Claire WhitakerBy Claire Whitaker

Updated November 2026

Hawaii ended traditional net metering for most new residential solar customers, replacing it with a self-supply option and lower export credits. Customers who already had systems under the old rules generally kept their terms, but new installations now depend on how much power they use themselves rather than how much they send back to the grid. The change makes battery storage and right-sized systems far more important for home solar owners.

Why Hawaii Ended Net Metering

Hawaii had some of the highest electricity rates in the country and some of the highest rooftop solar adoption. Utility regulators and grid operators became concerned that heavy midday exports were pushing the grid harder than the system was built to handle, and that non-solar customers were subsidizing solar owners through credits worth close to the full retail rate. The state responded by moving new customers toward a model where exported energy is valued at a lower rate that reflects what the utility actually pays for power at that time of day.

The practical effect is that the grid no longer acts as a free battery. Under the old system, a homeowner could export surplus solar at noon and draw power back at night, with the utility effectively storing the energy at full retail value. Under the new structure, that arrangement is much less valuable, so the math of system design changes.

Factors That Affect Your Outcome

Whether the change helps or hurts you depends on several variables. Each one can shift the payback period of a system significantly.

  • When you use power. Households that are home during the day and run appliances at midday use more of their own solar output, which is worth the most under self-supply rules.
  • System size relative to load. An oversized array that exports heavily will earn less per kilowatt-hour than one sized to cover daytime and evening use.
  • Battery storage. A battery lets you shift midday production into the evening peak, when your own consumption and grid import costs are highest.
  • Your existing contract. If your interconnection application was approved before the cutoff, your original terms generally still apply. Check the date and the paperwork your installer filed.
  • Island and grid conditions. Utility rules on inverter settings, export limits and grid-support features can change how much a system can actually deliver.

What to Do About It

If you are planning a new system in Hawaii, the goal is to maximize self-consumption and limit exports. That usually means a smaller array than you would have installed under net metering, combined with storage if your budget allows. A detailed load analysis from your installer, using at least 12 months of utility bills, is the most reliable starting point.

If you already have a system, review your interconnection agreement and your monthly bill. Confirm which export rate you are on and whether any upgrades would change it. Some owners find that adjusting when they run large appliances, such as water heaters, pool pumps or EV chargers, to midday produces a noticeable improvement.

For general background on how credits and billing have worked elsewhere, see What Is the Benefit of Net Metering for Home Solar Owners?. The contrast with other programs is useful when you are comparing options. Our guide to Net Metering Solar Program vs Self-Consumption: Which Is Better for Homeowners? explains the same trade-off in more detail.

Practical steps

  1. Pull your last 12 months of utility bills and note your daily usage pattern.
  2. Confirm the date your system was approved, and which tariff or export rate applies to it.
  3. Ask any installer to model output under the current self-supply rules, not the old net metering rules.
  4. Size the array to match daytime load plus a modest margin, rather than maximum roof capacity.
  5. Compare the cost of adding storage against the value of shifting midday production to evening use.
  6. Check with the utility before adding panels or changing inverter settings, since a change can affect your interconnection terms.

Does the change apply to systems already installed?

In most cases, customers whose systems were approved before the cutoff keep their original terms. Confirm this with your utility and your interconnection paperwork, because specific rules can vary by application date.

Can I still get credits for exported power?

Yes, but exports are valued at a lower rate than before. The credit is tied to the time and conditions of export, so exports at midday typically earn less than the retail rate you pay for power at night.

Is battery storage required?

No, storage is not legally required for most systems. However, it often becomes the difference between a system that pays off reasonably and one that does not, because it lets you use more of your own solar output.

Should I still go solar in Hawaii?

That depends on your usage pattern, roof conditions and budget. Many homeowners still benefit, especially when the system is sized for self-consumption. A licensed installer and, where appropriate, a financial advisor can help you run realistic numbers before you commit.

How do I check whether my system is affected?

Look at your interconnection approval date and your monthly bill’s export line items. If you are unsure, contact your utility directly and ask which program your account is enrolled in.

Ready to choose one?

Claire Whitaker

About Claire Whitaker

Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.