Incentives & Rebates for Residential PV
Savings upon savings with tax credits, incentives, and rebates for your solar PV installation
Sunetric is a full-service solar PV system provider — in addition to handling evaluation, consultation, system design, installation, and followup, our team is staffed with professionals experienced in maximizing your tax benefits. We’ll prepare your tax rebate paperwork, walk you through the advantages of the incentives, and make sure your system is saving you as much money as possible.
Available tax credits
Both the Hawaii state and United States federal governments offer generous tax credits for new solar PV system installations. The federal tax credit is 30 percent of a system’s installed cost and applies to all systems installed before December 31, 2016. Please note that there is no longer a $2,000 cap on qualified solar electric property expenditures for systems installed after December 31, 2008.
35% Hawaii State Tax Credit
The Hawaii Energy Tax Credit allows solar customers to claim an income tax credit of 35% of the cost of equipment and installation of a solar photovoltaic system. A credit that exceeds the taxpayer’s income tax liability may be carried forward to subsequent years until exhausted. Credits are capped based on property and system type as follows:
- Single-family PV installations: credit is capped at $5,000 per system
- Multifamily PV installations: credits for multi-family PV systems are capped at $350 per system
24.5% Hawaii State Refundable Tax Credit
The Governor recently signed Senate Bill 464, which makes the state renewable energy credit refundable for taxpayers who agree to accept a lower credit of 24.5%.
Tax Forms for Systems Installed BEFORE July 1, 2009
- State of Hawaii Department of Taxation Form N-334 Renewable Energy Technologies Income Tax Credit (PDF)
- State of Hawaii Department of Taxation Form N-334A (Information Statement for Renewable Energy Technologies Income Tax Credit) (PDF)
- State of Hawaii Department of Taxation Form N-334 Ins (Instructions for Form 334) (PDF)
Tax Forms for Systems Installed AFTER July 1, 2009
- State of Hawaii Department of Taxation Form N-334 Renewable Energy Technologies Income Tax Credit (PDF)
- State of Hawaii Department of Taxation Form N-334A (Information Statement for Renewable Energy Technologies Income Tax Credit) (PDF)
- State of Hawaii Department of Taxation Form N-334 Ins (Instructions for Form 334) (PDF)
30% Federal Tax Credit
The Energy Policy Act of 2005 (H.R. 6, Sec. 1335) established a 30% tax credit for the purchase and installation of residential solar electric systems. Individuals may take a 30% credit for each photovoltaic system. The credit is scheduled to expire at the end of 2016. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. To be eligible for the credit, a system must be "placed in service" or activated on or after January 1, 2009, and on or before December 31, 2016.
30% Federal Tax Grant
Currently federal incentives are available as either a 30% tax credit or as a 30% cash grant, but the cash grant program expires at the end of 2010.
Please Note
Neither Sunetric nor its employees are tax professionals. The tax information provided herein is provided as a guide only; please consult your tax advisor for official, professional guidance.
