HONOLULU (KHON2) — Solar companies and customers across the state are racing against time. Thousands are trying to install rooftop solar before December 31st, when the federal tax credit is set to expire. But the process is leaving many stuck.
The rush is on.
Homeowners in Hawaii are scrambling to get rooftop solar panels installed before the end of the year.
The federal Residential Clean Energy Tax Credit – that covers 30 percent of installation costs – was originally supposed to last through 2032, but the passage of “The One Big, Beautiful Bill” moved up the deadline, creating a surge in demand.
Hawaiian Electric says in July, it received 1,151 applications for new rooftop solar and battery systems- the highest in over a year and a half, and nearly double the month before.
In a statement, HECO said, “We are committed to processing applications as quickly as possible to help customers who want to install and energize their systems by the end of the year.”
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The company said it can shift staff to handle the surge and keep projects moving, but those in the industry said that’s not the only hurdle.
“It’s almost a plea out to the city and county employees to help support this new system transition, because there is a plan in place to expedite these permits through. And I think it’s going to take a village to do it,” said Chris Debone, Founder of Hawaii Energy Connection, also known as Kumu Kit Solar. Debone said he and other installers are stalled, waiting for DPP to sign off.
The city Department of Planning and Permitting acknowledges the backlog, but says the new permitting software continues to process solar applications as “instant” or “quick” permits, but flags permit applications in flood zones, which takes 2-3 days longer for approval.
The DPP said it has 397 permit applications pending in the system. Since Aug. 1, 2025, the department has issued 617 solar permits.
In a statement, DPP Director Dawn Takeuchi Apuna said the department was “empathetic to the solar industry’s challenges with the looming federal tax credit expiration.” However, “DPP is not solely a solar permit processing department. We serve builders, contractors, homeowners and developers of all types with just as important needs and projects, and must balance the needs of all to provide the best service across the public. DPP has gone above and beyond the call to accommodate the solar industry over the years and has provided immediate assistance since the launch of HNL Build. We will continue to work with the solar industry.”
But with the clock ticking, installers are urging the city to move faster, so that families don’t lose out on thousands of dollars in savings and Hawaii doesn’t lose momentum in its push towards clean energy. Debone says his company alone has 250 applications waiting for DPP approval.
“What keeps me up at night right now is the customers that we are working with and trying to keep as calm as possible. Yet in the back of my mind, are we going to have enough time to solve this? And then what? This has to be done now. October is too late, and we’re having to take customers that were questionable off the schedule and put on ones. Is that fair? But that’s what we’re having to do. And where does that end?” said Debone. “So we’re just worried that it may not be fixed fast enough to get in the volume of renewable projects necessary by the end of the year.”