Rebates

Note: The Hawaii Building Code Council has proposed adopting 2015 IECC standards.

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP websites.

No schedule exists for making statewide changes to the Hawaii Model Energy Code (HMEC). Each county reviews its code periodically. If changes are deemed necessary on a statewide basis, the Department of Business, Economic Development, and Tourism (DBEDT) submits proposed legislation to the state legislature. Following

In September 2009, the Honolulu City Council unanimously passed Bill 58 to create a real property tax exemption for alternative energy improvements. This bill became effective October 1, 2009. Honolulu later amended it. 

The renewable energy property installed on a building, property, or land is exempt from real property taxes. Additionally, the portions of land actually used for the active production or storage of renewable energy is exempt from 80% of its value for tax purposes if the energy is primarily for use, distribution, or sale to public utilities or for public consumption under a power purchase agreement or power

The City and County of Honolulu offers loans for solar equipment through their Rehabilitation Loan Program. The program offers zero-interest loans to income-eligible homeowners for the installation of solar water heating and photovoltaic systems through the City's Rehabilitation Loan Program.

The zero-interest loans are available for single-family homes and individual condominiums with home owners association approval. For loans over $10,000, a mortgage lien will be secured on the property. Additional repairs such as re-roofing work, etc. may be included in the installation work depending on the City inspection. Qualification is dependent on income level (guidelines available on program website). The program is

Senate Bill 1050, enacted in June 2015, created the Hawaii Community-Based Renewable Energy (CBRE) program. The legislation established the broad parameters for the program, and charged the Public Utilities Commission with further fleshing out the rules and approving CBRE tariffs filed by the utilities. 

Phase 1 CBRE

In December 2017, the Commission adopted a Phase 1 CBRE Framework and directed the utilities to file tariffs consistent with the framework. The framework adopted different capacity allocations and credit rates for the different islands: 

1. Oahu - 5.0 MW, $0.15/kWh
   
2. Hawaii Island - 1.0 MW, $0.15/kWh
   
3. Maui - 1.0 MW, $0.165/kWh
   
4. Molokai -

Origin

Hawaii enacted legislation (HB 1464) in June 2009 that established an Energy Efficiency Portfolio Standard (EEPS). Hawaii's EEPS and Renewable Portfolio Standard (RPS) are related. Until January 1, 2015, energy efficiency was included in Hawaii's RPS. However, beginning in 2015, energy efficiency and displacement or offset technologies were no longer be eligible to fulfill Hawaii's RPS; these technologies became part of the separate EEPS. Displacement or offset technologies include solar water heating, seawater air conditioning district cooling systems, and solar air conditioning. Energy efficiency technologies defined by the RPS include heat pump water heating, ice storage, ratepayer-funded

In July 2008 Hawaii enacted legislation (HB 2261) which created a loan program for agriculture and aquaculture renewable energy projects. Farmers and aquaculturists may receive loans for projects involving photovoltaic (PV) energy, hydroelectric power, wind power generation, methane generation, bio-diesel and ethanol production. Loans may provide up to 85% of the project cost (up to a maximum of $1,500,000) for a term of up to forty years. To be eligible, the applicant must be a qualified farmer or aquaculturist with a sound credit rating and the ability to repay the loan, as determined by the Department of Agriculture.

These renewable

Note: This program is closed to new applications. The summary below is for informational purposes only. 

In September 2009, the Hawaii Public Utilities Commission (PUC) issued a decision that established a feed-in tariff in Hawaii. The feed-in tariff is offered by the three investor-owned utilities: HECO, MECO and HELCO. The rates for the feed-in tariff, schedule, and standard interconnection agreements were approved on October 13, 2010. This program will be reviewed by the PUC two years after the start of the program and every three years thereafter. The FIT for Tiers 1 and 2 opened November 17, 2010 for HECO

S.B. 1087 of 2013 established the Hawaii Green Infrastructure Authority (HGIA) for the purpose of administering Green Infrastructure Bonds to secure low-cost financing for clean energy installations, including both renewable energy and energy efficiency measures. HGIA manages the Hawaii Green Energy Market Securitization (GEMS) Program, which is intended to create a sustainable financing structure through market driven public-private partnerships that will open access to financing for more Hawaii customers and democratize access to clean energy. HGIA has a goal of using 100% of funds to finance underserved households, defined as LMI households, renters, nonprofits, small businesses, and multi-family rental projects.

