Hawaii solar companies say Trump’s proposed tax credit cut is a blow to business
HONOLULU (HawaiiNewsNow) — Hawaii solar companies are racing to hook up new customers before the Trump Administration changes the rules on a major tax incentive.
President Donald Trump’s budget bill, advancing through Congress this week, sharply reduces access to a 30% tax credit for solar and wind power projects.
To get the subsidy, certain materials have to be made in the U.S., and construction must begin within the next year.
As homeowners scramble to secure systems before the incentive could sunset, some installers reported their calls have tripled. Ongoing permit delays across the islands are complicating the process.
“The clock is ticking and we really do need to work expeditiously to get projects in if they want to claim that 30 percent credit,” said Rocky Mould of the Hawaii Solar Energy Association.
Joshua Powell, CEO of Revolusun, said the company is trying to keep up with the surge in demand for solar.
“There’s only so much we can take on and make sure that we’re going to be able to keep commitments we make to our customers,” Powell said. “We don’t want to let anyone down when you’re facing a real deadline.”
If the bill passes, industry experts predict the rush in the market could dip after the next several months.
“Based on where the credits are right now, it’s not going to be better than it is today in terms of the credits,” Powell added.
Top contractors, such as Powell, plan to pivot to other services, such as panel maintenance and storage.
Revolusun has already taken on roofing and air conditioning.
Like Powell, Chris DeBone of Hawaii Energy Connection is confident that bigger clean energy corporations will survive.
“We’re in Hawaii, we’re one of the few states that has abundant sunshine, high electric rates, and a state tax credit,” DeBone said.
Hawaii’s incentive is 35%, which DeBone said is not enough for low to moderate-income families.
“That’s the market we’re trying to help; those are the families that need it the most,” DeBone said.
It is unclear how smaller solar companies will fare if the proposal passes, but if it does, supporters argue Hawaii already has enough incentives.
“I think that will help our local residents, but I think the federal government right now, is trying to make sure that we are energy independent and dominant,” Rep. Diamond Garcia said.
The Senate bill preserves tax credits for nuclear, hydropower, and geothermal projects, which are favored by the Trump administration, in part because they do not rely on weather conditions.
Meanwhile, the association says those who lease their solar system will still be able to claim the credit through 2027.
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