*Solar panel cost varies by location, solar panel mqanufacturer, system size and the amount of electricity your home uses.
There are three ways you can reduce your HECO bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. HECO offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Hawaiian Electric each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Hawaiian Electric. Even a small savings can be worth it.
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.
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.
The major financial incentive currently available until the end of 2022 is the 26% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a HECO customer:
|Residential Renewable Energy Tax Credit (Federal)||-$6,257|
Customer Grid-Supply Plus - Hawaii Island
The export credit is fixed through October 20, 2022
Hawaiian Electric Companies - Customer Self-Supply
Customers don't export any power to the grid but they can incorporate battery storage. All electricity produced must be used or stored.
|Solar and Wind Energy State Income Tax Credit (Personal) (State)||-$2,250|
*Based on 9.12 kW system, average installation cost $26,315
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.
Showing data for:
Prices based on a 8.0kW system, after 26% federal tax credit
System Size (for 100% usage offset)
Annual Power Generation
Pay-back time (assuming Cash purchase)
Internal Rate of Return (IRR) on Investment
Total Upfront Incentives and Rebates
Net Cost of System after rebates and incentives
Total Cost of Utility Power Avoided over 25 years
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
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 26% federal solar tax credit.
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