Incentives

Incentives


As a business person or homeowner, you have excellent reasons to invest in a photovoltaic or wind energy system.


Market Incentives

  • Highest cost of electricity in United States

    These are average retail prices (cents per Kilowatt hour) for electricity in the U.S. as of May 2012

     Residential Commercial Industrial

    Hawaii 37.04 34.93 30.79

    U.S. Average 11.71 9.94 6.51


    Average Hawaii Residential Energy Costs 2002-12


  • Falling costs for crystalline photovoltaic modules

    Photovoltaic module prices have dropped roughly 47% in the last 18 months due to reduced government incentives, oversupply, and a price war among manufacturers.

  • Grid access constraints

    The Hawaii electric utilities have put in place a 15% limit on distributed generation penetration on their distribution circuits. When the amount of photovoltaic power on a circuit reaches 15% of the peak load, the utility can close that circuit to new commercial (and sometimes residential) installations. Without a policy change, circuit by circuit, businesses and homeowners will be limited and then barred from installing photovoltaic power. This has already occurred on Hawaii, Molokai, and Oahu.


Tax and Income Incentives


For Businesses

  • Hawaii Corporate Tax Credit – PV – 35% of cost or $500,000.00, whichever is less. Under certain conditions, the credit amount can be reduced by 30% and this amount taken as a refund.
  • Hawaii Corporate Tax Credit – Wind - 20% of cost or $500,000.00, whichever is less.
  • Federal Corporate Tax Credit – PV or Wind -30% of cost
  • Federal Modified Accelerated Cost Recovery System (MACRS) PV or Wind
  • HECO Feed In Tariff – Tier 1 or 2 PV – HECO will pay for the electricity you generate.
  • Businesses may be eligible for other State or Federal incentives.

State and Federal incentives can cover 75% or more of your business photovoltaic system cost in the first year. 


For Homeowners

  • Hawaii Personal Tax Credit – PV - 35% or $5,000.00, whichever is less. Under certain conditions, the credit amount can be reduced by 30% and this amount taken as a refund.
  • Hawaii Personal Tax Credit – Wind -20% of cost or $1,500.00, whichever is less.
  • Federal Personal Tax Credit – PV – 30% of cost.
  • HECO Feed In Tariff – Tier 1 PV – HECO will pay for the electricity you generate.

State and Federal tax credits can cover up to 65% of your residential photovoltaic system cost.


While we can assist you with information regarding these incentives, Boss Enertech is not qualified to provide tax planning or advice. Please consult with your tax preparer or CPA to verify to applicability of these incentives.