Hawaii Solar Panel Savings Calculator

Hawaii Solar Panel Savings Overview

Hawaii receives an average of 5.5 peak sun hours per day, making it an excellent state for solar energy production. With electricity rates averaging 44.5¢ per kWh — well above the national average of about 16¢/kWh — solar panels offer significant savings potential. The typical Hawaii homeowner with a 6kW system can expect to save approximately $3,800 per year.

Solar Energy Production in Hawaii

A standard 6kW residential solar panel system in Hawaii produces approximately 9,636 kWh per year. This accounts for a system efficiency factor of 80%, which includes panel degradation, inverter losses, and temperature effects. With 5.5 peak sun hours, Hawaii ranks among the top states in the country for solar production potential.

Hawaii Electricity Rates and Solar Context

The average residential electricity rate in Hawaii is 44.5¢ per kWh according to EIA data. This is significantly above the national average, which means solar panels pay for themselves faster in Hawaii. Every kilowatt-hour your panels produce replaces expensive grid electricity, amplifying your savings. With utility rates increasing annually, your solar savings grow each year.

Hawaii Solar Incentive Programs

35% state tax credit (up to $5,000). Net metering with export credit. Federal 30% ITC. All Hawaii residents are eligible for the federal 30% Investment Tax Credit (ITC), which reduces the cost of a solar system by 30% of the total installed price. Hawaii also offers avoided cost net metering, allowing homeowners to earn credits for excess solar energy sent back to the grid.

Net Metering in Hawaii

Hawaii has avoided cost net metering, which is a significant financial benefit for solar homeowners. Under the avoided cost model, you receive credit at the utility's avoided cost rate for excess energy, which is typically lower than the retail rate but still provides meaningful savings.

Best Cities for Solar in Hawaii

The best cities for solar panels in Hawaii include Honolulu, Pearl City, Hilo, Kailua, Waipahu. Solar production can vary by location within the state due to differences in cloud cover, local shading, and microclimates. Southern-facing roofs with minimal shading produce the most energy. Homeowners in Honolulu and Pearl City can typically expect production close to the state average of 5.5 peak sun hours per day.

How Hawaii Compares to Neighboring States

Compared to neighboring states, Hawaii (44.5¢/kWh, 5.5 sun hours) has better sun exposure and has higher electricity rates, making solar more attractive. See how solar savings compare in Alaska, and California.