On the Bright Side
Solar systems are sustainable investments amid changing tax credits and utility costs
By: Darlene Dela Cruz
Sep 1, 2026
Hawai‘i ranks highest in the nation for residential rooftop solar adoption per capita, the Office of the Governor reports. Recent electricity rate hikes and shifting state incentives are putting solar in the spotlight and more homeowners are encouraged to explore its sustainable advantages.
A bill passed in March majorly impacted the state’s Renewable Energy Technologies Income Tax Credit (RETITC), which has been a helpful incentive for homeowners to install solar systems. The bill, now Act 24, imposed an immediate $40-million cap on the state’s solar tax credit with a phased timeline to eliminate the credit altogether in 2030.
Community and industry advocacy resulted in Executive Order 26-02 issued by Hawai‘i Gov. Green in June. This Executive Order “preserves confidence in Hawaiʻi’s clean energy market and helps prevent disruption to our local solar industry,” the Office of the Governor said in an email statement to Ku‘u Home.
“Projects placed in service in calendar year 2026 would not be subject to the $40 million annual cap on allowable credits, provided the system was completed before May 21, 2026. In practical terms, this means solar and clean energy projects already in development before the cutoff date are protected from losing expected tax credits due to the cap.”
Local solar company RevoluSun says Executive Order 26-02 protected “a credit that has helped tens of thousands of Hawaiʻi families lower their energy bills.”
Hawaiian Electric forecasted up to a 30% increase in residential electric costs statewide due to rising fuel prices. According to Kim Keahiolalo, a member of the Hawaii Solar Energy Association, “for homeowners who already have solar, today’s energy landscape makes your system more valuable than ever.”
“Adding battery storage can increase the value of an existing solar system by allowing you to store excess solar energy for use at night, during outages or during periods of higher electric rates,” says Keahiolalo, who works as Canadian Solar’s regional sales manager, Power Electronics, North America, MSS Business Unit. “A properly designed solar and battery system can reduce dependence on the utility, provide backup power and create significant savings over time,” she adds.
Optimize Your Solar System
“Although Hawai‘i enjoys sunshine year-round, shorter days and occasional winter weather can slightly reduce solar production,” Keahiolalo says.
Here are her tips to maximize energy savings and lower utility costs with solar after summer:
Run dishwashers, laundry machines, pool pumps and other heavy-duty appliances during daylight hours.
Homeowners with battery storage should fully charge their batteries during the day for an off-grid power reserve to use in the evening.
Keep solar panels clean and professionally maintained.
Switch-off idle electronics and use energy-efficient lighting and appliances.
Enroll in a grid services program and make sure your battery settings are optimized for the program’s requirements.
Visit the Hawai‘i State Energy Office for more tips and solar news: energy.hawaii.gov
This story appears in the September/October 2026 print issue of Ku‘u Home magazine.