Hawaii Heat Pump Rebates
Hawaii heat pump rebates currently cover as much as $700 for a water heater, plus $550 for each mini-split, through Hawaii Energy. Kauai residents get $500 for water heaters, and $1,250 is available to homeowners who replace central air conditioning.
Find the Hawaii rebates for your ZIP code
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- Largest standard rebate now available
- $550 Hawaii Energy Cooling, serving Hawaiian Electric Co Inc customers along with Hawaii Electric Light Co Inc customers and more.
- HEAR appliance rebates
- Approved, not open yet Run by HSEO. Official page
- HOMES whole-home rebates
- Has not opened yet. Paid on the energy saved by a whole-home upgrade. Official page
- The 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Hawaii heat pump rebate programs
Kauai sets its own rules, unlike the other islands, so check your island and electric utility against every program row.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Hawaii Energy Cooling (HVAC) Rebates – Mini-Split VRF Air Conditioner | Served by Hawaii Electric Light Co Inc, Hawaiian Electric Co Inc, and others | None | Up to $550 per unit, instant rebate | None | Open | Official page |
| Rebates for heat pump water heaters from Hawaii Energy | Served by Hawaii Electric Light Co Inc, Hawaiian Electric Co Inc, and others | None | None | $700 instant in-store rebate | Open | Official page |
| KIUC Heat Pump Water Heater Rebate | Served by Kauai Island Utility Cooperative | None | None | $500 rebate | Open | Official page |
Claiming Hawaii Heat Pump Rebates Step by Step
While funds last, electric ratepayers in Hawaii Island, Lanai, Maui, Molokai, and Oahu get instant discounts through June 30, 2027. A mini-split pairs an outdoor condenser with a ductless room unit to cool your home. Follow three steps to claim $1,250 for replacing central air conditioning or up to $550 per mini-split:
- Before installation begins, hire a contractor who is a participating Clean Energy Ally in the Hawaii Energy cooling program.
- Ask the contractor to confirm the unit has a condenser and meets the required SEER rating for cooling efficiency.
- Once your instant rebate is deducted and the application filed by the contractor, you pay the lower invoice price.
To claim rebates for water heaters, purchase an ENERGY STAR tank from Home Depot, Lowe's, Ferguson, PACE Supply, or Inter-Island Solar Supply. No forms are needed: the store takes $500 off tanks of 40 to 54 gallons and $700 off tanks of 55 to 82 gallons.
Rebates and Grants for Hawaii Households with Lower Incomes
Funding is approved for the eHale Energy Saver program, which the Hawaii State Energy Office is getting ready; it has not opened. Under its appliance pathway, up to $8,000 will go toward a heat pump, and $1,750 toward a heat pump water heater. Your county's midpoint household income is called Area Median Income. A household on Medicaid or SNAP, or below 80% of Area Median Income, may receive 100% of eligible project costs. For households from 80% to 150% of Area Median Income, up to 50% of costs can be covered. A second whole-home retrofit pathway, open to all income levels, is also planned; coverage is higher below 80% of Area Median Income. Work done ahead of the launch will not qualify, and the state gives an early 2027 launch window. Until then, extra water heater discounts for households that are low-income or remote come from Hawaii Energy.
Kauai cooperative rules and free weatherization
Families at or below 200% of the Federal Poverty Guideline can receive free upgrades through the Weatherization Assistance Program. This program is run across the islands by the Office of Community Services, working with four local Community Action Agencies. Residents of Kauai are served by a utility cooperative, and Hawaii Energy rebates are not available to them. The Kauai Island Utility Cooperative instead pays $500 when an ENERGY STAR heat pump water heater is installed. Your new tank must take the place of an electric water heater that still works, or a solar or heat pump unit that is broken. New construction is not eligible, and after purchase you submit the application form from the cooperative while funds last. Working with Kauai County, the cooperative also gives low-income seniors aged 60 and older free replacements for broken electric water heaters. Mini-split and central air conditioning heat pumps get no utility rebate on Kauai.
Island Climate, Laws on Solar, and Tax Credit Rules
Power in Hawaii costs almost three times the United States average, since petroleum supplied 64% of the state's electricity in 2025. Data from the United States Energy Information Administration show about 44% of Hawaii homes lack any heating system. Homeowners choose heat pumps mainly to cool, and summer cooling can take up to half the electricity a household uses. Compared with standard tanks, heat pump water heaters run three to four times more efficiently and lower electric bills by up to 40%. Most new single-family homes have needed a solar water heater under building codes since 2010. Solar and wind systems are covered up to 35% by the Hawaii renewable energy tax credit, but heat pumps are not. Nationally, the 25C federal tax credit ended for equipment installed after 31 December 2025.
Common Questions About Hawaii Heat Pump Rebates
Are any tax credits for heat pumps available in 2026?
A heat pump installed in 2026 is not covered by any federal or state tax credit. The federal home energy credit was cut off early by Public Law 119-21, which Congress passed on July 4, 2025. Equipment put in use after December 31, 2025, does not qualify, and Internal Revenue Service Fact Sheet FS-2025-05 confirms this.
In Hawaii, what residential utility rebates are there beyond these?
An air conditioner tune-up earns $75 from Hawaii Energy, and a heat pump water heater tune-up pays $250 to $325. For solar water heaters, the amount is up to $2,750 instead. Properties can also ask for a free Energy Smart 4 Homes consultation. Qualifying clothes washers, dryers, refrigerators, and freezers earn $100 rebates from the utility cooperative on Kauai.
Are heat pump rebates in Hawaii ending?
No. Rebates from utilities and the state continue even with no federal tax credits. While program funds last, current Hawaii Energy rebates stay open through June 30, 2027. Also, its full federal grant award remains with the Hawaii State Energy Office, which is awaiting Department of Energy approval to launch.
Are financing options or state tax rebates available for heat pumps?
Heat pumps get no tax rebate in Hawaii, since the state credit covers just solar thermal, solar electric, and wind systems. Homeowners and renters have another option: the Hawaii Green Infrastructure Authority GEM$ On-Bill Program, which finances efficient cooling or water heating.
Get Hawaii installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.
