Hawaii · Tax exemption · Deep-stack program
HI Solar Property Tax Exemption
Removes a tax burden residential solar owners in Hawaii would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Property tax exemption
- stated benefit
- Residential
- eligible customers
- 5.2 yr
- Hawaii baseline payback
- 3
- other Hawaii programs
Deep-stack program · late directory
Hawaii runs a 4-program DSIRE stack; this tax exemption is one layer on a 5.2-year modeled baseline, not the whole story.
- Stack4 programs
- In-state #3/3
- Type #12/45
- Baseline5.2 yr
In-state directory place #3 of 3 (late alphabet). National tax exemption directory #12 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
Program description
Hawaii exempts solar energy systems from property tax assessment.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Property tax exemption
- State electricity rate
- 38¢/kWh
- Hawaii solar score
- 67/100
Solar's trajectory in Hawaii
The market this incentive operates in: total installed solar capacity in Hawaii reported to the EIA.
Hawaii's solar incentive stack
How this tax exemption sits among Hawaii's 3 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Loan
Loan
1 programs
- Net metering
Net metering
1 programs
What this shows Hawaii tracks 3 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this tax exemption layers inside Hawaii's deep stack
The HI Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Hawaii's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is already fast by national standards. Hawaii averages 5.9 kWh/m²/day of usable sunlight and residential rates of 38¢/kWh, producing an estimated 10,337 kWh/year and $3,928 of annual utility offset on a typical 6 kW system costing $20,400. That baseline already implies a 5.2-year simple payback and a 25-year modeled net of roughly $77,800 before this incentive - every dollar this tax exemption delivers compresses that payback further.
Hawaii bundles a deep incentive stack, so this program rarely stands alone. Hawaii has 4 solar incentive programs indexed in DSIRE, including adjacent options like Hawaii Green Infrastructure Loan (GEMS), Hawaii Smart Export Tariff (SET). The state's net-metering policy is classified as partial, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Other Hawaii incentives
Frequently asked questions
Where does the HI Solar Property Tax Exemption sit in Hawaii's deep program stack?
How does this tax exemption work beside Hawaii's other programs?
Who qualifies, and what does a late in-state directory place mean?
How does this incentive affect solar ROI in Hawaii?
Which other Hawaii programs stack with this one?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Hawaii solar data · ROI calculator · All incentives.