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Hawaiʻi is racing to install rooftop solar before the tax credit sunsets

FILE - In this 2016 photo, an installer for RevoluSun works on a solar panel installation on a roof in Honolulu. (AP Photo/Cathy Bussewitz)
Cathy Bussewitz/AP
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AP
FILE - In this 2016 photo, an installer for RevoluSun works on a solar panel installation on a roof in Honolulu. (AP Photo/Cathy Bussewitz)

A federal tax credit for rooftop solar is going away at the end of the year.

Hawaiian Electric said it's seen a spike in applications for new systems as customers try to beat the deadline.

HECO received over 1,100 applications in July for new residential solar and battery-storage systems, which is almost twice as many applications as customers filed in June.

On July 4, President Donald Trump signed into law the One Big Beautiful Bill Act. It phases out a federal incentive that covers 30% of the cost of new rooftop solar and storage units.

That tax credit was originally set to expire in 2032. Those systems now need to be fully paid for and installed by Dec. 31 in order to qualify.

HECO said it's anticipating an increased number of applications as the end of the year approaches.

In a statement, the utility said it is committed to processing applications as quickly as possible.

"Customer-sited solar and battery storage is a priority for Hawaiian Electric because these systems are key to reaching Hawai‘i’s decarbonization and clean energy goals," said Kaiulani Shinsato, Hawaiian Electric Customer Energy Resources co-director.

A federal incentive for electric vehicles is phasing out even sooner — customers only have until Sept. 30 to get up to $7,500 back for a new EV, or $4,000 for a used electric car.

Savannah Harriman-Pote is the energy and climate change reporter. She is also the lead producer of HPR's "This Is Our Hawaiʻi" podcast. Contact her at sharrimanpote@hawaiipublicradio.org.
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