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Are Solar Panels Worth It In Hawaii?

Q: Should I get solar in Hawaii?

Yes, getting solar in Hawaii is generally a good decision. With some of the highest electricity rates in the U.S. and abundant sunlight year-round, solar panels offer significant savings on energy bills. State and federal incentives also reduce the upfront cost, making solar an attractive long-term investment.

Q: What is the average cost of solar panels in Hawaii?

The average cost of installing solar panels in Hawaii is between $15,000 and $25,000 for a standard 6 kW system before incentives. After applying state and federal tax credits, the cost can be significantly reduced.

Q: Why do so many houses in Hawaii have solar panels?

Many houses in Hawaii have solar panels because of the state’s high electricity costs and abundant sunshine. Solar energy helps homeowners drastically reduce their energy bills. Additionally, government incentives and Hawaii's push toward renewable energy make solar more accessible and financially beneficial.

Q: How long do solar panels last in Hawaii?

Solar panels in Hawaii typically last between 25 to 30 years . Although Hawaii’s tropical environment is sunny, occasional storms may cause wear over time. With proper maintenance, solar panels can perform efficiently for decades.

Q: Why is Hawaii electricity so expensive?

Hawaii’s electricity is expensive primarily because the state relies heavily on imported fossil fuels, particularly oil, for power generation. The cost of importing fuels and the state’s relatively small energy market contribute to Hawaii having some of the highest electricity rates in the U.S.

By Stephen Kelly | July 5, 2024 | 6 min read

Written by Stephen Kelly
Solar Energy Expert

Updated September 30, 2024 | 6 min read

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).

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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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Should I get solar in Hawaii?

What is the average cost of solar panels in Hawaii?

Why do so many houses in Hawaii have solar panels?

How long do solar panels last in Hawaii?

Why is Hawaii electricity so expensive?

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Stephen Kelly

Stephen Kelly, luminary in the solar industry for over 10 years, stands as a respected author and frequent speaker at clean energy conferences throughout the United States. His commitment to America on clean energy positions him as a trusted authority driving positive change.