Hawaii’s Solar Obligation: Frontrunner in the USA

Solar is everywhere in Hawaii: This is the Helemano Army Family Housing project of the U.S. army near the city of Wahiawa. It possesses more than 400 solar water heaters. Photo: Sunearth

Hawaii is the state with the biggest solar water heating market in the US. Because it wants to stay ahead, the Hawaii government introduced a solar mandate during the summer of 2008. The key statement of law 196-6.5: “No building permit shall be issued for the single-family dwelling that does not include a solar water heater system on or after January 1^st, 2010”.

Earlier this year, authorities published modifications to the law. They also include clear regulations on how to handle tax credits. State income tax credits for solar water heating systems that cover 35 % of installation costs (up to US$ 2,250 for single family houses) have been available in Hawaii since January 2006. Single-family residential property for which a building permit was issued prior to January 1^st, 2010 will still profit from these tax credits. Afterwards, a solar water heating system will be mandatory and no longer be eligible for either tax credits or rebates by the Hawaiian public utility companies Heco, Helco and Meco. The public utilities started rebating solar water heaters as early as 1996. Currently, a rebate amounts to US$ 1,000 per system.

Multi-family residential and commercial properties are still fully eligible for tax credits, because installing a solar water heater here is still voluntary:

• Multi-family residential buildings: tax credit of 35% of the actual cost or US$ 350 per unit, whichever is less

• Commercial property: tax credit of 35% of the actual cost or US$ 250,000, whichever is less.