The GreenSun Hawaii program works with various lenders throughout Hawaii to offer financing for renewable energy and energy efficiency upgrades. Through the program, homeowners may be eligible to finance Energy Star refrigerators, Energy Star air conditioners, solar water heating systems or heat pumps, and solar photovoltaic systems.  Non-residential property owners may be eligible to finance lighting retrofits or upgrades, air conditioning, solar water heating systems, solar photovoltaic systems, and windows. An energy audit is required for non-residential property owners.

GreenSun Hawaii is a loan loss reserve fund developed using funds from the The American Recovery and Reinvestment Act of 2009

Hawaii Energy is a public benefits fund (PBF) funded by a surcharge on utility bills that is based on a percentage of total utility revenue. The PBF pays for a number of clean energy incentive, rebate, and exchange programs. For more information on specific programs, visit the Hawaii Energy website.

The percentage of total utility revenue is used to establish a target budget for the PBF. The surcharge is set on a cents per kilowatt-hour ($/kWh) basis to meet the target budget. The surcharge is determined by dividing the target budget (based on a percentage of total utility sales)

Note:  In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

Hawaii law prohibits the creation of any covenant or restriction contained in any document restricting the installation or use of a solar energy system on a residential dwelling or townhouse. Furthermore, Hawaii requires homeowners associations to adopt rules that provide for the placement of solar energy systems and do not unreasonably restrict the placement. In July 2010, SB 2817 was enacted that clarified this requirement and required homeowners associations to pass rules by July 1, 2011 in accordance with this requirement. This legislation states that homeowners associations' rules and regulations cannot "render a solar energy device more than 25 per

Hawaii has established simplified interconnection rules for small renewables and separate rules for all other distributed generation (DG). For inverter-based systems up to 10 kilowatts (kW) in capacity, there is a simple application process for interconnection. Systems must meet all applicable performance and safety standards from the Institute of Electrical and Electronics Engineers, Underwriters Laboratories, National Electric Code, and where applicable, public utilities commission rules.  For other smaller systems, there are simplified interconnection procedures for net metered systems powered by solar, wind, biomass and hydroelectric up to 50 kW. 

History

Two dockets were opened in 2006 to streamline interconnection procedures

Through a partnership with Kauai Gather Federal Credit Union, the Kauai Island Utility Cooperative (KIUC) provides qualifying members with zero-interest loans for solar water heating systems. Members who want to replace their existing electric water heater with a solar water heater or replace an existing non-functioning solar water heater can apply for a $1,500 rebate or a zero-interest loan.

Contact one of the participating solar contractors to apply today.

Arroyo's Plumbing and Repair | [email protected] | 808.634.5635
Poncho's Solar Service | [email protected] | 808.422.4266
Sun King Solar | [email protected] | 808.245.6570

Members who want to replace their existing electric water heater with a solar water heater or replace an existing non-functioning solar water heater can apply for a $1,500 rebate or a zero-interest loan.

Contact one of our participating solar contractors to apply today.

Arroyo's Plumbing and Repair | [email protected] | 808.634.5635
Poncho's Solar Service | [email protected] | 808.422.4266
Sun King Solar | [email protected] | 808.245.6570

KIUC has partnered with Gather Federal Credit Union for the loan program.

Hawaii Revised Statutes (HRS) §46-19.6 requires each county agency that issues building, construction, or development-related permits to establish a procedure for priority processing of permit applications for construction projects incorporating energy and environmental design building standards. The priority processing will be provided at no additional cost.

Buildings eligible for priority processing are those that meet the "energy and environmental design building standards". These standards can be achieved by earning either a Leadership in Energy and Environmental Design (LEED) silver rating, a two Green Globes rating, or a comparable state-approved, nationally recognized, and consensus-based guideline, standard, or system.

For further information, contact

Hawaii's Renewable Portfolio Standard (RPS) requires each electric utility company that sells electricity for consumption in Hawaii to have the following percentages of electricity sales come from renewable energy by the corresponding date. H.B. 2089 of 2022 amended the RPS to based on net electricity generation rather than retail sales beginning in compliance year 2030. 

• 10% of its net electricity sales by December 31, 2010;
• 15% of its net electricity sales by December 31, 2015;
• 30% of its net electricity sales by December 31, 2020;
• 40% of its net electricity generation by December 31, 2030;
• 70% of its net electricity

In May 2006, Hawaii’s governor signed HB 2175 addressing renewable energy, energy efficiency, and alternative fuels in state facilities and operations. This legislation also detailed requirements for renewable energy and energy efficiency in Hawaii’s public schools. 

