Hawaii climate goals at risk after renewable tax credit cuts, advocates warn

Hawaii's ambitious climate targets face new uncertainty after state lawmakers capped and phased out a key renewable energy tax credit. Governor Josh Green reinstated the credit for 2026 projects via executive order, but advocates say the underlying law still threatens progress toward 50,000 new rooftop solar systems on Oahu by 2030 and 100% renewable power on neighbor islands by 2035. The Renewable Energy Technologies Income Tax Credit, which has distributed over $684 million since 2015, was capped at $40 million annually and set to phase out by 2031 under Act 24. Industry leaders warn that without sustained incentives, lower-income households will struggle to finance solar installations, slowing the state's clean energy momentum. The Sierra Club of Hawaii called the situation a 'dark cloud' over the local solar industry. Hawaii was the first U.S. state to mandate 100% renewable energy by 2045 and later added a net-zero emissions goal. The current policy gap highlights the tension between short-term budget balancing and long-term climate commitments, a challenge many states will face as federal clean energy incentives also shrink.