Why is Solar so Big in Hawaii?
Over the years, solar energy has had quite a rollercoaster ride. Technology that was once considered nothing more than a novelty in the market of energy production has, at this point, become a viable alternative to traditional means of energy production. Many factors must come together in order to make solar an option for the people of a state, including environmental factors, economic concerns, and legislative measures on the part of the state’s government. When looking at the states that benefit the most from solar energy production, Hawaii is poised to take full advantage of this renewable energy option in the coming years. Already, Hawaii is ranked 13th out of the 50 states in terms of solar energy production and, as more solar arrays are installed on the islands, this ranking is only projected to go up. In today’s post, we are going to continue where we left off last time and list out a few more factors that, when combined, make Hawaii such an excellent candidate for solar energy. Keep reading to learn more!
Solar Incentives are a Must
While having access to solar installation companies is one of the first components necessary for the residents of a state to make the switch to solar, it is far from the only factor that influences solar adoption rates. Below, we have listed out a few more factors that have helped propel Hawaii towards the adoption of solar energy.
- Incentives: One of the biggest obstacles to the installation of a solar array is the price installing a photovoltaic system. Even though most solar panel installers help their customers find a form of financing that helps cushion the financial blow of installing a solar array, many people still worry that the cost of a solar energy system is too high for them to ever see a return on their investment. Luckily, there are many tax and rebate incentives designed to address this worry. On average, a solar array costs around $20,000 dollars to have installed. With a federal tax credit of 30 percent of the cost of the system (a tax credit that has been extended until 2019), homeowners can write off $6,000 dollars from their initial investment. On top of the federal tax credit, the state of Hawaii offers a credit of 35 percent of the actual cost of the system or $5,000, whichever is less. A 5 kilowatt solar array, the most common installation, is eligible for the full $5,000, meaning that the initial investment is around $9,000 after year one. As you can see, these incentives make a solar array more affordable than most people would assume.
- Monetary Value: On top of the federal and state tax credits that are offered, homeowners who have a solar array installed can expect to save a lot of money on their yearly energy expenditures. On average, Hawaii residents can expect to save around $1,100 on their energy bill. Over the expected lifespan of the system, which falls around the 25 year mark, this results in a net profit of approximately $23,000 after the system pays for itself. Additionally, for every kilowatt of solar installed, homeowners can expect can expect almost $6,000 of additional value added to their home. This means that having a five kilowatt solar array installed can provide close to $30,000 to the retail value of your Hawaii home. Finally, installing a solar array on your home increases the chances that your home will actually sell. Where buyers may have been weary just a few years ago about buying a home with a solar array, trends have started to show that potential homebuyers are increasingly looking for homes that have these systems in place.
Thank you for taking the time to read our short blog series on the factors that contribute to the growing solar market in Hawaii. While there is still a lot of work to be done to transform Hawaii into a truly solar state, the groundwork has been laid. If you would like to learn more about the options you have in regard to solar installations in Hawaii, please visit our website today or give us a call. At Sunetric, we are dedicated to providing the best in solar installation services and we are here to help you save money, help the environment, and reduce your dependence on municipal electricity.