The Birth of Solar Energy in Hawaii

In 2001, Hawaii became a trailblazer in renewable energy by passing the Net Energy Metering (NEM) law. This innovative program allowed homeowners with rooftop solar panels to feed excess electricity back into the grid, earning credit on their energy bills.

It was a simple idea that sparked a solar boom. Thousands of families rushed to install solar panels, eager to save money and protect the environment. By making clean energy affordable and accessible, NEM helped Hawaii dramatically reduce its dependence on imported fossil fuels.

Solar panels became as iconic as palm trees and surfboards — a real symbol of the islands’ commitment to a greener future.

Why NEM Ended — And What Happened Next

However, not all good things last forever. In October 2015, the Public Utilities Commission (PUC) decided to sunset the NEM program. Their reasoning? While NEM was a massive success, it mainly benefited early adopters. To build a system that was fair for everyone, the state needed a new approach.

Here’s what happened next:

New Customer Options: Future solar users would join new programs with different compensation rates.
Goal of Fairness: The PUC wanted to ensure that non-solar customers weren’t left shouldering the costs of grid maintenance.
Unexpected Result: Rooftop solar installations plummeted almost overnight.

Without the generous financial benefits of NEM, many families found it hard to justify the upfront cost of going solar.

A New Push for Solar: Setting Big Goals

Recognizing the slowdown, Hawaiian Electric Company (HECO) stepped up in 2022. They announced a bold target: 50,000 new rooftop solar systems over the next nine years.

The urgency became even clearer when Governor Josh Green took office. In January 2025, he signed an executive order that echoed HECO’s target — but demanded a quicker timeline: add 50,000 rooftop solar systems by 2030.

This executive order set a powerful tone. Hawaii is once again serious about transforming its energy future.

How the Legislature Is Getting Involved

Solar energy isn’t just about panels and batteries — it’s about policies that make adoption possible.

That’s why the Hawaii Legislature is working on new bills to support rooftop solar. Their main focus? Fair compensation for solar customers.

What is fair compensation? It means setting electricity buyback rates high enough to encourage homeowners to install solar panels.
Why does it matter? Without attractive rates, many residents might hesitate to invest in solar systems, slowing down Hawaii’s clean energy goals.

If passed, these new laws could reignite the rooftop solar market and bring clean energy back within reach for thousands of families.

Why This Matters for Hawaii’s Energy Future

For Hawaii, investing in rooftop solar isn’t just smart — it’s essential. Here’s why:

Reason	Impact
Energy Independence	Reduces reliance on expensive imported oil.
Lower Energy Bills	Saves families hundreds each year.
Climate Action	Cuts carbon emissions and fights global warming.
Resilience	Protects communities from power outages.
Economic Growth	Creates green jobs across the islands.

As the cost of solar technology drops and battery storage improves, Hawaii has a golden opportunity to lead the world in sustainable living.

But it all hinges on smart policies and bold action — right now.

3 Big Takeaways for Hawaii’s Energy Landscape

Net Metering fueled Hawaii’s early solar success but needed a reboot.
The state has ambitious new targets — 50,000 systems by 2030.
Legislation offering fair compensation could make or break the future of rooftop solar.

Why Rooftop Solar in Hawaii Needs a Jumpstart: Understanding the State’s Energy Landscape