The governor signed a bill into law on May 21 that will not only phase out solar credits but also affect projects already in the pipeline.
It was another blow following the move to end the federal solar tax credits.
Rocky Mould is the executive director of the Hawaii Solar Energy Association. He is pushing for a special session to fix the problem.
“This is an emergency right now,” Mould said. “What we're asking for is some kind of fix implemented through a special session or some other way to fix this retroactive provision that's in it right now.”
It is unclear whether the retroactive provision will hold, Mould explained, but projects that had already been contracted or installed are at risk of redesign or cancellation altogether.
“Projects on nonprofit, projects on affordable housing, community health centers, water infrastructure, small businesses, as well as residences," he said. "And we count something on the order of 250 projects, not including residential, 250 larger-scale projects at these nonprofits and community health centers that are at jeopardy, representing something on the lines of like $450 million worth of investment value that is at risk."
Although lawmakers appropriated funding for these solar projects, removing the credits could jeopardize their viability.
“We do think the most immediate emergency that we need to address is this retroactivity provision, and we really have a ticking clock on that until July 4, so really it's a matter of days to fix this retroactivity situation, and once we get clarity on that, we can move forward and think about longer term durable solutions that would represent a more reasonable phase down of the tax credit over time, in alignment with Hawaiʻi's goals, in alignment with the need for affordability, and renewable energy,” Mould said.
HSEA is urging lawmakers to convene a special legislative session to discuss the bill's impact.
“I'm not sure folks really get how damaging this bill ended up,” Mould said. “And so we're trying to educate folks on what we see as the most damaging impacts of this bill. It's being touted as a reasonable sort of compromise to balance the budget, but it really is potentially taking away one of our most valuable tools for fighting affordability and helping those same people that they're trying to help.”
This story aired on The Conversation on May 27, 2026. The Conversation airs weekdays at 11 a.m. Hannah Kaʻiulani Coburn adapted this story for the web.
