What Solar Tax Credits Are Available?
The Hawaii Clean Energy Initiative was launched in 2008 when the State of Hawaii and the U.S. Department of Energy signed a Memorandum of Understanding. This memorandum was a collaboration between the two & a diverse board of stakeholders to help aid in the reduction of Hawaii’s enormous dependence on imported fossil fuels. In fact, it has been estimated that 60-70% of the State of Hawaii’s future energy needs can be fulfilled by utilizing local, clean, renewable energy sources.
It is no secret that Hawaii residents pay the highest electricity rates in the nation. With the high cost that comes with living in paradise, a reprieve on excruciatingly high energy bills would be a nice & welcomed break. With solar power installation not only are you helping to provide the State of Hawaii with a clean energy alternative, thus reducing your own usage of imported fossil fuels, you are also able to save on utility bills while being eligible for some amazing solar tax credits!
Federal & State Solar Tax Credits
Federal Solar Investment Tax Credit:
This federal tax credit is often referred to as the ITC and states, should you have a photovoltaic solar power system installed in 2020 or after you qualify for a tax credit of up to 26% of the total cost of your solar power system. This includes, equipment, labor & permitting. For systems installed in 2023 the tax credit will reduce to 22%, and the program will be suspended beginning 2024.
For more information on how to claim the Federal tax credit, read this article: https://www.ecowatch.com/federal-solar-tax-credit-2654636766.html
Hawaii Renewable Energy Technologies Income Tax Credit:
This tax credits certifies that if you purchase & install a solar power system in the State of Hawaii you are eligible for a tax credit of 35% of the cost of your solar system or up to $5,000 once tax season rolls around. The great thing about this Hawaii State Solar Tax credit is it can also be received in conjunction with the Federal Solar Investment Tax Credit!
GEMS Loan Program:
This loan program makes it easy & simple for those with lower income to utilize solar power for their residence. If you are a Hawaii Electric Light Company customer that makes 140% below the area's median income you may qualify for this special loan program. The GEMS loan or Green Energy Market Securitization loan program grants qualifying participants the ability to install a solar power system for 0$ down & a small loan payment attached to your monthly electricity bill. The great thing about this is that the loan is not attached to your name and is instead attached to your electricity meter. This means that there are no credit requirements or credit checks needed! While there are a few stipulations such as, your solar system must provide enough power for your home as well as a 10% savings to your electricity bill after your loan payment is applied, it is a great opportunity for those looking to utilize solar power.
Why Install Solar In Your Home?
There are many incredible tax credits & incentives when it comes to having solar power installed in your home or business. From saving monthly on utility bills, to doing your part to help the environment & protect Hawaii’s precious ecosystem, solar power systems also greatly increase the overall value of your home! Trust us when we say... Going solar is where it is at!!