Solar panel payback in Hawaii

5.9 years for a typical home solar system in Hawaii to pay for itself, with no federal tax credit.

A 4.5 kW system sized for the average home here, which uses 509 kWh a month, costs about $12,600 at $2.80 per watt. It saves about $1,998 in its first year, and after 25 years it is $55,846 ahead. That is the fastest payback of the 50 states and DC.

Prices updated October 2026 from EIA, AAA and BLS data.

Your state

Electricity price

¢/kWh

Monthly electricity use

kWh

System size

Installed cost

$/W

2026 quotes average $2.60 to $3.00.

State and local incentives

Rebates or state tax credits.

Export credit

% of retail

Output, rate increases and upkeep

Yearly output per kW

kWh/kW

Output used as it is made

The rest goes to the grid. Higher if you are home by day.

Yearly electricity price rise

U.S. prices rose 5% in the past year.

Panel output loss per year

Inverter replacement in year 12

Set to 0 if your inverter warranty runs 25 years.

How Hawaii compares

Hawaii ranks 1st of 51 for solar payback, fastest first. The fastest is Hawaii at 5.9 years. At U.S. average figures, payback is 12.3 years.

Two things set payback: what each kWh is worth and how many the panels make. Hawaii ranks 1st for electricity price, most expensive first, at 48.00¢/kWh, and 7th for sunshine, at an estimated 1,500 kWh a year per kW of panels. Both work in its favor: power above the U.S. average price and more sun than average.

Power sent to the grid in Hawaii is credited well below the retail price, so the calculator assumes 30% of retail instead of the 75% it uses for most states. That slows payback, and using more of your own power as it is made, or adding a battery, matters more here.

Solar pays back faster here than in any other Western state; next is California at 7.7 years.

State	Electricity	Sun, kWh/kW	Payback
Hawaii	48.00¢	1,500	5.9 yrs
California	33.61¢	1,600	7.7 yrs
Alaska	28.83¢	850	12.3 yrs
Oregon	15.97¢	1,250	14.6 yrs
Washington	14.71¢	1,100	17.2 yrs

More for Hawaii

EV charging cost in Hawaii vs gas: an EV saves $66 a year on fuel.
Heat pump vs gas in Hawaii: a heat pump costs $102 a year more.

What these numbers assume

A 4.5 kW system, sized to cover about 100% of a typical home's yearly use.
$2.80 per watt installed, paid in cash, with no state or local incentives entered.
No federal tax credit: Section 25D ended for systems placed in service after December 31, 2025.
Half the output used in the home as it is made; the rest credited at 30% of the retail price.
Electricity prices rising 3% a year, panels losing 0.5% of output a year, and a $2,000 inverter replacement in year 12.

Change any of them in the calculator above to match your own bills. The formulas are on the main solar payback calculator.

Sources

Electricity price: EIA Electric Power Monthly, Table 5.6.A (July 2026 data).
Household use: EIA 2025 retail sales divided by customers.
Installed cost: 2026 residential marketplace averages.
Output per kW: MeterMath estimate for a south-facing fixed roof system, rounded.
Export credit: Hawaii Public Utilities Commission, which closed retail net metering to new customers in October 2015.
Tax credit status: Public Law 119-21.