Solar in Hawaii costs about $3.14 per watt, so the typical 7.49 kW system runs about $23,519 before incentives. Against 43.51¢ power, the highest rate in America, how fast it pays back depends on how much of its power your home uses while the panels make it. Hawaii’s state tax credit can also take off 35%, up to $5,000.
See what timing does to your payback
In Hawaii, when your household uses power matters as much as how much the panels make. Your ZIP code shows local prices and installers.
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43.51¢, 32.9¢ or 13.5¢: what one Hawaii kilowatt-hour earns
New Hawaiian Electric systems connect under Smart Renewable Energy Export, its name for the Smart DER Export tariff (in place since April 1, 2024, Docket 2019-0323). What a kilowatt-hour of your power is worth depends on where it goes and when.
The order holds on every islandMaui and Hawaii Island run their own schedules under the same framework. Across islands, self-use beats evening export beats daytime export, roughly 3 to 1 end to end.
Kauai is a separate caseKauai’s cooperative, KIUC, sets its own solar terms. None of the Hawaiian Electric figures above apply there.
Timing, the tax credit and the battery set Hawaii’s payback
How long the typical 7.49 kW system takes to pay for itself depends on four things: whether the 35% state tax credit reaches you, how much of its 12,156 kWh a year your home uses as it is made, what your island pays for exports, and whether you add a battery. Power you use at home saves about 43.51¢ a kWh. A household that exports its surplus in daylight earns closer to 13.5¢ on it, so payback takes longer.
Our Hawaii worth-it guide works through the payback with and without the state credit, with yearly owner costs included.
Move your loads into the sunRun the water heater, the laundry and car charging while the panels produce. Or add a battery that moves surplus into the 32.9¢ evening window. In Hawaii a battery has the best chance anywhere to pay for itself: it moves surplus worth 13.5¢ in the day into evening use worth up to 43.51¢. Hawaiian Electric’s BYOD Plus also pays $400 per committed kW up front (for example $2,000 for 5 kW) plus about $52 a month, if the utility can use the battery two hours a day for five years. It still deserves its own line-item comparison.
Use the rate on your own billThe 43.51¢ statewide average is ranking context, not the rate on a Hawaiian Electric bill. Each island files its own residential rate. Take the per-kWh figure from your own bill when you check what a quote says you will save.
Hawaii system prices by size, and what each one makes
Hawaii households use just 495 kWh a month, the lowest in the nation, yet pay about $206 a month, nearly the highest. The typical system is 7.49 kW for about $23,519 at $3.14 per watt, the median size Hawaii homeowners installed in 2025 (Berkeley Lab, 316 systems). The price is tied 45th lowest of 51 because of island logistics. Against a 43.51¢ rate, that barely matters. For the national picture, see our state-by-state solar pricing.
Gross prices at $3.14 per watt, before incentives. Output uses 1,623 kWh per kilowatt a year in Honolulu-class sun. Real quotes vary by island, roof and installer.
Grandfathered, Smart DER or KIUC: the Hawaii rules that apply to you
No federal credit for a system you ownThe federal residential credit is $0 for host-owned systems whose installation is completed after December 31, 2025. With a lease or PPA, legal statewide, the owner can claim the Section 48E credit. That route is worth pricing, though at Hawaii’s payback speed, owning usually still wins.
Net metering closed in October 2015, CGS in November 2017, and CGS Plus and Smart Export on March 29, 2024. Holders keep their terms, but changes to the system can put them at risk. Get written confirmation from your utility first.
New interconnections use time-varying export credits. Your installer should show the current export schedule for your island, not Oahu defaults.
None of the Hawaiian Electric framework applies. KIUC’s cooperative programs are their own conversation.
Four ways to turn Hawaii’s best-in-class payback into a mediocre one
Skip or rethink the deal if any of these describe it:
- An untimed, oversized array. Surplus flowing out at 13.5¢ at midday is the one way to make Hawaii solar mediocre. Size to your usage and shift your loads first.
- A proposal quoting Oahu rates on another island. Each island’s schedule differs. A quote that does not name your island’s current figures is not a quote.
- Touching a grandfathered system casually. Legacy net metering from 2015 cannot be replaced. No upgrade is worth losing it without written utility confirmation of what happens.
- Renting, or moving before payback. Even Hawaii’s math needs you there for the payback window.
Price a system built for island rates
Your island, your usage hours and your roof set the speed. Enter your ZIP code and we will time the math to your household.
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Further reading before you price a Hawaii roof
Frequently asked questions
How much do solar panels cost in Hawaii in 2026?
About $3.14 per watt installed, tied 45th lowest of 51 (EcoGen Solar Cost Index, September 2026 Edition). The typical system is 7.49 kW, the median size Hawaii homeowners installed in 2025, about $23,500 before incentives.
What is the solar payback period in Hawaii?
There is no single Hawaii number. Four things set it: whether the 35% state tax credit reaches you, how much of your solar power you use at home as it is made, your island’s export credits (13.5¢ in the day and 32.9¢ in the evening peak on Oahu), and a battery, which has its own price. Our Hawaii worth-it guide works through the payback with and without the state credit, with yearly owner costs included.
Does Hawaii have net metering?
No. Net metering closed to new customers in October 2015, CGS closed in November 2017, and the successor CGS Plus and Smart Export programs closed in March 2024. New interconnections use Smart Renewable Energy Export (the Smart DER Export tariff), which credits exports at time-varying rates, about 13.5¢ daytime and 32.9¢ evening peak on Oahu.
Is a battery worth it in Hawaii?
Usually, yes, and on economics alone. Storage moves surplus from the 13.5¢ daytime credit into self-use at 43.51¢ or the 32.9¢ evening window, the largest swing in the country.
Are the rules different on Kauai?
Completely. Kauai is served by the KIUC cooperative, which sets its own solar programs outside the Hawaiian Electric Smart DER framework. Kauai households should work from KIUC’s current terms, not the Oahu figures on this page.
How we calculate these costs
Cost figures use Hawaii’s entry in the EcoGen Solar Cost Index (September 2026 Edition): $3.14 per watt. The 7.49 kW typical size is Berkeley Lab’s 2025 median for Hawaii single-family installs (316 systems). The typical system makes 1,623 kWh per kW a year. This page gives no single statewide payback, because it depends on the state tax credit, home use, island export credits and any battery. The Hawaii worth-it guide shows the worked examples. Export figures are for Oahu; island schedules vary.
Sources (7)
- Hawaii Public Utilities Commission, Docket 2019-0323: Smart DER Framework (accessed June 11, 2026): puc.hawaii.gov
- Hawaiian Electric, Smart DER Export Program Rate Sheet (issued February 1, 2025): hawaiianelectric.com
- U.S. Energy Information Administration, Electric Power Monthly, residential price by state, 12-month average August 2025 to July 2026: eia.gov
- U.S. Energy Information Administration, Form EIA-861, 2024: eia.gov
- U.S. Census Bureau, American Community Survey, 2024: census.gov
- IRS, One, Big, Beautiful Bill Provisions (Public Law 119-21): irs.gov
- DSIRE, Third-Party Solar PV Power Purchase Agreement Policies (May 2026): ncsolarcen-prod.s3.amazonaws.com
