If you live in Hawaii, you know how expensive electricity can be. With some of the highest rates in the country, your power bill probably feels like it keeps climbing. That is why so many homeowners are switching to solar to lower their costs and keep more money in their pockets.
Right now, solar panels cost in Hawaii around $3.39 per watt. While the upfront investment may seem high, it pays off faster here than in most other states. Since electricity rates are nearly three times the national average, every kilowatt of solar power you generate leads to serious savings.
Hawaii has been making big moves toward renewable energy. In 2024, the state reached 36% renewable energy, with rooftop solar leading the way. The long-term goal is 100% clean energy by 2045, making solar not just a smart financial move but also a step toward a more sustainable future.
More than 114,000 homes in Hawaii already rely on solar power. If you are thinking about making the switch, now is a great time to start saving.
Key Takeaways
- Solar panels in Hawaii cost about $3.39 per watt but offer faster payback due to high electricity rates.
- Hawaii has achieved 36% renewable energy with rooftop solar playing a major role in this progress.
- Your investment qualifies for federal tax credits and local incentives that significantly reduce overall costs.
Solar Cost by System Size in Hawaii
The size of your solar system plays a big role in how much you will spend. Most homeowners in Hawaii go with a 5 to 8 kW system, depending on their energy use.
As of 2025, solar panels cost in Hawaii about $3.39 per watt. That is higher than in most states, but so are your potential savings. With electricity rates nearly three times the national average, solar pays off faster here than almost anywhere else.
How Much Will Your Solar System Cost?
Here is a breakdown of what different system sizes cost before and after the 30% federal tax credit, along with estimated yearly savings:
|
System Size |
Cost Before Tax Credit |
Cost After 30% Tax Credit |
Est. Annual Savings |
|---|---|---|---|
|
3 kW |
$10,170 |
$7,119 |
$1,163 |
|
4 kW |
$13,560 |
$9,492 |
$1,550 |
|
5 kW |
$16,950 |
$11,865 |
$1,938 |
|
6 kW |
$20,340 |
$14,238 |
$2,325 |
|
7 kW |
$23,730 |
$16,611 |
$2,713 |
|
8 kW |
$27,120 |
$18,984 |
$3,100 |
|
9 kW |
$30,510 |
$21,357 |
$3,488 |
|
10 kW |
$33,900 |
$23,730 |
$3,875 |
That 30% federal tax credit helps bring solar within reach by reducing both equipment and installation costs.
Your actual price may vary based on your roof type, the panels you pick, and the installer you choose. Local companies often have different pricing than national providers, so it is worth comparing options.
With Hawaii's high electricity rates, solar panels pay for themselves faster than in most mainland states. That means more savings for you in the long run.
Factors That Affect Solar Panel Costs in Hawaii
Several factors shape the final price you will pay for solar panels in Hawaii. Your energy use, the type of panels you choose, and even where you live all play a role. Here is what to consider when budgeting for your solar system.
Home energy consumption
Your electricity usage directly impacts how many solar panels you need. Higher usage means more panels, which increases your total cost.
Checking your past electric bills gives you a clear picture of your energy needs. Most Hawaii homeowners use between 500-600 kWh per month.
Consider using a solar calculator to estimate your specific requirements. These tools look at your usage patterns and recommend an appropriate system size.
Related:Â What is the Average Monthly Electric Bill with Solar Panels?
Panel type and quality
Different solar panel types offer varying efficiency and price points. Your choice affects both upfront costs and long-term performance.
Monocrystalline panels cost more but convert more sunlight into electricity. These premium panels work well for homes with limited roof space.
Polycrystalline panels cost less but have slightly lower efficiency. Thin-film panels are the cheapest option but require much more space for the same output.
In Hawaii's strong sun, even lower-efficiency panels can perform well. Yet many homeowners choose higher-quality options for their durability in the island climate.
Labor costs and installation fees
Installation charges make up a significant portion of your total solar investment. These costs vary widely across different Hawaiian islands.
Oahu tends to have more competitive pricing due to more installation companies. Rural areas on other islands may charge more due to travel time and logistics.
The installer's experience and reputation also affect pricing. Established companies with proven track records often charge more than newer installers.
Permit and inspection fees
Every solar installation in Hawaii requires proper permits and inspections. These costs vary by county and add to your total project price.
Honolulu County charges different fees than Maui or Hawaii County. Your installer should include these fees in your quote and handle the paperwork.
Permit processing times can affect your installation timeline and potentially impact costs. Some areas experience backlogs that delay projects by weeks or months.
Related:Â Solar Interconnection: What You Need to Know
System size and energy requirements
The size of your solar system directly affects its cost. In Hawaii, most residential systems range from 5kW to 10kW.
A 5kW system in Hawaii costs about $16,950 before incentives, while a 10kW system runs around $33,900. The average cost per watt is around $3.39.
Larger systems cost more upfront but may provide better long-term value. They can generate excess energy for future needs or electric vehicle charging.
Installation complexity
Your roof's condition and design significantly impact installation costs. Steep, complex roofs require more labor and safety equipment.
