The clock is ticking for Hawaiʻi residents looking to take advantage of a major federal tax credit for rooftop solar and storage systems.
Set to vanish after December 31, the investment tax credit offers a substantial 30% reduction in costs for new systems, but many residents may find the window for eligibility has already closed.
To qualify for the residential tax credit, systems must be fully installed by the end of 2025.
However, solar installers in the region have indicated that installation time can range from two to four months on the neighbor islands, and four to six months on Oʻahu.
Consequently, residents who have not initiated the solar installation process may be running out of time.
Rocky Mould, the executive director of the Hawaiʻi Solar Energy Association, emphasized the urgency, stating, “New customers can’t count on claiming the credit to help finance the cost of a new solar system.
There are no guarantees you’re going to get that tax credit going forward.”
The situation has been further exacerbated by a surge in demand for residential solar energy following new legislation.
On July 4, President Donald Trump signed the One Big Beautiful Bill Act, which moved the tax credit’s end date from 2032 to 2025, prompting a rush in the market.
Solar companies are experiencing unprecedented booking levels, with many fully booked through the end of the year.
David Gorman, who heads the residential division of RevoluSun, noted that the company achieved six months’ worth of sales in July alone.
“We just had to kind of call it, because we were worried about taking on and committing to more than we were actually going to be able to do,” Gorman added.
Similarly, Matias Bessaso, CEO of Rising Sun Solar, shared insights about demand rising significantly since midsummer.
His company, which operates in Kauaʻi, Oʻahu, Maui, and Hawaiʻi, ceased taking new clients weeks ago due to overwhelming demand.
The situation on Maui is particularly challenging, as Rising Sun lost several projects due to the devastating fires in 2023, leading to a downsized workforce.
Bessaso remarked, “Today, we are about a quarter of the size that we were two years ago, and demand is as high, if not higher, than it was at other times.”
On Hawaiʻi Island, Joshua Mason, the owner of Blue Sky Energy, is focused on enhancing his company’s capacity to cater to new customers seeking to install solar systems.
Mason has assured customers that if their projects miss the tax credit deadline, they will have no obligation to proceed with the project in 2026.
Meanwhile, Solar Kauaʻi, run by the Lucas family, remains one of the few companies open to new residential customers.
Elliot Lucas mentioned that homeowners on Kauaʻi looking to install systems that generate less than 10 kilowatts of power can obtain expedited approval for their permits.
However, most customers prefer larger installations, requiring a more prolonged permitting process.
Lucas warned, “If you wait another couple of weeks, I’d say it’s a no-go completely.”
Looking ahead to 2026, Mould voiced concerns about the elimination of the tax credit, noting it would negatively impact both customers and the solar industry.
However, he remains optimistic about the potential for rooftop solar, pointing out the high cost of electricity in Hawaiʻi.
Mould stated, “Rooftop solar and energy storage combined really can help people reduce their energy costs, even without this 30% federal tax credit.”
Solar companies are preparing for a potential downturn in business as the new year approaches.
While some plan to absorb additional costs to keep prices appealing to residential customers, others are considering a shift of focus toward the commercial market.
Conversely, Solar Kauaʻi, which has been operational for 45 years, intends to stick with its current business model.
Lucas remarked, “This isn’t the first time that there’s been ripples in the industry.
We just kind of stay lean, and there’ll always be something for us to do.”
The situation underscores the urgency for many homeowners in Hawaiʻi to act swiftly if they plan to benefit from the federal tax credit before it potentially disappears.
image source from：hawaiipublicradio
