Energy costs are skyrocketing in Hawaii, and on Oahu in particular, where the price of electricity is about three times the national average. The state, however, boasts an abundance of sunshine and alluring islands, making solar panels a viable and cost-efficient method of getting energy, especially when considering Hawaii’s solar panel tax credits are available.
Not only are solar panels worth installing, the price of purchasing them has fallen by more than 80% over the last decade. When paired with Hawaii having a PV tax credit, it’s an ideal time for solar-buyers to gain energy independence and break free from fossil fuel reliance while saving money. There’s also a second tax credit that can be obtained through filing with the federal government, providing even more financial incentive to make a switch sooner rather than later.
Another perk those on Oahu get with solar panels: KumuKit™ offers integrated smart-battery technology. The batteries enhance the PV system capabilities by making it possible to store your own PV energy. There’s even an emergency back-up feature to help keep you powered when there is a grid outage in your area. The batteries are even preprogrammed to adapt to evolving energy requirements.
Unlike in other parts of the United States, Hawaii has been especially dependent on outside help for its energy needs, which is why there’s such a dramatic premium paid on Oahu and the other islands for electricity. The state doesn’t produce its own natural gas or coal, making it beneficial for government officials to provide solar panel tax credits for residents of Hawaii.
The state of Hawaii’s PV tax credit works like other kinds of tax credits, meaning you pay for the expense up front and then you’re credited when you file your taxes in the spring. Through the Renewable Energy Technologies Income Tax Credit (RETITC), residents of Hawaii can get a 35% state solar tax credit when purchasing their residential solar system. The maximum credit available through the RETITC is $5,000 per purchaser.
Buyers can also qualify for a 26% federal tax credit through the end of 2022, and then that percentage is set to decrease to 22% in 2023 until expiring at the end of that year unless the federal government makes changes to the program. Avoid the uncertainty of future federal tax credits and make now the ideal time to pair the federal savings with the Hawaii solar panel tax credit. The federal savings comes when filing your federal return when completing your taxes.
The federal funds available are set to begin decreasing at the start of 2023, as the allotted federal tax credit amount begins to diminish. But there’s a caveat, as residential solar systems installed prior to Dec. 31, 2022 will still qualify for the full federal amount.
The same rules apply for getting solar hot water, since Hawaii also boasts a tax credit for solar water heaters. Just like with the solar panels mentioned above, residents of Hawaii can get a 35% tax credit when filing their taxes. The savings, however, is capped at $2,500 for solar water heaters. Although, a one-time $750 rebate is available to existing homes built in 2009 or before.
Contact KumuKit today if you’re ready to take advantage of Hawaii’s solar tax credit, saving you money while making you more energy independent.