Metal roofs typically cost less for installation than tile or slate. Older roofs might need repairs before panels can be installed safely.
Shading from nearby trees or buildings may require special equipment like microinverters. These additions increase costs but improve system performance.
Ground-mounted systems cost more than roof installations but might be necessary for some properties. They require additional materials and land preparation.
Related:Â
Hawaii Solar Incentives
The Federal Investment Tax Credit (ITC) reduces your solar costs by 30% through 2032. This credit applies to your federal taxes after installation.
Hawaii offers its own Renewable Energy Technologies Income Tax Credit. You can claim 35% of costs (up to $5,000) on your state taxes.
Net metering programs let you sell excess energy back to the grid. This arrangement creates credits on your bill for energy your system overproduces.
Hawaii's electricity prices rank highest in the nation, making solar savings more significant than elsewhere.
Some Hawaiian utilities offer additional rebates or special programs. Check with your local provider for current offers that might reduce your costs. For more details on available incentives, visit DSIRE, a database of state and federal solar incentives.
Related:Â Hawaii Solar Incentives, Tax Credits and Rebates
How to Save Money on Solar Panels in Hawaii
Solar panels in Hawaii cost around $3.39 per watt, but you can lower your costs with smart planning. Get multiple quotes from at least three companies to compare prices and avoid overpaying. Take advantage of tax credits, with 30% off from the federal credit and 35% up to $5,000 from Hawaii’s state credit.
Choose the right financing options. Cash purchases offer the most savings over time. Solar loans require little upfront but let you own the system. Leases and PPAs have no upfront cost but lower long-term savings. Improve energy efficiency before installing solar by upgrading to LED bulbs and better insulation, which helps you buy a smaller, more affordable system.
Maximize savings by ensuring south-facing roofs for better efficiency. Look for group discounts and price matching, and consider used panels for lower costs. After installation, regular cleaning keeps your system efficient and extends its lifespan.
Following these steps helps you cut costs and get the most out of your solar investment in Hawaii.
Related:Â How Much Money Do Solar Panels Save?
Is It Worth Going Solar in Hawaii?
With Hawaii’s electricity rates at around 34 cents per kilowatt-hour, which is three times the national average, solar can save you a lot of money. And with year-round sunshine, your panels will generate plenty of power, making it an even smarter investment.
Most homeowners in Hawaii recoup their solar costs in 5 to 7 years. After that, your system produces free electricity for decades. Plus, generous tax incentives help lower your upfront cost. You can claim a 30% federal tax credit and a 35% state tax credit up to five thousand dollars, significantly cutting your investment.
Solar energy now powers about 19% of Hawaii’s electricity, helping reduce the state's dependence on imported oil. According to Hawaii’s latest energy data, each solar installation helps reduce dependence on imported fuels, making solar not just a smart financial move but also a step toward energy independence.
Right now, solar panels in Hawaii cost around $3.39 per watt. A 5 kW system runs about $16,950 before incentives, but after tax credits, you could pay as little as $5,932. Given Hawaii’s high energy costs, solar is one of the best ways to take control of your electricity bills and invest in a cleaner future.
Contact Sunsoaked Solar today for a free consultation. Our experts will design a custom system that maximizes your savings and energy independence.
Frequently Asked Questions
Does Hawaii have a solar tax credit?
Yes, Hawaii offers a state tax credit of 35% of your solar installation costs. This Renewable Energy Technologies Income Tax Credit caps at $5,000 per system.
The federal government also helps you save. You can claim 30% of your solar costs through the Federal Solar Investment Tax Credit.
These incentives work together to cut your total installation price. You can use both credits when you file your taxes.
How much does it cost to install solar panels in Hawaii?
Solar panels in Hawaii cost about 3.39 per watt. This puts a typical 5kW system at around $16,950 before any tax credits.
After applying the federal tax credit, your 5kW system price drops to about $11,865. Larger homes needing 10kW systems can expect to pay around $33,900 before incentives.
Your final cost depends on your roof type and system size. The equipment brand you choose also affects your total price.
What is the average solar payback period in Hawaii?
Most Hawaii homeowners recoup their solar investment in 5-7 years. This quick payback stems from Hawaii's high electricity rates and abundant sunshine.
Your specific payback time depends on your energy use and system size. Homes that use more electricity often see faster returns on their investment.
After your payback period, you'll enjoy free electricity for decades. This makes solar one of the best home investments in Hawaii.
What financing options are available for solar panel installations in Hawaii?
Cash purchases give you the biggest long-term savings on your solar system. You pay upfront but own the system and get all tax benefits.
Solar loans let you go solar with little or no money down. You make monthly payments while still owning the system and claiming tax credits.
Lease options require no upfront cost, but you won't own the system. The solar company owns the panels and you buy the power they produce.
How long do solar panels last in Hawaii?
Your solar panels will likely last 25-30 years in Hawaii. Most manufacturers offer warranties that guarantee performance for at least 25 years.
Hawaii's climate can be tough on equipment. Salt air in coastal areas may cause faster wear on some components.
Regular cleaning helps your panels last longer. Most systems need minimal maintenance beyond occasional checks and cleaning every 6-12 months.