State law requires energy efficiency and environmental standards for state facilities, motor vehicles, and transportation fuels. Each state agency must meet the following requirements to the extent possible:

• Buildings must be designed and constructed to meet the Leadership in Energy and Environmental Design (LEED) “Silver” standard, the two green globes rating system, or another similar guideline, standard, or system that is approved by the

A residential property owner is required to disclose electricity costs for the most recent three-month period in which the property was occupied as a condition of selling it. No proof or copies of the electricity bills are required, but sellers must make a "good faith declaration."  Energy legislation (HB1464) added this requirement to Hawaii's existing Mandatory Seller Disclosures in Real Estate Transactions law in 2009.

As part of its Residential rebate program, Hawaii Energy provides rebates to residences for heat pump water heaters, central air conditioning system tune-ups, refrigerator trade-ups, ceiling fans, CFL light bulbs and other improvements. These rebates are available to residential electric utility ratepayers on Hawaii Island, Lanai, Maui, Molokai and Oahu only. In order to be eligible for this rebate, residents must live in their homes year round and purchase a program approved piece of equipment. Applications must be postmarked no more than sixty days after equipment purchase. Please allow 6 – 8 weeks for processing. Interested customers can view a list

Note: The Hawaii Public Utilities Commission (PUC) issued a decision and order in December 2023 adopting  two new permanent Smart DER tariff options (Smart Renewable Energy Export and Smart Renewable Energy Non-Export), which took effect on April 1, 2024. Customers taking service under one of the previous tariffs will be transitioned to the Smart Renewable Energy Export program after seven years in their current program. The earliest transitions will begin on October 1, 2024. The summary below describes the new Smart DER tariffs, followed by the previous interim tariff options.  

Smart DER Tariff Options (for systems installed on or after

Originally enacted in 1976, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system and 35% of the cost of equipment and installation of a solar thermal or photovoltaic (PV) system.* 

For solar thermal water heating systems, the maximum allowable credits are as follows:

• Single family residential property is eligible for a credit of 35% of the actual cost or $2,250, whichever is less;
• Multi-family residential property is eligible for a credit of 35% of the actual cost or $350 per unit

Originally enacted in 1976, the Hawaii Energy Tax Credits allow individuals or corporations to claim an income tax credit of 20% of the cost of equipment and installation of a wind system and 35% of the cost of equipment and installation of a solar thermal or photovoltaic (PV) system.* 

For solar thermal water heating systems, the maximum allowable credits are as follows:

• Single family residential property is eligible for a credit of 35% of the actual cost or $2,250, whichever is less;
• Multi-family residential property is eligible for a credit of 35% of the actual cost or $350 per unit

Hawaii offers several specialty licenses for solar contractors through Hawaii’s Department of Commerce and Consumer Affairs. The following specialty licenses are available: Solar Power Systems Contractor (C-60); Solar Energy Systems Contractor (C-61); Solar Hot Water Systems Contractor (C-61a); and Solar Heating and Cooling Systems Contractor (C-61b). These licenses require business and trade exams plus four years of experience. An Electrical Contractor (C-13) license is required to install photovoltaic systems other than low voltage DC wiring and it includes the work of the C-60 solar power systems contractor. Plumbing contractors (C-37) are also allowed to install solar hot water heating systems.

Hawaii Energy, a third-party administered public benefits fund, provides incentives for energy efficiency and conservation to customers of the Hawaiian Electric Company (HECO) and its subsidiaries, Maui Electric Company (MECO) and Hawaii Electric Light Company (HELCO). This incentive is available for installations on the islands of Oahu, Hawaii, Maui, Lanai and Molokai.

Residential utility customers in Hawaii, Honolulu, and Maui counties can choose between a direct upfront rebate of $500 or a $750 interest rate buydown. They cannot receive both. The upfront incentive is paid to the installer and deducted from the customer's final bill. The interest rate buydown

In June 2008, Hawaii enacted legislation, SB 644, with the intent to require solar water-heating (SWH) systems to be installed on all single-family new home construction, with a few exceptions. This legislation had several errors that were corrected by legislation passed during the 2009 legislative session. In June 2009, HB 1464 was signed by the governor and addressed the errors in the previous solar water heating requirement.

As of January 1, 2010, building permits may not be issued for new single-family homes that do not include a SWH system. The state energy resources coordinator may provide a variance for