Are you confused by rumors and misinformation about the changes to the state solar tax credit?

Alternate Energy was the 2012 No. 1 residential solar contractor in the state. The company has been installing solar systems for Hawaii families for 20 years, and always operates in the best interest of their customers, friends and family. So what’s the final word from Alternate Energy on the changes to the tax credits?

It’s a fact that Hawaii’s generous 35 percent solar tax credit, and even multiple state tax credits, are still available.


That’s right. A 35 percent or $5,000 maximum state solar tax credit (among the most generous in the nation) is still available per system per year. And multiple system tax credits are available for each qualifying system installed in a tax year.

The major change to the tax credit comes from the way a “system” is defined. According to the Temporary Administrative Rules that took effect Nov. 16, 2012, a system is now defined by its total power output capacity rather than by the number of independent physical connections to the grid.


Each system for which a credit is claimed must have a total power output capacity of at least 5 kilowatts before a homeowner can claim a second system for tax credit purposes.

This new structure can actually reduce your upfront cost by reducing the need for multiple electrical hookups, additional inverters and installation labor associated with setting up several “systems” as defined by the old rules. All while keeping your rate of payback about the same at just three to five years.


Financing is getting easier, too. Alternate Energy recently announced an attractive new financing partnership with Central Pacific Bank, called the PV Power Loan. Visit for details or ask the friendly staff at Alternate Energy.

Here’s the bottom line: “All the uproar about changes to the solar tax credit resulted in a lot of conjecture and confusion,” said Bruce Ekimura, founder of Alternate Energy. “In actuality, there will be no measureable difference for most purchases — and even a savings in some cases.”

So there you have it. If reducing energy bills is the goal, solar PV from Alternate Energy is still the best investment Hawaii homeowners can make.


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