Moving to a “Greener” Hawaii

Hawaii has taken a leadership role in making our island State sustainable and energy efficient. With increasing energy costs, electric bills are becoming more expensive; fortunately there are solutions to reducing your energy costs.

Property Owners have three basic options:
   1. Traditional Energy – choosing to “Do Nothing”;
   2. Solar Service Provider* – choosing to “lease” a renewable energy system; or
   3. Solar Owner w/ Financing Program – choosing to “own” your solar system(s)

Owning via Financing vs. Leasing via a Solar Service Provider

In the next 20 years, it is estimated that an average home ** in Hawaii will spend about $60,000 in energy costs. Deciding to go green can help property owners save up to 70% or $40,000. With a variety of options to save, property owners should consider the long-term benefits when making a decision between leasing your equipment through a Solar Service Provider OR owning your energy efficiency and renewable energy systems through financing.

For some, leasing may be more desirable considering the short-term benefits because it immediately lowers your monthly electric bill with minimal or no out of pocket costs. However, for those seeking a longer-term benefit, financing the purchase and installation of energy efficiency and renewable energy systems will provide maximum savings. The additional benefit of owning is the property owner’s ability to take advantage of up to 65% of combined Federal and State tax credits. Typical borrowers, who apply their tax savings towards a principal reduction to their loan balance, will pay off their loan within five years, enabling them to enjoy a significantly lower monthly cost by the 6th year and realize substantial savings in total energy costs over 20 years.

SEE comparison charts below.

*    Solar Service Provider leases only renewable energy equipment or a photovoltaic system and does not lease lighting retrofits, ENERGY STAR appliances or solar water heating systems.
**  An average home consists of a family of four without energy efficiency/renewable energy equipment (E.g. lighting retrofits, ENERGY STAR appliances, solar water heater, and photovoltaic equipment).

Total Estimated Energy Cost Over 20 Years

The typical utility bill for the average family of four is $212.25/month and is forecasted by HECO to increase at a rate of 1.5% per year.

How leasing from a Solar Service Provider Works

The Solar Service Provider allows customers to lease renewable energy equipment by charging a cost for the service of having the equipment installed onto property owners’ rooftops. Based on an “average home,” the Solar Service Provider typically charges a fixed rate of $110/month in addition to the reduced energy bill with an estimated $60/month. In total, the cost of leasing is $170/month or $2040/year and $40,800 over 20 years.

How owning through a Financing Program Works

Owning your system through a financing program can help you save around $40,000 over “doing nothing” and about $20,000 over leasing from a Solar Service Provider over the course of 20 years. The typical GreenSun loan payment for a $25,000 loan principal, 10-year payback period, and a 6% interest rate is $277.55/month. The reduced energy bill with financing is estimated to be $35/month. Applying up to 65% combined Federal and State tax credits to your loan balance can cut your payback period in half.

Estimated Energy Cost Per Year

The GreenSun Hawaii financing program, along with the Federal and State tax credits*** can help you pay off your loan by the fifth year. By the 6th year, you will enjoy a substantial decrease in your energy costs to about $35 per month or $420 per year.

*** Federal and state tax credits may cover up to 65% of the energy efficient and renewable energy equipment’s cost. With a $25,000 principal loan, tax credits may cover up to $16,250