Commercial Solar Incentives in Hawaii

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Renewable Energy Technologies Income Tax Credit (RETITC) 

The Renewable Energy Technologies Income Tax Credit (RETITC) is a Hawaii State tax credit that allows individuals or corporations to claim an income tax credit for up to 35 percent of the total cost for a solar PV system.

The Green Energy Money $aver (GEM$)

The Green Energy Money $aver (GEM$) On-Bill Financing Program offers an innovative financing option for small businesses and commercial tenants in Hawaii seeking to install energy improvements to reduce their utility costs. GEM$ features long-term financing, immediate bill savings, elimination of credit barriers and payments conveniently made on your monthly electric utility bill.

Honolulu City and County Real Property Tax Exemption

Commercial businesses in Honolulu County and City that installer renewable energy systems, including solar panels and battery storage, qualify for a 100% exemption from real property taxes. Further, any land on which the renewable energy systems are installed can receive an 80% exemption from real property taxes. 

Business owners may also take advantage of several federal solar incentives that could be combined with Hawaii current incentives. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system. 

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in Hawaii may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

Hawaii business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

Hawaii Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local Hawaii installer to see which incentives can contribute to your solar system. 

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