Hawaii Act 24 solar tax credit update
Hawaii Solar Tax Credit Changes in 2026: What Act 24 Means for Homeowners and Businesses
Act 24 changes Hawaii's solar tax-credit program, but solar and battery storage continue to be important tools for managing energy costs, improving resilience, and supporting long-term energy planning. Alternate Energy Hawaii is helping homeowners and businesses understand their options as guidance continues to develop.
This post is for general informational purposes only and should not be treated as tax or legal advice. Please consult a qualified tax professional for guidance on your specific situation.
What happened
During the 2026 legislative session, Hawaii lawmakers advanced SB3125 as part of a broader income tax package. The Governor's office has identified SB3125 as Act 24. The law includes changes to the Renewable Energy Technologies Income Tax Credit, including a statewide annual cap, income thresholds, certification requirements, and sunset language.
Because solar and battery projects can involve consultation, design, permitting, equipment, financing, installation, inspection, utility review, and interconnection, customers should review project assumptions carefully as guidance continues to develop.
Is solar still worth it in Hawaii after Act 24?
Direct answer: Many homeowners and businesses continue to evaluate solar and battery storage because Hawaii's electric rates remain among the highest in the nation. Project value depends on energy use, system design, financing, and individual circumstances.
Incentives are only one part of the decision. A well-designed solar PV and battery storage project may also support resilience, reduce long-term exposure to utility-rate changes, and help customers plan around how they actually use energy.
Why Many Hawaii Residents Are Still Choosing Solar
Hawaii continues to have some of the highest electricity costs in the United States. For many families and businesses, solar remains part of a larger plan to manage energy use, reduce long-term exposure to utility-rate increases, and gain more control over how power is produced and used.
Battery storage can improve resilience during outages and help customers use more of their own solar energy when the sun is not shining. Federal incentives may still be available for qualifying projects, but every project should be evaluated individually based on timing, eligibility, system design, and customer goals.
Why Act 24 matters for project planning
Act 24 matters because tax-credit rules can influence project assumptions, documentation, financing conversations, and timing. Customers who were already considering solar or battery storage may need to review how updated rules affect their specific project.
The most practical next step is not to panic or pause indefinitely. It is to get current information, understand your energy goals, review project timing, and coordinate tax questions with a qualified tax professional.
Should You Wait To Start A Solar Project?
Waiting does not necessarily create additional certainty. Solar projects can require consultation, design, permitting, utility review, installation, inspection, and interconnection. Those steps take time, and the right decision depends on the customer's home, business, energy use, roof readiness, battery needs, and financial assumptions.
If you are considering solar or battery storage, it may be helpful to evaluate your options now so you can make an informed decision. AEI can help with project planning, while your tax professional can advise on tax treatment and eligibility.
Did Hawaii eliminate the solar tax credit?
Direct answer: Act 24 changes Hawaii's renewable-energy tax-credit structure, but eligibility and impact depend on project timing, income thresholds, future guidance, and individual circumstances.
Customers should avoid relying on old percentage claims or assumptions. The safest approach is to review current project details with AEI and tax questions with a qualified tax professional.
Want to follow or support the policy conversation?
Solar United Neighbors has published an action page for residents who want to ask state leaders to address questions around 2026 projects. This advocacy resource is available for customers who want to participate, but the main project decision should still be based on your energy needs, timing, and individual circumstances.
View the Solar United Neighbors Action PageHow Alternate Energy Hawaii Is Helping Customers Navigate Act 24
Alternate Energy Hawaii has served local families and businesses since 1993. AEI is monitoring developments related to Act 24 and helping customers evaluate solar PV systems, battery storage, roof readiness, utility requirements, and long-term energy planning.
AEI can help review project assumptions and coordinate the solar-planning process while customers work with qualified tax professionals on tax-credit eligibility, documentation, and filing questions.
For project-specific planning, start with AEI resources on solar incentives in Hawaii, tax credits and incentives, photovoltaic systems, and PV + storage solutions. When you are ready, request a site-specific solar evaluation.
Why Hawaii Homeowners Trust AEI
Local Solar, Battery, and Energy Expertise
Serving Hawaii since 1993
Decades of local energy experience across changing utility programs, technologies, and customer needs.
Thousands of solar projects completed
AEI brings practical installation knowledge to solar PV, battery storage, and long-term energy planning.
Local installation teams
Local crews understand island conditions, roof readiness, permitting, and utility coordination.
Solar + battery expertise
AEI helps customers evaluate solar production, backup power priorities, and battery storage options together.
Licensed Hawaii contractor
AEI operates as a licensed Hawaii contractor and reinforces project planning with local accountability.
Local support and service
After installation, AEI helps customers with monitoring questions, maintenance direction, and future upgrades.
FAQ
What is SB3125 / Act 24?
SB3125, identified by the Governor's office as Act 24, is a Hawaii income tax law that changes the Renewable Energy Technologies Income Tax Credit. Reported changes include caps, income thresholds, certification requirements, and sunset language.
Is solar still worth considering in Hawaii after Act 24?
Many homeowners and businesses continue to evaluate solar and battery storage because Hawaii's electric rates remain among the highest in the nation. Project value depends on energy use, system design, financing, and individual circumstances.
Did Hawaii completely eliminate solar incentives?
Act 24 changes Hawaii's renewable-energy tax-credit structure, but it does not mean every solar incentive is gone for every customer. Eligibility and impact depend on project timing, income thresholds, future guidance, and individual circumstances.
Should I wait until more guidance becomes available?
Waiting does not necessarily create additional certainty because solar projects require consultation, design, permitting, utility review, installation, inspection, and interconnection. Customers considering solar should evaluate options now and make an informed decision.
Does Act 24 affect battery-storage projects?
Act 24 may affect tax-credit planning for some renewable energy projects, and battery-storage impacts can depend on project configuration and future guidance. Battery storage can still be important for resilience, backup power, and long-term energy planning.
What records should I keep if my project is already underway?
Customers with projects already underway should keep contracts, invoices, payment records, permit documents, utility correspondence, interconnection information, installation records, and any tax documentation. A qualified tax professional can advise what records matter for a specific situation.
Does Alternate Energy Hawaii provide tax advice?
No. Alternate Energy Hawaii can help with solar PV, battery storage, and project planning, but it does not provide tax or legal advice. Customers should consult a qualified tax professional for guidance on eligibility and filing questions.
