Blue Planet: Tax Credits Encourage Solar Adoption

By /
As the debate over the fate of Hawaii’s solar tax credits drags on in the Legislature, Blue Planet Foundation has released a new survey that says consumer adoption of solar has been boosted by solar tax incentives. 

The study, conducted by Q-Mark Research, shows the following, according to a Blue Planet Foundation press release: 

  • Seventy-nine percent of PV owners cite cost savings as the most compelling reason for installing a PV system.
  • Only one in four PV owners affirmed they still would have installed PV without a tax credit available.
  • Only 16 percent of potential PV customers said they would still install a PV system if tax credits were reduced or eliminated.
  • Ninety percent of respondents are very concerned (43%) or somewhat concerned (47%) about the possibility that the state will reduce or eliminate the renewable energy tax credit.
  • Seventy-one percent of homeowners cited the high cost of installation as a compelling reason for not having a PV system.
  • The top two most compelling reasons for PV owners to install a PV system were to lower or eliminate their electricity bill or to take advantage of the tax credit.

The study shows the importance of continuing the solar tax credits, according to the nonprofit clean energy group. 

But the study was quickly criticized by Panos Prevedouros, a UH engineering professor. He sent an email to “elected officials” saying that the cost of installing solar panels has decreased significantly, eliminating the need for the tax incentives: 

The case being made by Blue Planet Foundations for continued state solar subsidies is largely baseless.

Here is my very specific case:

  • In late 2010 I installed a 1500 Watt PV system on the roof of my house for $12,000.
  • In mid-2012 I added 1500 Watt of PV by the same installer for $9,000.

Let’s put these actual costs in perspective:

  • In mid-2010 a 3,000 Watt rooftop PV installation in Honolulu cost about  $24,000.
  • In mid-2013 a 3,000 Watt rooftop PV installation in Honolulu will cost less than $16,000.

The $8,000-plus difference is roughly equal to the Federal and State credit.  Subsidy made sense three years ago. It makes very little sense now.

A study released earlier this year by University of Hawaii economists argued that solar panels are a great investment for Hawaii residents even without the tax credits. 

image

(Photo: ProVision Solar)

— Sophie Cocke

What it means to support Civil Beat.

Supporting Civil Beat means you’re investing in a newsroom that can devote months to investigate corruption. It means we can cover vulnerable, overlooked communities because those stories matter. And, it means we serve you. And only you.

Donate today and help sustain the kind of journalism Hawaiʻi cannot afford to lose.

Donate

About the Author