Solar Water Heating
Your home’s largest energy consumer is your electric water heater. Switching to a more energy-efficient option can save you up to 40% on your electric bill. Rebates are offered by Hawaii Energy to help qualifying Hawaii residents save money on installing new solar water heating systems.
How Solar Water Heating Works
A solar water heating system uses energy from the sun to heat water, so your water heater uses less electricity to do the same work. A solar water heating system is designed to meet an average of 90% of your hot water needs over the course of a year, with the remaining 10% provided by electrical backup.
The major components of a solar water heating system are:
- Solar collector panels
- Hot water tank
- Electrical backup heating element
- Electrical timer
- Temperature sensors
- Thermostat
When the temperature sensors determine that the collector is hot enough to heat water, cool water from the tank is pumped to the collector, where it is heated by the suns energy, and then returned to the tank. This cycle continues throughout the solar day (9:00am - 3:00pm), as cool water from the tank gets replaced by hot water from the collector until all the water in the tank is hot.
During consecutive days of cloudy or rainy weather, your system will rely on the electrical backup heating element. If the temperature sensors determine that the solar collector is not hot enough to heat water in the tank, the water will instead be heated by the electrical backup heating element.
Estimated Cost Savings
In Hawaii, the average solar water heating system can cost about $9,200 depending on the tank size and need. With these programs provided by Hawaii Energy, owning and installing a solar water heating system in your home can be both easy and affordable.
$2,000 Instant Rebate
This instant rebate immediately reduces the amount you pay to your contractor. Work with one of the participating Clean Energy Allies to receive the instant rebate.
Hot Water, Cool Rates Financing
For a limited time, Hawaii Energy is offering a $2,000 incentive for Participating Lenders to buy down the interest on your loan for a new solar water heating system. The lender will then provide you with a zero or low interest rate loan depending on your credit and/or the financial institution.
Sample Cost Savings
| Estimated system cost | $9,200.00 |
|---|---|
| Hawaii Energy instant rebate | - $2,000.00 |
| SUBTOTAL | $7,200.00 |
| Your deductions on income taxes: | |
| 30% Federal Tax Credit for 2025 | - $2,160.00 |
| 35% State Tax Credit for 2025 (Capped at $2,250) | - $2,250.00 |
| Total Cost with Tax Credits | $2,790.00 |
Maui Solar Water Heating Financing
In partnership with the County of Maui, we are offering an interest-free program for solar water heating systems to qualifying Maui County residents. For more information, you may reach us at msri@hawaiianelectric.com.
