Hawaii’s solar industry continues to soar despite new tax credit rules that went into effect at the beginning of this year. Critics warned that the new rules — which limit the number of credits that can be claimed on solar arrays — would cripple sales and lead to widespread layoffs among solar companies. 

However, data from Hawaii’s Department of Business, Economic Development and Tourism so far suggests otherwise. 

On Oahu, the number of permits issued this year for solar systems is 54 percent higher, compared to the same period last year; and 133 percent higher for commercial systems. 

The total, year-to-date value of residential and commercial solar systems is about 40 percent higher than last year.

But not everyone is convinced that the numbers are indicative of long-term trends.

David Henkin, an attorney for Earthjustice, which along with the Hawaii Sierra Club, is suing the state for issuing the new rules, warns that the data covers a limited time period. He said that the surge in residential sales might be a result of customers rushing to take advantage of free building permits and that in general, decreasing the tax incentive will mean fewer projects coming online over the long term. 

Meanwhile, the Legislature is wrestling with whether or not to scale back the solar tax credits. The Abercrombie administration has raised concerns about the amount of money the incentives are costing the state — in 2012, the credits are estimated to have cost Hawaii $174 million. 

The full stats from DBEDT can be viewed here (pdf).

(Photo: ProVision Solar)

— Sophie Cocke