Aloha! If you‘re a homeowner in Hawaii interested in adding solar panels, you‘ve found the right place. Given the island‘s natural abundance of sun and nation-leading electricity rates, solar power simply makes sense here. Join me as I walk you through everything you need to know – from upfront pricing and sizing recommendations to projected investment returns and available incentives. My goal is to provide you the background to determine if home solar is right for your circumstance. Let‘s get started!
Solar Market Fundamentals in Hawaii
While intuition says an island state should lead in solar adoption, that‘s not quite the case yet. As of 2022, Hawaii ranked 30th nationally in solar energy production. However, the upside potential for solar here remains massive, driven by the region‘s soaring utility costs.
Electricity prices in Hawaii stand 33% above the second-highest state, averaging a whopping $0.34 per kWh. With bills running 2-3x higher than the mainland already, rates continue rising 7% annually. At the same time, Hawaii boasts the country‘s most sunshine-filled capital with Honolulu averaging 277 sunny days per year.
| State | Avg. Retail Electricity Rate |
|---|---|
| Hawaii | $0.34/kWh |
| California | $0.25/kWh |
| New York | $0.21/kWh |
The economics for offsetting high-priced grid power through rooftop solar keep getting better. And state regulators continue pushing aggressive renewable energy standards, compelling utilities to expand solar and storage capacity.
Breaking Down the Upfront Costs
So what exactly does a solar system cost in Hawaii? While pricing sits at a premium versus most states, government incentives help ease the sticker shock. Let‘s break things down:
- Average solar panel cost per watt = $2.67
- Approximate system cost (parts + installation)
- 2 kW system = $5,340
- 4 kW system = $10,680
- 6 kW system = $16,020
- After applying the 26% federal solar tax credit:
- 6 kW system cost drops to $11,835
Now those definitely sound like big investment numbers upfront. But remember we need to weigh system costs relative to the substantial, lasting utility savings you‘ll enjoy.
Solar array costs divide across several key hardware components and installation charges:
| Cost Component | % System Cost |
|---|---|
| Modules | 32% |
| Inverters | 10% |
| Racking | 15% |
| Electrical | 12% |
| Permits | 6% |
| Labor | 25% |
Beyond the base $/watt panel pricing, your installer choice also affects overall pricing considerably. We‘ll examine the vendors to consider a bit later on.
Right-sizing Your System
To right-size your solar system, you‘ll need to understand your home‘s electricity consumption and solar harvesting potential. As a rule of thumb, divide your annual usage in kWh by the typical peak sunlight hours for your area.
For example, the average Hawaiian household uses 675 kWh monthly, or about 8,100 kWh annually. Dividing by Honolulu‘s 5.9 average daily sunlight hours, we get an estimated solar size of 4.3 kW.
Using this output capacity target and the average $2.67/W cost above, a properly-sized solar array for an average Oahu home lands around $11,500 before incentives. Of course your specific location, roof size, and consumption habits could alter things. But this offers a reasonable baseline.
Now let‘s examine sizing for a couple sample households:
| Location | Annual Usage | Sun Hours | Recommended System Size |
|---|---|---|---|
| Honolulu (Oahu) | 8,500 kWh | 5.9 hrs | 4.2 kW |
| Kahului (Maui) | 10,500 kWh | 6.4 hrs | 4.9 kW |
| Hilo (Big Island) | 9,800 kWh | 4.8 hrs | 6.1 kW |
Adapt these simple calculations to estimate the optimally-sized solar array for your Hawaii property.
Evaluating Top Installers
Once you‘ve determined appropriate solar array capacity, identifying a quality installation company proves critical. While upfront panel costs might appear similar between vendors, experience levels, equipment quality, warranties and service reputation can vary tremendously.
As one of Hawaii‘s most established solar firms with over 1,500 installations completed, RevoluSun distinguishes themselves on all counts. Their team holds over 50 years combined regional experience along with the highest industry certifications. Comparing a few top options:
| Company | Years in Business | Warranty Length | Rating | Certifications |
|---|---|---|---|---|
| RevoluSun | 13 years | 25 years | A+ | BBB, SEIA |
| Rising Sun Solar | 35 years | 10 years | A | SEIA |
| Paradise Solar | 9 years | 15 years | A | SEIA |
| SolarEdge | 6 years | 12 years | B+ | SEIA |
RevoluSun also uses best-in-class equipment from high-reliability manufacturers like SunPower, LG, and Enphase. This ensures your system performance and savings potential get maximized over decades of electricity production.
Projecting Your Return on Investment
Now for the magic part – will solar actually save you money in Hawaii? With the country‘s costliest grid power and most days of sun, the investment case keeps getting more compelling. Let‘s walk through the numbers…
Based on our previous sizing exercise, we determined the average Oahu household could install a 4 kW solar system for about $11,500 after incentives. Compared to paying $220 per month to HECO, that system would cut your bill by $110 monthly, or $1,320 per year.
| Year | Annual Savings | Cumulative Savings |
|---|---|---|
| 1 | $1,320 | $1,320 |
| 2 | $1,320 | $2,640 |
| 3 | $1,320 | $3,960 |
| 4 | $1,320 | $5,280 |
| 5 | $1,320 | $6,600 |
| 6 | $1,320 | $7,920 |
| 7 | $1,320 | $9,240 |
| 8 | $1,320 | $10,560 |
Running the numbers, you would recoup your initial solar investment in just 8 years! And thanks to most panel equipment warranties spanning 25 years, you‘d continue realizing over $30,000 in cumulative utility savings across the life of your system.
Now if electric rates rise as projected, you could recover costs even quicker and ultimately save much more. That‘s the power of locking in solar pricing upfront while utility expenditures inflate at 7% annually.
Incentives to Reduce Costs
To ease the transition to home solar, Hawaii offers a couple nice incentives:
| State / Utility Rebate | Max Value |
|---|---|
| Federal Solar Tax Credit | 26% of system cost |
| Hawaiian Electric Heat Pump Water Heater Rebate | $750 rebate |
Combining rebates and credits, a household could save upwards of $4,000 off typical solar installation costs. Check the Database of State Incentives for Renewables and Efficiency for the most up-to-date details.
The outcomes speak for themselves – with the right sunlight exposure and investable capital available, adding residential solar in Hawaii can pay off in less than a decade while insulating you from rising utility expenses.
I hope this resident‘s guide proves useful as you evaluate solar panels for your Hawaiin home! Please don‘t hesitate to reach out if any other questions come up. Aloha!
