Adding solar panels and switching rate plans can lower your Hawaiian Electric electric bill
Updated: October 22, 2020Installing solar panels can help reduce your HECO bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for Hawaiian Electric customers?
Yes. With the state’s hefty $2,250 solar tax credit, property tax exemption, and low income on-bill repayment solar loan availability, home solar panels make a lot of sense for Hawaiian Electric customers. HECO also allows you to at least get some credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits, while accrued at a lower rate than you pay for electricity, roll over to the next month’s bill.
Does Hawaiian Electric offer net metering credits for exported solar power?
No, Hawaiian Electric does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.
What incentives, tax credits, and rebates are available to HECO customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a HECO customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,395 |
|
Customer Grid-Supply Plus - Hawaii Island
(State)
The export credit is fixed through October 20, 2022 |
Varies |
|
HECO Oahu Battery Bonus Program
(State)
Available to residents of Honolulu County who install battery storage systems alongside solar panels. The current incentive is $850 per kW of committed capacity during a 2-hour daily period. The commitment period is 10 years. For systems activated after June 1, 2022, HECO will pay an additional fixed rate for exported energy during the first three years, as well as a $5/kW monthly payment during the entire 10-year period. |
Varies |
|
Hawaiian Electric Companies - Customer Self-Supply
(State)
Customers don't export any power to the grid but they can incorporate battery storage. All electricity produced must be used or stored. |
Varies |
| Solar and Wind Energy State Income Tax Credit (Personal) (State) | -$5,000 |
| TOTAL | -$11,395 |
*Based on 9.12 kW system, average installation cost $26,315
How much does installing solar panels save the average Hawaiian Electric residential customer?
If you input the details for a HECO customer with a power bill of $320 per month into the best online solar panels calculator, it tells you that you need a 9.12 kW solar system that will produce 13,203 kWh per year and that this system will return the owner a $64,043 profit after repaying the cost of the system.
The solar savings possible for you as a HECO customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical HECO customer with a $320 per month electric bill prior to solar and who installs a 9.12 kW solar system.
How much do residential solar panels cost for HECO customers?
Showing data for:
Prices based on a 8.0kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$49,532-$60,539
Payback period
5.5-6.7 years
Recommended size for the selected utility bill
8.0kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.12 kW |
|
Annual Power Generation 13,203 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.6% |
|
Gross cost $26,315 |
|
Total Upfront Incentives and Rebates -$11,842 |
|
Net Cost of System after rebates and incentives $14,475 |
|
Total Cost of Utility Power Avoided over 25 years $78,518 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Hawaiian Electric customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Hawaiian Electric customer installing a 9.12 kW solar system on their property:
A solar system generating 13,203 kWh per year will save you money AND make the world a nicer place
Saves you
$2,562
on average per year
Reduces CO2 emissions
6.54
tons per year
Equivalent to planting
46 trees
per year
Equivalent to driving
14,458 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Hawaiian Electric customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.89 per watt or $14,475 for a standard 9.12 kW solar system after the customer claims the 30% federal solar tax credit.