Best Solar Companies in Hawaii

Average solar panel costs in Hawaii range from $10,844 to $32,701. This doesn’t include a solar storage battery, which sometimes costs as much as the panels.

On the high end, Nychelle in Waianae spent $87,000 going solar, and Douglas in Hanalei spent $100,000 on a system.

The size of your solar panel system is a big factor in your total cost. It also depends on what incentives you’re eligible for, the condition of your roof and how much sunlight exposure it gets. A typical Hawaii household needs a system with a capacity of 5.1 kW to offset enough energy costs to make solar viable. Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel costs by system size in Hawaii

How can I pay for solar panel installation? 

Getting solar panels is similar to buying a car. You can pay cash, but many people finance their system through a solar loan. If you have enough savings to pay upfront, the biggest advantage of paying upfront interest charges. Leasing solar equipment is an attractive option for people who don’t want to get a loan or be responsible for maintaining a system.

Solar panels are designed to last 25 to 30 years.

Hawaii also has legalized power purchase agreements (unlike many other states). PPAs work very similarly to leases. The biggest downside to both is that you’ll be disqualified from many of the best financial incentives, like the 30% federal solar tax credit. It also might make your house harder to sell since a new buyer will have to take over the lease agreement.

» SOLAR PANELS: Lease vs. buy

Going solar in Hawaii

High retail electricity rates are a big reason Hawaii is such a good place for rooftop solar installations. The potential savings more than make up for the state’s limits on net metering compensation. Plus, statewide solar adoption rates have kept installation costs relatively low.

Residents may take advantage of several solar incentives in Hawaii.

The ITC expires at the end of 2025.

The federal solar investment tax credit (ITC) is still the biggest factor in reducing the cost of going solar in Hawaii. ITC credits 30% of the system’s total cost — including equipment, labor and permits —toward what you owe on federal income taxes.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the ITC reduces what you owe to $12,000. You don’t get these benefits automatically, though. You have to claim your solar equipment, labor and permits on your federal taxes for the same year you started using your system on Form 5695.

For a lot of homeowners, solar is worth it in Hawaii for the long term savings on energy bills. “Going solar is a no-brainer as an investment,” according to Jose in Haiku. “You get a huge tax break and save big bucks over time,” he told us. Another resident, Helen on the island of Molokai, said her electric bill is “non-existent” compared with what it was before switching to solar ($25 to $35 now, versus $170 before).

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Hawaii has the nation’s highest rate of existing rooftop solar capacity — much more than California, which has the second-highest rate. On average, homeowners can avoid $43,740 in total utility costs over 25 years. Your current electric bill is the starting point for assessing the financial benefits of transitioning to solar energy.

Your potential long-term savings more than makeup for the state’s limits on net metering eligibility and relatively low compensation rates for excess power generation.

Assuming an upfront purchase, it takes about 9.36 years to break even (when your savings with solar panels make up for the cost). Getting a loan to pay for solar panel installation is worth it as long as your loan payment is cheaper than what you’d be paying for electricity anyway. Then, once the loan is paid off, you essentially get “free” electricity.

» STILL NOT SURE? Solar energy pros and cons

In our experience, the best solar energy companies have a few things in common: great reviews, transparent contracts, reliable equipment and comprehensive warranties. Look for companies with plenty of experience installing solar panels in Hawaii. It makes it easier to navigate regulations, permits and available financial incentives.

• Check certifications: Hawaii solar installers are required to be licensed electricians. We also suggest hiring a company with NABCEP-certified installers. This shows you the company takes its business seriously.
• Read reviews: Complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews. Check out our Honolulu solar guide for city-specific recommendations.
• Compare quotes: You want a good deal, of course, but be cautious of companies that provide significantly lower estimates than others — this may indicate lower quality.
• Ask questions: Consider if you want a solar storage battery, electric vehicle (EV) charger or a monitoring system to ensure optimal output. It’s also smart to ask about critter guards in Hawaii. If you don’t understand something about the payment terms, warranty or ongoing services, ask.

Solar panels last a long time — you want to hire a well-established company that will still be around for system support for at least 25 years. 

» TIPS: Get the best solar quotes