With energy costs in Hawaii being the most expensive in the nation, looking at the potential cost of your monthly energy bill is as important as considering other large expenses for your home like HOA fees and taxes. While LUVA Real Estate focuses on helping you find the home of your dreams, there are a few companies in West Hawaii that can help you understand the costs of solar so you can control your monthly energy costs.
First some background information:
Solar costs have declined significantly, and are at their lowest point in over 30 years. Solar is now more affordable than ever and advances in technology have improved system quality and design. In 2017, there was more new solar power capacity created than any other type of energy, according to a report from the United Nations Environment Programme. Good news also in 2018, is the PUC has worked with the local energy provider, HElCO, to allow homeowners to place their extra energy back onto the energy grid.
IN 2017, THERE WAS MORE NEW SOLAR POWER CAPACITY CREATED THAN ANY OTHER TYPE OF ENERGY
One way to bring down the cost of residential solar is to take advantage of tax credits, which fortunately survived the Tax Cuts and Jobs Act of 2018.
How does the Solar Investment Tax Credit Work?
A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. Both the residential and commercial ITC are equal to 30 percent of the basis that is invested in eligible property which have commenced construction through 2019.
The long-term extension of the ITC through 2021 provides market certainty for companies to develop long-term investments that drive competition and technological innovation, which in turn, lowers costs for consumers.
For more information about the Solar Investment Tax Credit, go here.
On average the total cost of solar installation can be between $15,000 to $29,000 for average sized systems sized between 4kW and 8kW.2
On Hawaii Island, you have a few choices. Sunrun solar lets you get started for as little as $0 down and helps you lower your electric bill by leasing you the system and you pay a set monthly fee for 20 years. That way, you are being “green” and feeding back into the energy grid AND you are immune from Hawaiian Electric and Light Company raising their energy fees, which happens from time to time based on infrastructure needs, etc. They also sell you the system and they also sell solar batteries. More info at https://www.sunrun.com
ProVision Solar has information about how and when you can put energy onto the HELCO grid and they also sell Tesla PowerWalls for energy storage. https://provisionsolar.com/now-cgs-program-closed-comes-next-solar-hawaii/
Go right to source if you want to export energy back onto the grid to help save in energy costs by reviewing HELCO’s program guidelines. https://www.hawaiianelectric.com/products-and-services/customer-renewable-programs
Beyond solar, getting tankless water heaters, using energy efficient appliances, LED lighting and more will help lower your monthly energy bill. Check out this link for rebates for your energy efficient efforts and to learn more ways to save energy. https://hawaiienergy.com/for-homes/rebates
LUVA Real Estate is here to help you understand the true costs of purchasing a home and living in Hawaii. Let us work with you to ensure your dreams meet the reality of homeownership and allow us to utilize our network of service providers and resources to assist you.