Electricity rates in Hawai‘i fluctuate radically based on unstable oil costs. In 2008, the average residential rate for Maui residents was 0.36 cents per kilowatt (kW) hour, compared to 22.5 cents in 2005. (learn more about electrical rates)
Why "go solar?" For one, a solar electric system will insulate your monthly energy costs against future rate increases. Secondly, with a solar system, you will own your electricity generation, rather than "renting" it from the local utility.
How much will it cost? The cost of a solar system is contingent on the energy demand of your home. Today, the average cost of a home system will range between $14,000 and $30,000. In most cases, if it is financed in a mortgage, the monthly payment for the cost of a solar system will be far less than what you would have paid for your monthly electric bill. In addition, federal and state tax incentives and rebates often pay for more than half of the cost of the solar system. On average, most homeowners recover the cost of their solar system cost within 6 to 8 years, proving that this is one investment that is safe, reliable and inflation adjusted.
Financial Incentives for Hawai‘i Residents to "Go Solar"
The federal government provides an unlimited 30 percent Federal Energy Tax Credit per year for residential solar systems installed after Dec 31, 2008.
In addition, the state allows a 35 percent tax credit limited to $5,000 per year for a residential solar system. Customers may also elect to take the state tax credit as a refund. The amount will be reduced to 24.5 percent, and the limit is $3,500 per system.
(Click here to see a Sample Financial Analysis.)
Please note that these tax incentive calculations are based on our understanding of the new energy conservation credits outlined in the Solar Energy Industries Association (SEIA) Guide to Federal Tax Incentives for Solar Energy. Please click on the link below to download the manual, or schedule a consultation with your tax professional.