Hawaiian Electric replaced traditional net metering with its Smart Renewable Energy (Smart DER) program in April 2024. All new rooftop solar customers on Oahu enroll in one of two tracks. The Export track credits energy sent to the grid at time-of-use rates that vary by time of day — daytime solar production hours earn lower credits while evening peak hours (roughly 4–9 p.m.) earn higher credits. The Non-Export track is designed for self-consumption only: your system powers your home directly and any excess power is curtailed rather than exported, with no export credit at all. Export credits accumulate monthly and roll over, but any remaining balance is zeroed out at an annual true-up — unlike traditional net metering where credits could carry indefinitely. Export rates are locked in for the first seven years of a new interconnection agreement and updated every three years thereafter. Customers who enrolled in older programs (Customer Grid-Supply, CGS Plus, Smart Export) are required to transition to Smart DER within seven years of their original agreement date, starting October 1, 2024. The handful of customers still on original Net Energy Metering or NEM Plus are exempt from this transition and retain their existing billing terms.
In most mainland solar markets, battery storage is optional — primarily a resilience tool for grid outages. In Honolulu, battery storage is a financial strategy as much as a resilience tool, and a high percentage of new solar installations include one. Here is why the math works: your solar panels produce the most electricity between roughly 9 a.m. and 4 p.m., the same window when HECO’s grid is already well-supplied with solar. Export credits during those daytime hours are relatively low. Your home’s energy demand peaks in the morning and evening — exactly when production is low or zero. A battery captures surplus midday production and delivers it during evening peak hours, when it is worth far more both in avoided retail purchases (43 cents per kWh) and in export credits if you are on the Export track. The Bring Your Own Device Plus (BYOD Plus) program adds a financial incentive layer: HECO pays an upfront credit of $100 per committed kilowatt (up to $500) plus $5 per committed kilowatt per month for customers who allow the utility to dispatch their battery during grid stress events. Battery storage also addresses Honolulu’s real resilience needs — the island grid has no mainland interconnection, and extended outages after severe weather are a genuine risk. A grid-tied solar system without battery shuts off automatically during outages by design; battery storage keeps your home powered.
As of early 2026, the average solar installation in Hawaii costs approximately $3.24 per watt installed, putting a typical 8.6 kW system at around $27,900 before incentives. Hawaii’s high rates mean systems tend to be smaller than in lower-rate states — right-sizing to your actual self-consumption is more important than maximizing system size under a true net metering structure. Two meaningful incentives reduce costs significantly. Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC) provides a state income tax credit equal to 35% of system cost, capped at $5,000 per 5 kW increment — so an 8.6 kW system can qualify for up to $10,000 in state tax credits by spanning two 5 kW thresholds. The federal residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for systems installed in 2026. Hawaii also exempts solar installations from property tax assessment increases for 25 years, meaning a system that adds market value to your home will not raise your property tax bill. After the state tax credit, a typical Honolulu system nets out around $17,900–$22,000 depending on size and configuration. The EnergySage payback period for Hawaii is approximately 9.1 years — but given that HECO has announced a rate case proceeding that could bring further increases by end of 2026, the effective payback for new systems could improve as rates rise.
