Important Hawaiʻi Solar Tax Credit Update

SB3125 / Act 24 may affect solar and battery projects already installed, contracted, or underway in 2026.

Storm Preparedness

Prepare your solar, battery, and Tesla Powerwall monitoring before severe weather reaches your area.

Locally owned solar, battery, and energy services since 1993

Power Your Hawaii Home with Solar, Battery Backup, and Energy Independence

Since 1993, Alternate Energy Hawaii has helped local families and businesses lower electric bills, add battery storage, and build reliable energy systems designed for island life.

(808) 842-5853 Pearl City, Oahu based • Hawaii license C-26041
  • Locally owned since 1993
  • 59+ MW installed
  • Licensed Hawaii contractor C-26041
  • Tesla Premier Installer
  • Pearl City, Oahu based
Alternate Energy Hawaii solar energy image
59+ MW Solar panels installed powering 10,000 homes!
Locally Owned Since 1993

Powering Hawaii’s Future with Residential Solar and Sustainable Energy

For over 30 years, Alternate Energy has helped Hawaii families and businesses embrace sustainable energy solutions with solar, HVAC, roofing, EV charging, and more—all installed by our in-house team. From photovoltaic panels delivering clean electricity to advanced rooftop energy systems designed for residential solar projects, discover why we’re consistently voted Oahu’s best in solar, air conditioning, and plumbing.

Alternate Energy
Built for Every Home & Business

Residential and Commercial Solar Solutions That Fit Your Needs

We offer premium service combined with premium products designed to maximize solar efficiency and deliver reliable clean electricity. Whether you’re exploring residential solar or large-scale commercial solar projects, our tailored approach ensures you get the most value from your investment. With flexible solar financing options, achieving long-term savings and sustainability has never been easier.

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Find out how much you can save with solar — no pressure, no commitment.  Get free quote
Energy-Smart Families Speak Up

Trusted by Local Families

At Alternate Energy, customer satisfaction is at the heart of everything we do. Read real stories from homeowners who trusted us for their solar, PV, and AC needs — and see the difference quality service, expert installation, and great value can make.

See all stories
Photovoltaic
The Lee Family
Nuuanu

We wanted to get our electricity from the sun, not the electric company. Jeff Lee was professional, straightforward, and still answered our questions months after the install. Now our bill is down to just site-specific a month—we’ve been recommending AEI to all our friends.

read full review
Photovoltaic
The Antonio Family
Ewa Beach

As a former contractor, I appreciated that AEI focused on product quality—not just financing. Jeff Lum was informative and professional, and the installation went perfectly. With my condition, we rely on AC every day, so saving on our bill has made a real difference.

read full review
Energy Efficient Air Conditioning Hawaii | Save Power
The Matsumoto Family
Kapolei

Even with the AC running all day and night, our electric bill went down. Roy was incredibly responsive—it didn’t feel like talking to a sales rep, it felt like talking to family.

read full review
Photovoltaic
The Benros Family
Ewa Beach

We had a great experience with AEI. Dave Thompson helped us understand our options, the tax credits, and the whole installation process. We went with AEI because everything—panels and all—was Mitsubishi. We’ve already referred four friends.

read full review
Photovoltaic
The Adams Family
Waialua

AEI made everything simple and easy to understand. Our bill dropped based on site-specific conditions a month, and I was so impressed I recommended them to my parents. We’re already planning to add more panels.

read full review
Photovoltaic
The Vaeena Family
Honolulu

Our electric bill dropped from over site-specific to just site-specific a month—even after adding two AC units. Thanks to AEI and Roy’s help, we finally had the freedom to enjoy things like paddle boarding as a family.

read full review
Community & Innovation

See What’s Powering the Change

Trusted & Certified

Our Accreditations and Industry Partnerships

Alternate Energy Hawaii solar energy image
Alternate Energy Hawaii solar energy image
Solar energy icon for Alternate Energy Hawaii
Alternate Energy Hawaii solar energy image
Alternate Energy Hawaii solar energy image
Alternate Energy Hawaii solar energy image
Alternate Energy Hawaii solar energy image
Alternate Energy Hawaii solar energy image

How do you choose among solar companies in Hawaii?

There's no single best solar company in Hawaii, because the right installer depends on your roof, your Hawaiian Electric rate and program, and your budget. Start with three checks: a Hawaii contractor license, a BBB profile you can read, and years of local installs you can ask about. Alternate Energy Hawaii has all three, so compare us with at least two others. Our guide to how to compare solar companies in Hawaii lists the questions to ask.

2026 incentive update

What changed for Hawaii solar incentives in 2026?

Read the 2026 incentive guide
Ended

Federal credit ended

The 30% federal residential clean energy credit (Section 25D) isn't allowed for expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is complete.

Source: IRS
Changed

State credit capped

Act 24 (SB 3125), signed May 21, 2026, puts a $40 million annual cap on Hawaii's Renewable Energy Technologies Income Tax Credit and ends the credit after the 2029 tax year.

Source: Act 24
Exemption

2026 systems

Executive Order 26-02 (signed June 8, 2026) and TIR 2026-02 explain the cap exemption. Systems placed in service before May 21, 2026 are exempt; others may qualify through certification.

