Full Breakdown
Rooftop Solar in Hawaii Faces Tight Deadline Amid Tax Credit Changes
10/2/2025, 4:48:14 PM
Impending Deadline for Federal Tax Credit
Hawai‘i residents interested in installing rooftop solar systems are facing a critical deadline. The federal investment tax credit, which provides a 30% reduction in the cost of new solar and storage systems, is set to expire on December 31, 2025. To qualify, systems must be fully installed by this date. However, installation timelines vary significantly across the islands, with estimates ranging from two to four months on neighbor islands and four to six months on O‘ahu. As a result, many residents may already be too late to benefit from the tax credit.
Surge in Demand and Capacity Challenges
The urgency surrounding the tax credit has led to a surge in demand for residential solar installations. Following the enactment of the One Big Beautiful Bill Act by President Donald Trump on July 4, 2025, which accelerated the tax credit's expiration, solar companies have reported unprecedented sales. David Gorman, head of the residential division at RevoluSun, noted that his company achieved six months' worth of sales in just July. However, many solar companies are now fully booked through the end of the year, limiting new customer opportunities.
Matias Bessaso, CEO of Rising Sun Solar, highlighted the challenges faced by his company, particularly in Maui, where demand has surged post-2023 fires. Despite the high demand, Rising Sun has had to downsize its workforce, complicating its ability to meet installation needs.
Options for Latecomers
Some solar companies are attempting to accommodate latecomers. Joshua Mason, owner of Blue Sky Energy on Hawai‘i Island, is expanding his business's capacity to meet the needs of customers rushing to install systems before the deadline. He has assured customers that if their projects cannot be completed in time, they will not be obligated to proceed in 2026. Meanwhile, Solar Kaua‘i is still accepting new clients but warns that larger installations may face lengthy permitting processes.
Rocky Mould, executive director of the Hawai‘i Solar Energy Association, expressed concern over the elimination of the tax credit, stating it would negatively impact both customers and the industry. However, he believes that rooftop solar will still be a viable option for homeowners in 2026 due to Hawai‘i's high electricity costs.
Criticism and Future Outlook
Critics of the tax credit's expiration argue that it will hinder the growth of the solar industry in Hawai‘i. Many companies are bracing for a decline in business in the new year, with some planning to shift their focus to the commercial market. Despite these challenges, Solar Kaua‘i remains committed to its current business model, emphasizing resilience in the face of industry fluctuations.
As the deadline approaches, homeowners are urged to act quickly if they wish to take advantage of the federal tax credit, while solar companies prepare for a potential shift in market dynamics post-2025.
