Gov. Green signs executive order protecting solar tax credits
HONOLULU (HawaiiNewsNow) – Hawaii Gov. Josh Green has signed an executive order protecting tax credits for hundreds of solar energy projects.
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Green signed on Friday, which his office said effectively preserves the solar tax credit changed by Act 24 for 2026, addressing concerns expressed by the solar industry while respecting the legislative changes for 2027 and beyond.
“Executive Order 26-02 recognizes the critical importance of maximizing distributed solar resources, particularly on Oahu,” said Chief Energy Officer Mark Glick. “This immediate relief also provides the solar industry with an opening to design innovative proposals for the 2027 legislative session.”
Act 24 was passed by the state legislature, which threatened to strip those credits from private and public projects that had already invested about $400 million, thinking they would get the tax benefits.
In May, the change to Hawaii’s solar energy tax credit prompted calls from lawmakers and industry leaders for a special legislative session, warning the move could affect hundreds of renewable energy projects already underway.
Related post: Proposed change to Hawaii solar tax credit raises concern over ongoing projects
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The state said Hawaii ranks first in the nation in per-capita residential rooftop solar adoption, with rooftop systems covering close to half of Hawaii’s households statewide.
Solar system use reduces demand on the power grid and puts downward pressure on rates for all customers, including renters and lower-income families who have not yet installed their own systems, the state said.
“Families, businesses and non-profits with solar have been able to cut their electricity bills by hundreds of dollars per month,” said Hawaii Solar Energy Association Executive Director Rocky Mould. “With each installation, Hawaii’s grid becomes cleaner and more resilient — community by community, rooftop by rooftop.”
The order confirms renewable energy technology system was placed into service in the 2026 calendar year and will not be subject to the annual $40 million aggregate cap imposed by Act 24.
The governor’s office said the executive order was prepared in consultation with the Hawaii State Energy Office, the Department of Taxation and the Department of the Attorney General.
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