Are Solar Panels Worth It in Hawaii?
Last updated July 1, 2026 · based on Hawaii energy prices
In Hawaii, where residential electricity averages about 41¢/kWh and rooftop solar yields roughly 1,600 kWh per kW per year, solar pays back relatively quickly — roughly 7.5 years at Hawaii electricity prices.
Hawaii solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 11,200 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $2,800 |
| Payback period | 7.5 years |
| 25-year net savings | +$44,957 |
Figures use Hawaii average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for Hawaii homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in Hawaii carries the full upfront cost unless a state or utility incentive applies. Because Hawaii electricity costs well above the national average, the payback case is favorable for most well-suited roofs.
Frequently asked questions
Are solar panels worth it in Hawaii in 2026?
At Hawaii's electricity price of 41¢/kWh, a typical 7 kW system saves about $2,800 per year and pays for itself in roughly 7.5 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in Hawaii?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in Hawaii?
About 1,600 kWh per year per kW installed in Hawaii, so a 7 kW system produces roughly 11,200 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on Hawaii average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.