The time is now to consider adding PV to your home or business. Take advantage of the current tax incentives that can lower the actual cost by over 50%, secure an interconnection agreement with HECO before further changes in rules make it more difficult and while equipment prices are at historic lows.
The Federal government offers Investment tax credits (ITC) of 30% of the total cost of a PV system for residential solar and an attractive accelerated depreciation for commercial projects. Hawaii also has incentives. For residential PV, the state has a 35% ITC with a $5,000 cap per “system” (defined as 5Kw) or a tax refund of up to $3,500. For commercial systems, Hawaii has a 35% ITC with a $500,0000 cap for each 1 MW system or a $350,000 refund.
While the amount of solar roof top systems has slowed in recent years due to changing interconnection guidelines by Hawaii Electric companies, there is a growing sense of urgency to install systems over the next couple of years because the Federal tax incentives are beginning to sunset.
The 30% ITC will be reduced to 26% in 2020, to 22% in 2021 and will stabilize at 10% in 2022 when the ITC will only be available for commercial installations.