Solar in Hawaii: Smart Export, CGS Plus and self-supply reality

Market snapshot

Solar in Hawaii by the numbers

Installed capacity

1,900 MW

Homes powered

285K

Solar share of electricity

20%

Solar jobs in state

2,500

Typical cost per watt

$3.60

US ranking

#27

Hawaii has the highest per-capita residential solar penetration in the US because of extreme electric rates (over $0.40 per kWh at HECO) and strong sun hours. Market structure has evolved through multiple regime changes since 2015: NEM closed, CGS and CGS Plus added, Smart Export added, Self-Supply as a default. The current economics favour storage-attached Smart Export systems for most residential installations.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in Hawaii

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, Hawaii has these state and local programmes.

Hawaii Renewable Energy Technologies Income Tax Credit

35 percent state income tax credit on residential solar systems, capped at $5,000 per system. Stacks with the 30 percent federal credit. The combined 65 percent effective tax credit on install cost is among the strongest in the US.

Smart Export (storage-attached programme)

HECO's current preferred programme for new residential solar: solar + battery storage with grid exports credited at a time-of-day rate during off-peak hours (4pm to 9am Oahu). Peak-hour (9am to 4pm) exports are not compensated. The practical effect: systems designed to self-consume during peak hours and export stored energy at off-peak times.

Customer Grid Supply Plus (CGS Plus)

An alternative programme that caps grid export availability based on circuit capacity; new enrolment depends on local circuit availability. Credit is at a tariff rate (approximately $0.14 per kWh), substantially below retail.

Self-Supply option

No grid export permitted; all generation must be consumed on-site or stored in battery. This option works for homes with high daytime load (EV charging, pool pumps) and is simplest for permitting purposes. No programme caps apply.

Permits and interconnection

Permits and interconnection

Permit timelines in Hawaii vary by island and jurisdiction. City and County of Honolulu commonly take 4 to 8 weeks for residential; Maui County 4 to 10 weeks; Big Island (Hawaii County) 3 to 6 weeks. SolarAPP+ is not accepted on any island. Interconnection with HECO/MECO/HELCO typically runs 4 to 12 weeks post-install depending on circuit review requirements.

Running a solar company here

Running a solar company in Hawaii

Running a solar company in Hawaii means operating in the most mature residential solar market in the US with the most complex regulatory structure. The best HI operators are fluent in the Smart Export vs CGS Plus vs Self-Supply trade-offs, have in-house circuit availability research (CGS Plus enrolment depends on local circuit capacity which varies by neighbourhood), and specialise by island because logistics costs differ substantially between Oahu, Maui and Big Island. Shipping panels and racking from mainland to Hawaii adds meaningful cost; local inventory relationships matter.

Cities we cover

Solar in Hawaii metros

• Solar in Honolulu

Questions people ask

Solar in Hawaii: FAQ

Does Hawaii have net metering?

Not for new customers since 2015. Current residential solar customers at Hawaiian Electric choose among Smart Export (storage-attached, time-of-day export credit), Customer Grid Supply Plus (CGS Plus, limited export cap at tariff rate), or Self-Supply (no grid export). Pre-2015 customers are grandfathered on retail NEM.

What is the Hawaii state solar tax credit?

35 percent of installed system cost, capped at $5,000 per system. Non-refundable but carries forward. Stacks with the 30 percent federal Residential Clean Energy Credit. The combined effective 65 percent tax credit is among the strongest in the US.

How much does solar cost in Hawaii?

Residential solar in Hawaii averages around $3.60 per watt installed, higher than mainland US because of shipping and labour costs, meaning a typical 7 kW system costs about $25,200 gross. After the 30 percent federal tax credit and the 35 percent HI state credit (capped $5,000), net cost is approximately $12,500 to $14,500.

Is solar worth it in Hawaii?

Yes substantially. The combination of the highest US electric rates (over $0.40 per kWh), the generous state tax credit, and the federal credit makes residential solar payback typically 5 to 8 years for Hawaii homes with suitable roofs. Among the strongest payback economics in the US despite the high install cost.