With energy bills rising, many Hawaii residents are turning to solar water heaters to help reduce their hot water costs. However, one challenge that residents face is that a solar water system costs an average of $6,600 to install. Even with state and federal tax credits of approximately $3,800 and an $750 instant rebate, Hawaii residents still feel that the costs are too prohibitive in many situations. Currently, approximately 85,000 homes in Hawaii, or about 25% of all residences, have solar water heaters.
The Hawaiian Electric Company (HECO) is seeking approval with the Public Utilities Commission to pay for the upfront cost to install solar water heating systems for qualified residents. In return, the customer will pay back the Hawaiian Electric Company over a 12 year period through a surcharge on their electric bill. HECO has stated that even with this surcharge, the customers' bills will be lower then if they did not have a solar water heating system installed.
Governor Neil Abercrombie stated that HECO's proposal would "bring much-needed relief to consumers who have been faced with continued rising electricity costs. By increasing our use of clean energy, like the sun, we are lessening our dependence on fossil fuels and moving the state forward in our energy goals. This program will result in installation jobs now and immediate savings for the consumer."
