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Are Solar Panels Worth It In Hawaii?

Are Solar Panels Worth It In Hawaii EcoGen America

If you're a resident of Hawaii and considering making the switch to solar panels, you're likely wondering if it's worth the investment. The short answer is yes. Hawaii is one of the best states in the US for solar energy production, thanks to its sunny climate and high electricity rates.

In this article, we'll delve into the specifics of why solar panels are worth it in Hawaii.

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Firstly, let's talk about the cost of electricity in Hawaii. According to the US Energy Information Administration, the average retail price of electricity for residential customers in Hawaii was 32.74 cents per kilowatt-hour (kWh) in February 2021, which is almost triple the national average. With electricity rates this high, it's no surprise that many residents are turning to solar power as a way to save money on their energy bills.

Hawaii Solar Incentives

In addition to the high cost of electricity, Hawaii also offers a number of incentives and tax credits for residents who install solar panels. For example, the state's Renewable Energy Technologies Income Tax Credit allows taxpayers to claim a credit of 35% of the cost of equipment and installation for solar water heating, photovoltaic (PV) systems, and wind systems. There's also the Federal Solar Investment Tax Credit, which allows homeowners to deduct 30% of the cost of their solar panel system from their federal taxes.

But what about the upfront cost of installing solar panels? While it's true that the initial investment can be significant, the long-term savings are well worth it. The average cost of a 5kW solar panel system in Hawaii is around $14,000. However, with incentives and tax credits factored in, the net cost can be as low as $7,000. And once the system is up and running, homeowners can save an average of $1,100 per year on their electricity bills. This means that the system will pay for itself in just a few years, and the savings will continue for the life of the panels (which is typically 25-30 years).

Other Factors To Consider

Of course, there are some factors to consider before installing solar panels. For example, if you live in an area with a lot of shade, your panels may not produce as much energy as they would in a sunnier location. Additionally, if your roof is old or in need of repair, you may need to factor in the cost of a new roof before installing solar panels.

Another consideration is whether to lease or purchase the solar panel system. Leasing can be a good option for those who don't want to make a large upfront investment, but it's important to read the fine print and understand the terms of the lease agreement. For example, some leases may include a clause that requires you to purchase the system at the end of the lease term, which can be an unexpected expense.

Going Solar In Hawaii

In conclusion, solar panels are definitely worth it in Hawaii. With high electricity rates and a range of incentives and tax credits available, homeowners can save a significant amount of money on their energy bills. And while the upfront cost of installing solar panels can be substantial, the long-term savings make it a smart investment for any homeowner. Just be sure to do your research and work with a reputable solar panel installer to ensure that you get the best possible system for your needs.

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