1. What are the incentives to purchasing Solar Power for my Hawaii home or business?
Investing in Solar energy is easy to do in sunny Hawaii. You and the islands not only benefit from clean, green energy, but from both Federal and Hawaii State Tax incentives too.
The Federal Solar Investment Tax Credit (ITC) allows for a 30% tax credit off of your personal or business taxes. This credit is off of the total cost and installation of equipment and the installed solar system.
Congress has extended ITC tax credit of 30% through 2019, at which point it will fall to:
26% in 2020
26% in 2021
26% in 2022
22% in 2023 and
10% in 2024 (0% for Residential systems and 10% for Commercial systems)
Hawaii State offers a 35% tax credit incentive to residential home owners and businesses. For Residents that is a 35% credit of your total system cost or $5000 per 5kW of solar, which ever is less.
In order to be eligible for the Hawaii tax credit you have to have at least 1kW. It is then capped at $5,000 per 5kW of solar. So if you have a > system greater than 6kW that cap is $10,000. And if you have a system greater than 11kW the cap is $15k, and so on. We are happy to clarify anything about wither the Federal or State tax credits.