Maui Electric Company (MECO) is the Hawaiian Electric subsidiary serving Maui, including Kahului and most of the island’s residential customers. New solar customers enroll in Smart Renewable Energy (Smart DER), the same framework used across all HECO islands. The Export track provides time-of-use credits for energy sent to the grid — with export rates set specifically for Maui that differ from Oahu and the Big Island. Maui’s peak rates during the evening window (approximately 4–9 p.m.) are among the most favorable of any HECO island, reflecting Maui’s grid dynamics. Daytime export rates are lower, as with all HECO islands, because midday solar is already abundant. Credits carry over monthly and are settled at an annual true-up, after which unused credits expire. The Non-Export track provides self-consumption only with no export credits. Export rates are locked in for the first seven years of a new interconnection agreement. On Maui, customer-sited solar is the single largest renewable generation source available to the grid — a distinction that underscores both how far the market has come and why the export rate structure has evolved away from traditional net metering.
The August 2023 Lahaina wildfire was a turning point for Hawaiian Electric on Maui in ways that directly affect solar economics. HECO faced significant legal liability exposure from the fire, leading to a settlement that required the company to fund substantial wildfire mitigation infrastructure. The Hawaii Legislature in 2025 approved a new per-ratepayer fee — estimated at approximately $4 per month for an average Oahu customer, with similar charges on Maui — to help finance a $500 million infrastructure loan for wildfire safety upgrades. HECO also initiated a formal rate case proceeding, the first in over five years, with increases potentially taking effect before January 1, 2027. On top of the base rate case, fuel cost recovery adjustments have pushed Maui effective rates up more than 30% over the past decade. For solar customers, this trajectory is directly good news: every rate increase that occurs after your system is installed improves your financial return, because you are generating power at fixed system cost while the value of each kilowatt-hour you avoid buying from MECO rises. HECO’s wildfire mitigation work also includes extensive infrastructure upgrades on Maui, as the company has replaced thousands of utility poles and installed vegetation management systems across the island since 2024.
Solar installation costs in Maui are broadly consistent with the Hawaii statewide average — approximately $3.00–$3.24 per watt installed as of early 2026, with typical residential systems in the range of $24,000–$32,000 before incentives for a well-sized 8–10 kW system. Maui’s excellent solar resource — approximately 5.5–6.0 peak sun hours per day in Kahului, with consistent trade wind cooling that improves panel efficiency — means systems here produce among the most kilowatt-hours per installed watt of any HECO-served location. Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC) is the primary state incentive: 35% of system cost, capped at $5,000 per 5 kW increment. A system over 5 kW spans multiple increments, allowing up to $10,000 in state credits for a typical residential installation. The federal residential solar tax credit (Section 25D) expired December 31, 2025 and is not available for systems installed in 2026. Hawaii’s 25-year property tax exemption on solar-added value applies on Maui. Given MECO’s 40–44 cent rates and Maui’s strong solar resource, payback periods for well-designed systems with battery storage typically run 7–10 years, and projects installed now benefit from the full seven-year export rate lock under Smart DER.
