Rules of Thumb
Spend $8k on solar for your home and save $100 per month on your energy bill.
Spend $6k on solar for your business and save $300 per month on your energy bill!
Homeowners get approximately 15%-17% return on their investment!
Business owners get over 50% return on their investment!
Savings typically pay back your investment about 6 years. After that your solar energy is FREE!
Benefits Of Solar
Kauai’s homes and businesses pay the hightest electricity rates in the nation. This is particularly due to our dependence on fossil fuel. The bulk of our electricity is generated from burning diesel oil. When fuel costs go up so does our electricity bill. Installing your own solar power can reduce or eliminate your exposure to rising electricity rates.
A solar power system can reduce or eliminate your electric bill. When you invest in solar you lock in a rate for energy for the next 25 years that is considerably less than you are already paying. As rates increase this difference will only increase, which will result in further savings over the life of the system.
Designed to encourage individuals and businesses to generate their own solar power, these programs can pay for up to 55% of the total system cost for residences and up to 88% for commercial businesses! These programs include direct rebates, tax credits, and other financial incentives.
Government incentives combined with recent decreases in solar equipment prices, make the investment in solar power a good financial decision for individuals and business owners. An investment in solar power can generate quick payback as well as long-term savings. Typical returns are up to 16% for homes and 50% for businesses!
Photovoltaic Cells were originally developed for use in space, where repair is extremely expensive, if not impossible. Solar still powers nearly every satellite circling the earth because it operates reliably for long periods of time with virtually no maintenance. Once installed, the solar power system requires little or no maintenance, and will provide electricity cleanly and quietly for 25 to 40 years. Our solar energy systems carry a 25-year manufacturer warranty on all major equipment.
Generating electricity from solar energy means less consumption of fossil fuels thereby reducing pollution and greenhouse gas emission. By switching to solar power you will be doing your part to combat global warming, and reduce our island’s dependence on fossil fuel. Being a green business can not only reduce your operating costs but can also be a great source of public relations and a good marketing tool. There are a growing number of consumers who make their buying decisions based on the perceived environmental responsibility of the company they are dealing with.
Incentives - The Government is Anxious to Pay You to go Solar!
Incentives - Residential
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.
Not sure what tax bracket you are in?
Federal Tax Brackets - Hawaii Tax BracketsIncentives - Businesses
The Federal government will give you 30% of the cost of your system in tax credits . For business owners you can also fully depreciate 85% of your system ! Depending on your tax bracket that could give you another 30% for a total of 60%!
The Hawaii State government offers you even more! They will give you a tax credit equal to 35% of your system cost.
What if I have little tax liability to use the tax credits?.
Unused tax credits can be carried forward to future years so any unused tax credits are not lost. The State also passed a Senate Bill (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.
This means that low tax liability is no issue.
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.
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.
Call us Today for a Free Evaluation of Your Solar Options.
Contact Jim at 808.635.6462 or jim@xmxpower.com
Case Study - Hoglund Residence
Carl and Denise Hoglund have a beautiful home on the north shore but noticed that their energy bill had been steadily rising. When Carl noticed a neighbor getting a solar power system installed it started the wheels turning. “I have a solar water system but didn’t know much about solar electric.” Carl said, “When I contacted Jim he explained the technology and gave me a thorough breakdown of the financial incentives. Now I feel like I really know a lot now about solar electric. It’s really interesting!”
When we first evaluated the Hoglund’s residence it was obvious that shading was a challenge. Although they have lots of roof area to harvest sun power they also have stately royal palms all around their home casting shadows on parts of the roof at various times of the day. To approach this challenge we first started by taking detailed shading measurements. With this information and utilizing sophisticated computer analysis we were able to accurately predict the impact of shading on various parts of the roof. This in turn enabled us to make a good decision on which parts of the roof to situate the solar panels and which equipment would be best suited to harvest the most power.
Here is the 3D shading model we produced to help visualize the shading impact at various times of the day:
Solar Questions
Web Monitoring - Stay Connected
If you’re like us, you want a home energy system that just works. A system that makes your life easier – and saves you money – but one you don’t have to think about. Our Home Energy Solution combines solar, storage, and software that tracks your production and consumption: an all-in-one solar energy system that maximizes your savings while you’re busy living your life. Our software gives you a real-time, in-depth view of your system production and energy consumption, so you can make informed choices about your energy use.
Click for Realtime Energy Monitoring of 7.5kW residential system in Princeville
Click for Realtime Energy Monitoring of 26.5kW commercial system in Kapaa
Click for Realtime Energy Monitoring of 12.6kW commercial system in Kapaa
Call us Today for a Free Evaluation of Your Solar Options.
Contact Jim at 808.635.6462 or jim@xmxpower.com