Residential

The government is anxious to pay you to go solar

How much?

Up to 55% of your system costs!

Here’s how we come up with that:

Federal Government pays        30%

Hawaii Government pays          25% (approximate after tax)

Residential Total                     55%!


**If you want the longer version read on**

The Federal government will give you 30% of the cost of your system in tax credits regardless of the size (no cap)!

The Hawaii State government offers you even more! They will give you a tax credit equal to 35% of your system cost. For homeowners this incentive is capped at $5,000 per system. This means that homeowners can maximize the full 35% on systems that cost up to $14,286 ($14,286 x 35% = $5,000).  However, for homes that require larger systems we can install multiple systems or in multiple phases over successive years to multiply this cap to ensure  the full 35% benefit.

Note: You may have noticed that the Hawaii State incentive is 35% yet we have listed in our opening calculation as only 25% (approximate after tax). This is because any income tax you pay the State is a tax deduction on your Federal tax return, and the opposite is true. Reducing the amount you pay the State means less deduction on Fed side. Essentially this mean you pay tax on the State solar tax credit. Therefore the real State incentive is the 35% reduced by your Fed tax bracket.

Not sure what tax bracket you are in?

Refer to these clickable links:

Fed Tax Brackets

Hawaii Tax Brackets

Tax Credit?

It is important to recognize that both the Federal and State incentives are a tax credit, not a tax deduction. Tax credits are much better because it means that the government incentive is a dollar for dollar elimination of tax liability. For example, if you would otherwise owe $5,000 in state income tax but earn a $5000 solar tax credit, then you owe no State income tax.

For those that have little or no State tax liability to utilize the credit the State passed a Senate Bill last summer (SB464) that allows individuals to elect to disconnect the incentive from their tax liability and take a reduced incentive in the form of a 24.5% rebate check.

Click on the links below to visit the DSIRE web site for further references regarding solar incentives:

Homeowner Federal Tax Credit

Hawaii Residential Tax Credit (or 24.5% rebate check)

How long will these incentives last?

Although these government programs are planned to run for the next few years they are subject to repeal if the governments find that they can’t afford it. Therefore it is prudent to get your system installed while they are still committed.

Call us today for a free evaluation of your solar options.

Contact Jim at 635-6462 or jim@xmxpower.com

  • KIUC Rate Increases

  • Rules Of Thumb

    Rule Of ThumbSpend $8k on solar for your home and save $100 per month on your energy bill.

    tax incentivesSpend $6k on solar for your business and save $300 per month on your energy bill!

    tax incentivesHomeowners get approximately 15%-17% return on their investment!

    tax incentivesBusiness owners get over 50% return on their investment!

    tax incentivesSavings typically pay back your investment about 6 years. After that your solar energy is FREE!

What about government incentives?

tax incentives The Federal and State Solar Investment Tax Credits just got WAY better. Now if you own a home you pay as little as 45% of the cost of your system. If you own a business you pay even less, as little as 15% of the cost of a solar system. For more details see our detailed explanation of government incentives.

Is solar good for the environment?

tax incentivesOn Kauai 92% of our electricity is generated from fossil fuel (diesel). The average household switching to PV power saves burning over 9 barrels of oil per year. This saves over 4 metric tons of green house gas put into the atmosphere each year! Check out  real time web monitoring.