Financial Incentives for Saving Energy in Hawaii

Tax Credits, Rebates and Low-Interest Loans in the Aloha State

Residents of Hawaii who want to install a renewable energy system or make their homes more energy efficient can take advantage of various financial incentives. There is a state income tax credit for a solar or wind system. Utility companies offer rebates on energy efficient appliances and water heaters, and loan programs to finance the cost of installing a solar water heating system.

Hawaii income tax credit for solar and wind systems

When you install a solar or wind energy system at home, you can claim a credit on your Hawaii state income tax return. The credit is 35% of the cost of the equipment and installation for a solar thermal or solar photovoltaic system and 20% of the cost for a wind system. The maximum allowable credits are: $2,250 for a single family residence and $350 per unit for a multi-family residential property for solar thermal systems; $5,000 for a single family residence and $350 per unit for a multi-family property for solar photovoltaic systems; $1,500 for a single family residence and $200 per unit for a multi-family property for a wind powered energy system.

To claim the tax credit for a solar or wind energy system, you need to complete Form N-334, Renewable Energy Technologies Income Tax Credit, when you prepare your Hawaii individual income tax return. The credit from Form N-334 is carried over to line 18 on Form N-13, or line 12 of Schedule CR for Form N-11. If the credit exceeds your tax liability, you can carry over the unused portion of the credit and apply it against your tax in the following years until it is exhausted.

Rebates on appliances

Through its Energy$olutions program, the Hawaiian Electric Company offers Oahu residents rebates on various Energy Star® appliances you purchase for your home. A new room air conditioner qualifies for a $75 rebate. If you have your central air conditioner serviced you can receive a $50 rebate. Clothes washers, dish washers and refrigerators earn rebates of $50 and a ceiling fan is eligible for a $40 rebate.