durability and comes at a different price. If you choose the most affordable solar panels, you’ll spend far less upfront than you would going with the most efficient solar panels and equipment. However, if you choose high-quality equipment, you stand to see a better return on investment over time.

Additionally, many solar panel installation companies give you options for the pieces of equipment you add to your home solar project. Nearly all residential solar arrays have panels and inverters. Some companies let you customize your system with solar batteries to maintain power through blackouts or at night, install electric vehicle chargers, or offer other add-ons. These will, of course, increase your costs, but they will also boost the value of your system overall.

Solar Financing

Despite the relatively low cost of going solar in Hawaii, the average price of $14,685 will still be prohibitively expensive for many homeowners. Thankfully, solar financing makes renewable energy sources far more accessible by spreading out the cost over several years.

Before you dive into a solar loan, though, you’ll have to consider your all-in cost using financing, as you will end up paying more money over time based on your interest rate. Even low-APR loans can add to your total significantly.

You can minimize your financing costs by choosing a low-APR solar loan and by putting more money down upfront.

Solar Installation Company

Finally, the solar installation company you choose to handle your solar conversion can play a part in determining the cost of solar panels in Hawaii. Each company can charge varying amounts for labor and equipment, both of which will have an impact on what you pay for the installation.

It’s important not to get too caught up in the cost of going solar that you forget to consider the value provided. For example, you don’t want to end up with a company that has poor customer service or short warranties just because it was the cheapest option available.

Hawaii Solar Incentives

The average cost of $14,685 to go solar in Hawaii is prohibitively expensive for many homeowners. Thankfully, the state and federal governments provide a number of solar tax incentives and benefits to entice homeowners to make the switch and to ease the financial burden involved. The table below provides some information on the most appealing solar incentives available to Hawaii homeowners.

Hawaii Solar Incentive How it Affects the Cost of Solar Panels in Hawaii
Solar & Wind Energy Credit The Renewable Energy Technologies Income Tax Credit (RETITC) is a state tax credit that provides Hawaiians with a massive credit against their personal income tax — 35% of the total cost of going solar. In Hawaii, where the average system cost is $14,685, that amounts to an average credit of $5,140.
City of Honolulu Real Property Tax Exemption If you live in the City of Honolulu, you can take advantage of the city’s property tax exemption. Normally, home improvements that increase the value of your home also bump up your property taxes. This tax exemption guarantees that your property taxes won’t increase from going solar, even though solar panels increase your home value.
Low-Income Solar Programs Hawaii has a Green Energy Money Saver (GEMS) plan that provides more accessibility to solar energy solutions for low-income homeowners, renters and small businesses. Participants can pay back the cost of going solar via their standard monthly energy bill payments.
Net Metering Although net metering (NEM) is no longer available in Hawaii, the Hawaii Public Utilities Commission has approved new rooftop photovoltaic (PV) programs that allow customers of Hawaiian Electric to take advantage of new energy storage technology.
Local Solar Rebates & Incentives Due to net metering not being available in Hawaii, energy storage is a huge factor in solar adoption. The solar and wind credit mentioned above is helpful, but more is often needed. You can check for local incentives from your utility company — like Hawaiian Electric’s battery bonus program — on the DSIRE database.
Federal Solar Tax Credit The federal solar investment tax credit (ITC) is available to homeowners nationwide, including those in Hawaii. It provides a credit of 26% of your cost of going solar to your federal income taxes owed. In Hawaii, where the average cost to go solar is $14,685, that’s a typical credit of $3,818. If you also claim the state tax credit, you’ll receive 26% of the reduced rate, or about $2,482.

Best Solar Panel Brands and Installed Solar System Costs in 2022

Hawaii residents have access to many different solar equipment brands, including some of the most affordable and those with the highest efficiency. The table below provides a list of some of the best solar panel brands in the area, plus relative pricing to help you determine which might fit into your budget.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

 

People Also Ask 

EcoWatch FAQ: Solar Panel Cost Hawaii

The EcoWatch team gets questions on a daily basis from Hawaii homeowners about the process of and costs associated with going solar. The below questions are the ones we see most frequently.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

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