Best Solar Companies in Honolulu, HI

Solar panel costs in Honolulu

A typical solar panel installation costs anywhere from $11,805 to $33,728 in Hawaii. Prices in Honolulu are comparable, ranging from $11,533 to $32,950.

This doesn’t include an energy storage battery, which sometimes costs as much as the panels: $7,000 to $18,000. A battery lets you store excess energy generated during the day and use it when your panels aren’t producing, like at night or during outages. It’s worth considering if your area gets frequent blackouts or if you don’t opt into Honolulu’s net metering program.

System size is the other major solar cost factor. The average Honolulu household needs a system with a capacity of 5.1 kW (kilowatt) to fully offset their electricity costs. Depending on how much energy you and your family use, you might need a smaller or larger one.

Average total solar installation costs by system size in Honolulu

How can I pay for solar panels?

Several local programs make it easy to finance solar panels: The City of Honolulu offers loans up to $300,000 with 0% interest and terms up to 20 years. The Hawai’i Green Infrastructure Authority, Solar for All and the Solar HUI Investment Fund also help residents pay for clean energy upgrades.

In general, solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.

Solar leases are a good option if you have limited savings and don’t want to take on debt. A potential downside to leasing is that you won’t be eligible for the federal solar tax credit. Similar to leasing, a power purchase agreement (PPA) lets you get the benefits of solar without actually owning the equipment.

» SOLAR PANELS: Buy vs. lease

Is solar worth it in Honolulu?

Solar panels are generally worth it in Hawaii if you like the idea of lowering your monthly utility bills. On average, Honolulu homeowners with solar panels can avoid $112,468 in total utility costs over 25 years.

High retail electricity prices are a key reason Hawaii is such a good place for people to install solar panels on their roofs. The potential savings are so clear that they more than make up for the state’s limits on net metering eligibility and relatively low compensation rates for excess power generation. One resident, Chris in Oahu, said their monthly utility bill went from $200 to $25 after going solar.

The main drawback is the high upfront cost of purchasing and installing the panels and equipment. Assuming an upfront purchase, it takes about 2.51 years to break even (when your savings with solar panels make up for the cost). On the bright side, solar loans, leases and other programs let you go solar with minimal upfront costs.

Considering Hawaii averages 5.5 to 6.5 peak sun hours each day, switching to solar is also worth considering for the environmental benefits. Another resident, Thomas in Honolulu, put it this way: “I live in Hawaii, so why put all this beautiful sunlight to waste?”

We suggest using NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house. Project Sunroof is a reliable online solar savings estimator. You can also use this worksheet to calculate the total output capacity and cost of your future system.

Potential roof problems

As a rule of thumb, if your roof is more than 10 years old, consider fixing it before going solar. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels again. This is an expensive and frustrating process.

» SHOULD YOU: Replace your roof before going solar?

How to find a reputable solar company in Honolulu

In our experience, the best solar companies in Hawaii have a few things in common: lots of experience, reliable equipment and transparent contracts. Watch out for door-to-door solar scams that attempt to gather your personal information, misleading claims, false advertising and aggressive sales tactics.

• Check certifications: In Hawaii, general engineering contractors are automatically licensed to install solar systems. You can verify a contractor's license through the state's Professional and Vocational Licensing Division. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• Read reviews: Avoid companies with recurring complaints about misleading sales tactics, equipment failures, billing issues and lack of communication.
• Ask questions: Do you need a solar storage battery, electric vehicle (EV) charger or critter guards? How does this affect overall pricing? What if your system needs maintenance? If you don’t understand something about the payment terms, warranty or ongoing services, ask for clarification.

» TIPS: Get the best solar quotes

Residential solar panel incentives in Honolulu

The 30% federal solar investment tax credit (ITC) is a significant incentive for most homeowners. It reduces your federal tax liability by 30% of how much it costs to install solar panels. You can combine the ITC with local solar incentives in Hawaii to maximize savings.

For instance, Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC) lets individuals and businesses claim credits for renewable energy installations, including 35% of the cost for solar installations (capped at $2,250 for single-family, $350 per unit for multi-family and $250,000 to $500,000 for commercial).