RevoluSun Blog

Earlier this year, Hawaiʻi’s solar industry, homeowners, and clean energy advocates found themselves facing an unexpected challenge.

SB 3125 proposed significant changes to the state’s Renewable Energy Technologies Income Tax Credit (RETITC), including new caps and a phaseout schedule that many feared would make solar less accessible for local families. Thousands of homeowners, businesses, and industry professionals voiced concerns about the potential impact on Hawaiʻi’s clean energy future.

Although the bill ultimately passed and became Act 24, the conversation didn’t end there.

Following widespread public feedback, Governor Green signed Executive Order 26-02 in June 2026, preserving Hawaiʻi’s solar tax credit through the end of 2026 and postponing the implementation of Act 24’s changes until 2027.

Here’s what happened—and what it means if you’re considering solar or battery storage.

What Happened

The legislation ultimately passed and became Act 24. It capped the state’s solar tax credit at $40 million per year and, in its most disruptive move, applied that cap retroactively to 2026, putting projects that were already underway at risk. The solar industry warned that 256 projects valued at about $436 million were suddenly in jeopardy, as investors began pulling out of deals that relied on the credit. The projects at risk ranged from condominium complexes and small businesses to health clinics and hotels.

After significant concern from the solar industry, businesses, and the broader community, Governor Green took action. In June 2026, he signed Executive Order 26-02, preserving the credit for 2026 for projects completed or already in the works before May 21, 2026. The $40 million annual cap still applies in future years, and under current law the credit is scheduled to be phased out entirely by 2030.

In plain terms: the credit that was suddenly at risk is preserved for this year.

What It Means for Homeowners

If you’ve been considering solar or battery storage, here’s the bottom line:

• The 35% state solar tax credit (the Renewable Energy Technologies Income Tax Credit) remains available for qualifying 2026 projects.
• The $40 million annual cap returns in future years, and under current law the credit is scheduled to end by 2030.
• That makes 2026 an important window to move forward under today’s credit.

We always recommend talking with a tax professional about how the credit applies to your specific situation. But the headline is simple: the door is open for 2026, and it begins to close after that.

Mahalo to those of you that spoke up!

This is what community advocacy looks like. When homeowners, small businesses, and neighbors raise their voices together, it makes a difference, and this time it helped protect a credit that has helped tens of thousands of Hawaiʻi families lower their energy bills.

Want to read more? Civil Beat covered the Governor’s decision, the Hawaiʻi State Energy Office published the details of Executive Order 26-02, and Hawaiʻi Public Radio discussed the Governor’s broader veto decisions.

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Thinking about going solar in 2026?

With changes coming in 2027, now is a good time to explore your options. Our local team can walk you through what solar and storage would look like for your home, and how the current credit applies.

More than 10,000 Hawaiʻi homeowners have invested in solar with RevoluSun over the past two decades to reduce their energy costs and gain greater control over rising electricity rates. The extension of the current tax credit gives homeowners one more year to take advantage of one of Hawaiʻi’s most effective clean energy incentives before scheduled changes begin in 2027.

Talk to Our Team

RevoluSun · Powering Hawaiʻi since 2009 · 808.748.8888 · revolusun.com