{"id":729,"date":"2026-06-23T11:36:30","date_gmt":"2026-06-23T11:36:30","guid":{"rendered":"https:\/\/movingtohawaiiguide.com\/?p=729"},"modified":"2026-06-23T11:36:30","modified_gmt":"2026-06-23T11:36:30","slug":"fear-and-uncertainty-in-hawaiis-solar-industry-amid-changes-to-tax-credits","status":"publish","type":"post","link":"https:\/\/movingtohawaiiguide.com\/?p=729","title":{"rendered":"Fear and uncertainty in Hawaii\u2019s solar industry amid changes to tax credits"},"content":{"rendered":"
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It has been a tumultuous time for the solar industry in Hawaii following recent changes at both the federal and state level.<\/p>\n

Read more Argentina\u2019s Lionel Messi breaks World Cup goals record vs. Austria<\/a><\/p>\n<\/div>\n

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It has been a tumultuous time for the solar industry in Hawaii following recent changes at both the federal and state level.<\/p>\n

Gov. Josh Green signed a bill into law in May to effectively end tax credits for solar installations by 2030, and significantly reduce and cap them in the meantime. He partially walked back the move this month,<\/strong> signing an executive order to preserve promised credits for solar projects for this year, following pushback from industry leaders.<\/p>\n

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The back and forth, combined with the rollback of federal renewable energy incentives, has resulted in uncertainty and concern for solar energy providers across the state and local companies on Hawaii Island, including Honoka\u2018a-based Renewable Energy Services.<\/p>\n

\u201cWe\u2019ve been in business here on the Big Island for coming up on 35 years, so we\u2019re used to seeing a lot of ups and downs in our industry,\u201d said RES President Roland Shackelford. \u201cBut getting the loss of the federal tax credit this year, and then the state tax credit right after\u2026 was just really unfortunate, and a big surprise to our industry.\u201d<\/p>\n

He said the company\u2019s business had already noticeably decreased following the federal cuts, and customers expressed concern about moving forward with projects amid the changes at the state level.<\/p>\n

\u201cWe already had about a 30% drop just from the loss of the federal tax credit, and we\u2019ve seen that even increase now. In our conversations with homeowners, it creates this thing of, \u2018well, maybe I\u2019ll wait\u2019 \u2026 and so it just creates a downtime in the industry where people aren\u2019t ready to move forward,\u201d he said.<\/p>\n

Shackelford said he expects the impacts to reverberate throughout the local and state economy.<\/p>\n

\u201cWe run a family-owned and operated business here in Honoka\u2018a that provides high-quality jobs to 23 individuals, and with the loss of this tax credit, they\u2019re putting their jobs in jeopardy, as well as providing those economic and security benefits to the rest of the island,\u201d he said. \u201cIt\u2019s unfortunate. It\u2019s moving in the wrong direction for our state here in Hawaii.\u201d<\/p>\n

The state\u2019s renewable energy solar incentives previously covered up to 35% of costs for eligible projects. The recent cuts to this tax credit were part of Act 24, which also included other measures aimed at preserving tax relief for middle- to low-income households following a projected nearly $3 billion state revenue shortfall.<\/p>\n

Shackelford, who is also a board member for the Hawaii Solar Energy Association, feels this is part of the reason the bill passed and was signed into law by the governor, and why efforts to stop it were not successful.<\/p>\n

\u201cOn the HSEA side and on the business side, trying to write to our different legislators, asking for them to say no to this, their response was that they couldn\u2019t, because it was coupled with so many other things,\u201d he said. \u201cI think that\u2019s the incorrect political way of going through things \u2026 that we can\u2019t say no to something bad because it\u2019s coupled with other good.\u201d<\/p>\n

Marco Mangelsdorf of ProVision Solar, another Big Island-based solar company, echoed this assessment.<\/p>\n

While he said the governor\u2019s executive order undid what he viewed as the most egregious element of Act 24 \u2014 the retroactive nature of the cuts, which would have applied to projects already underway \u2014 he does not think it is sufficient.<\/p>\n

Read more Hawaii utilities work to strengthen grid resiliency<\/a><\/p>\n

\u201cThe order fixes what was a stunning flaw in the bill that generated great uncertainty for those who had committed to going solar prior to Act 24 going into law,\u201d Mangelsdorf wrote in a statement to the Tribune-Herald. <\/p>\n

Green\u2019s executive order also states that solar systems installed in 2026 shall not be subject to a $40 million aggregate cap on allowable tax credits created by the law.<\/p>\n

\u201cSo, no cap this year, which consumers and we in the solar industry can be grateful for,\u201d Mangelsdorf wrote. \u201cThat said, a lot of work needs to be done to try and fix the rest of Act 24 in the next state legislative session in 2027.\u201d<\/p>\n

While he said he is confident in his business\u2019 ability to weather the changes, he is concerned about the impact of the legislation on solar and renewable energy across the state more broadly.<\/p>\n

\u201cI\u2019d be lying if I said I wasn\u2019t nervous about the state of affairs now, and how things are going to develop for the industry as a whole\u2026\u201d he said. \u201cWe have to do the best we can as an industry with the cards that we\u2019ve been dealt now, first by the feds and now by the state.\u201d<\/p>\n

Noel Morin, board chair of Sustainable Energy Hawaii, said that ideally, as the solar industry develops, there will come a time when tax incentives are no longer needed. But, for now, he views them as a necessary bridge to help transition to renewable energy.<\/p>\n

\u201cAt some point in time, once there is adequate adoption of the technology, and especially given the cost of renewable energy solutions dropping, we wouldn\u2019t have to rely on incentives. But until that time, it does serve a purpose, and that is to enable the adoption of clean energy solutions,\u201d he said. \u201cWe eventually will see that the program needs to sunset, but the way they (lawmakers) are going about it is unfortunately going to create a lot of near-term economic and maybe even job issues.\u201d<\/p>\n

Additionally, he said, incentivizing solar energy installations provides economic benefits to the state.<\/p>\n

\u201cThe thing that is really unfortunate is that the reality of it is, it\u2019s not necessarily a subsidy, it\u2019s an investment that actually returns more than the taxpayers pay out in terms of the revenue from the tax base \u2014 all the economic activity associated with building solar energy systems,\u201d he said.<\/p>\n

Hawaii has set a mandate to generate 100% of the state\u2019s energy from renewable sources by 2045. Currently, the state is among the most reliant in the country on fossil fuels, with over 60% of electricity generation being powered by petroleum.<\/p>\n

However, Morin is still hopeful that this goal is possible, even with the recent changes.<\/p>\n

\u201cI think it will create some drag, I think it will create some challenges, but I think we\u2019ll find a way around it,\u201d he said. \u201cI think that there\u2019s going to be some realization that there are more affordable ways to support the economy through renewable energy, and we\u2019ll figure something out.\u201d<\/p>\n

Read more Dodgers defeat Twins, but lose Kyle Tucker and catcher Dalton Rushing during game<\/a><\/p>\n

Email Grace Inez Adams at grace.adams@hawaiitribune-herald.com.\n<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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