Sunetric has been working since 2004 to bring photovoltaic installations to hundreds of Hawaii homeowners and business who have enjoyed greatly reduced — and sometimes completely eliminated — electric bills.

Thanks to generous state and federal tax incentives and loan programs now now is perhaps the best time ever to invest in rooftop solar photovoltaic panels if you own a home or operate a business in Hawaii. Here is a list of some of the incentives currently available to residential and commercial customers. Call us today at 808-262-6600 to find out how you can begin to take advantage of these discounts!

Tax Credits

 Residential

• Federal
  • 30 % Federal Tax Credit: The Energy Policy Act of 2005 (H.R. 6, Sec. 1335) established a 30% tax credit for the purchase and installation of residential solar electric systems. Individuals may take a 30% credit for each photovoltaic system. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. To be eligible for the credit, a system must be “placed in service” or activated on or after January 1, 2009, and on or before December 31, 2016. (Note: There is no longer a $2,000 cap on qualified solar electric property expenditures for systems installed after December 31, 2008.)
  • 30 % Federal Tax Grant: Federal incentives are available as either a 30% tax credit or as a 30% cash grant, but the cash grant program expires at the end of 2010.
• State:
  • 35 % Hawaii State Tax Credit: There is a state tax credit for 35 percent of the cost of equipment and installation of a solar PV system. No set expiration date but as supplies last. A credit that exceeds the taxpayer’s income tax liability may be carried forward to subsequent years until exhausted. Credits are capped based on property and system type as follows (read more).
  • 24 % Hawaii State Refundable Tax Credit: The Governor recently signed Senate Bill 464, which makes the state renewable energy credit refundable for taxpayers who agree to accept a lower credit of 24.5%.

Commercial

• Federal:
  • 30 % Federal Business Solar Tax Credit: The federal government allows businesses to take a credit worth 30 percent of the installed cost of solar photovoltaic systems through December 31, 2016. The five-year accelerated depreciation allowance for solar property is permanent. This incentive is also available as a 30 percent tax grant until the end of 2010. (See key provisions)
• State:
  • 35 % Hawaii Renewable Energy Tax Credit: Hawaii allows businesses to take a credit worth 35 percent of the installed cost of photovoltaic systems for the tax year that the system is placed in service. The credit has no sunset date and can be carried forward to offset taxes in subsequent tax years. The Governor also recently signed Senate Bill 464, which makes the state renewable energy credit refundable for taxpayers who agree to accept a lower credit of 24.5%.  (See key provisions)
• MACRS – Moderated Accelerated Cost-Recovery Systems (Federal and State): Both the Federal Government and the State of Hawaii allow solar systems to be fully deducted over a five-year lifetime. The schedule for this ‘five year property’ actually unfolds over six years to account for the fact that systems are not operational from the first day of Year 1. The value of the accelerated depreciation schedule depends on the tax rate of the entity purchasing the credits. Under MACRS, solar equipment is treated for depreciation purposes as follows:
  • Depreciation is front-loaded in 2008 relative to previous years because solar equipment qualifies for 2008 ‘bonus’ depreciation of 50%. This bonus reduces the remaining depreciation schedule by half in Years 1 through 6. In 2009, the depreciation schedule is the same as in earlier years, however, when the federal tax credit falls to 10% the depreciable basis of the project rises from 85% to 95% of the installed cost.

Green Loans

• UH Federal Credit Union is now offering Green Loans. Find out more here.