Business Monday: Companies see influx of residential rooftop solar jobs as federal tax credits end in December

With customers rushing to finish residential rooftop solar installations and battery storage systems before the early expiration of a 30% federal tax credit, Hawaiian Electric and the County of Hawaiʻi are ramping up their efforts to approve an influx of applications for the credits and permits for the work.

The Residential Clean Energy Tax Credit was initially available to homeowners until the end of 2032. However, under the Trump Administration, that credit now is ending on Dec. 31.

Hawaiian Electric received 1,151 applications in its service areas throughout the state to install residential rooftop solar and battery storage systems in July, up sharply from the 683 in June, according to a news release from the power company. Applications in July were the highest for any month since March 2024.

Permits for rooftop solar are approved through the individual counties. Neil Azevedo, acting Public Works Director for Hawai‘i County, said his department is currently reviewing about 400 permit applications for rooftop photovoltaic permits.

“As of Sept. 1, we had approved 1,113 PV permits this year,” Azevedo said.

Kaiulani Shinsato, Hawaiian Electric Customer Energy Resources co-director, said the company is committed to processing applications as quickly as possible to help customers who want to install and energize their systems by the end of the year.

“Customer-sited solar and battery storage is a priority for Hawaiian Electric because these systems are key to reaching Hawai‘i’s decarbonization and clean energy goals,” Shinsato said.

Solar companies confirm this uptick in Hawai‘i residents seeking solar. Marco Mangelsdorf, a managing employee with Pro Vision Solar, said the recent interest in solar has been “phenomenal.”

Manglesdorf said their Big Island operation has seen record sales, with an estimated uptick of 30% to 50% for the past few months for homeowners wanting to take advantage of the tax credit before it expires.

Manglesdorf said Hawai‘i County’s permitting process has improved and he hopes it continues.

“We’re dead in the water without having permits to do our work,” he said.

Improving the permit review and approval process has been a major focus of the county department and administration, Azevedo said.

“For example, during the first half of this year, residential rooftop solar permits were on average approved in just over a month, a 61% improvement from the first half of 2024, Azevedo said.

Azevedo recommended that applicants submit their PV permits by Oct. 1 to allow sufficient time for review, issuance and installation in order to meet the deadline for federal tax credits.

To further streamline the permit review process, the county is currently considering a pilot program that would allow residential PV permits to be approved through the application intake process. This program is currently under review, and officials don’t have a launch date at this time.

Hawaiian Electric recently achieved a major clean energy milestone as the amount of rooftop solar and battery storage surpassed 1 gigawatt of installed capacity across the five islands the company serves. As a result of the high solar penetration, an estimated 44% of single-family homes served by Hawaiian Electric have rooftop solar, the company said.

“Hawai‘i’s leadership in rooftop solar and storage shows how local action can deliver affordable clean energy and resilience,” said Rocky Mould, executive director of the Hawai‘i Solar Energy Association. “We appreciate Hawaiian Electric’s quick response in listening to the solar industry and accommodating this surge in demand.

“As federal support fades, reducing interconnection and permitting costs can ensure these resources keep paying off for customers, the grid and our islands as a whole.”

Hawaiian Electric customers seeking to install a grid-connected solar or battery storage system can apply through the company’s Smart Renewable Energy program. More information is available at hawaiianelectric.com/smartprograms.