Source: TIR 2026-02
Available

Battery incentive

Hawaiian Electric's BYOD Plus pays $400 per kW of committed battery capacity upfront for new batteries paired with solar, plus $400 per kW for qualifying low- to moderate-income customers.

Source: Hawaiian Electric

Every household's tax situation is different, so check your eligibility with a tax professional.

Proof you can verify

What can you check before you hire us?

Customer stories

What do Oʻahu customers say?

See all customer stories
We wanted to get our electricity from the sun, not the electric company. Jeff Lee was professional, straightforward, and still answered our questions months after the install. Our electric bill has gone way down, and we've been recommending AEI to all our friends.
The Lee FamilyThe Lee FamilyNuʻuanu · PhotovoltaicFull review
As a former contractor, I appreciated that AEI focused on product quality, not just financing. Jeff Lum was informative and professional, and the installation went perfectly. With my condition, we rely on AC every day, so saving on our bill has made a real difference.
The Antonio FamilyThe Antonio FamilyʻEwa Beach · PhotovoltaicFull review
Even with the AC running all day and night, our electric bill went down. Roy was incredibly responsive. It didn't feel like talking to a sales rep, it felt like talking to family.
The Matsumoto FamilyThe Matsumoto FamilyKapolei · Air conditioningFull review
We had a great experience with AEI. Dave Thompson helped us understand our options, the tax credits, and the whole installation process. We went with AEI because everything, panels and all, was Mitsubishi. We've already referred four friends.
The Benros FamilyThe Benros FamilyʻEwa Beach · PhotovoltaicFull review
AEI made everything simple and easy to understand. Our monthly bill dropped, and I was so impressed I recommended them to my parents. We're already planning to add more panels.
The Adams FamilyThe Adams FamilyWaialua · PhotovoltaicFull review
Our electric bill dropped, even after adding two AC units. Thanks to AEI and Roy's help, we finally had the freedom to enjoy things like paddle boarding as a family.
The Vaeena FamilyThe Vaeena FamilyHonolulu · PhotovoltaicFull review

Plan your project with a local team

Every recommendation starts with your roof, your Hawaiian Electric account and what you want the system to do.

Get a free estimate
Trusted & certified

Our accreditations and industry partnerships

Hawaii contractor license C-26041, BBB accredited with an A+ rating, and certified by the manufacturers whose equipment we install.

Read our BBB profile →
  • BBB Accredited Business, A+ rating
  • Enphase Gold Installer
  • REC Certified Solar Professional
  • Mitsubishi Electric Diamond Contractor Elite
  • Solar Energy Industries Association (SEIA)
  • KITV Best of Hawaii 2023
  • Tesla Powerwall Certified Installer, Premier Installer
  • HD Hyundai Electric
Free estimate

Get a free solar estimate on Oʻahu

Tell us about your home or business, your electric bill and whether you want battery backup. We'll recommend a system for your roof and give you a written estimate.

Built for Hawaii Since 1993

Why Choose Alternate Energy Hawaii?

AEI brings solar, battery storage, roofing, electrical, AC, and EV charging together under one local team, so your energy project can be planned around Hawaii utility rates, HECO requirements, roof readiness, and long-term island support.

One in-house energy team

Solar, batteries, roofing, electrical, AC, and EV charging work together. AEI helps homeowners and businesses avoid disconnected decisions by planning the whole energy system.

Designed for island outages

Battery backup and energy independence planning help Hawaii families decide what should stay powered when the grid is down, from refrigeration and lighting to critical home circuits.

Local support after installation

After installation, local support matters. AEI helps customers understand monitoring, maintenance, battery settings, and next steps if equipment needs attention.

Financing and incentive guidance

Solar incentives, tax credits, HECO programs, and financing options can change. AEI helps customers compare practical paths before committing to a system design.

Buyer Confidence

Questions to Ask Before Choosing a Solar Company

How does AEI support customers after installation?

AEI provides local support for system questions, monitoring concerns, maintenance direction, and future upgrades. A solar project should not end when the panels turn on, especially in Hawaii where batteries, HECO programs, and utility rules can affect long-term performance.

What happens if solar monitoring stops reporting?

Monitoring interruptions can come from internet changes, equipment communication issues, or inverter/battery settings. AEI customers can contact support so the team can help identify whether the issue is connectivity, settings, or equipment that needs service.

How do I know if my roof is ready for solar?

A solar-ready roof should have enough remaining life, clear usable space, and a structure suited for the proposed system. AEI can evaluate roof readiness and connect solar planning with roofing and electrical considerations before installation.

Should I add battery storage now or later?

Battery timing depends on outage concerns, budget, HECO program availability, and how much backup power you want. Some homes benefit from designing solar and battery together, while others may plan battery readiness for a future phase.

What makes a local Hawaii installer different?

A local installer understands island weather, utility requirements, roof conditions, permitting timelines, and local support expectations. Those details matter when comparing a Hawaii-based energy team with a national sales-first provider.

How do permits and HECO interconnection work?

Solar projects typically require design review, permitting, utility coordination, and inspection before final operation. Timelines can vary by project and program, so customers should ask each installer how they manage permitting and HECO interconnection steps.

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