Solar Financing Options for Big Island Homeowners: Loans, Leases, and PPAs

Solar energy is quickly becoming the smart choice for Big Island families — and it’s easy to see why. By switching to solar, homeowners can cut electricity costs dramatically and save tens of thousands of dollars over the lifetime of their system.

In many cases, solar panels pay for themselves within just 5 to 7 years here in Hawai‘i, leaving you with decades of clean, affordable energy. It’s no wonder more residents are turning to solar as a long-term investment in both their homes and the islands’ future.

But there’s one big question: how do you cover the upfront cost?

If you’re ready to go solar, you don’t always have to pay out of pocket. From loans and leases to power purchase agreements (PPAs), there are flexible solar financing options designed to fit different budgets and goals. Let’s break down what they mean, who they work best for, and how you can make the most of your solar investment. Contact us today to get started!

What are the Different Solar Financing Options for Big Island Homeowners?

Before choosing the right path, it helps to understand the basics of how solar financing works. On the Big Island, most homeowners go solar through one of three methods:

1. Solar Loans – With a loan, you own the system and pay it off over time, much like a car loan or mortgage. You benefit from all tax credits, incentives, and long-term energy savings.

2. Solar Leases – With a lease, you don’t own the panels. Instead, you pay a fixed monthly fee to use them. The installer maintains the system, but you don’t receive tax credits.

3. Power Purchase Agreements (PPAs) – With a PPA, the installer owns and operates the system on your roof, and you agree to buy the power it produces at a set rate — often lower than utility prices.

Here’s how these options stack up for Hawai‘i homeowners:

Solar Loans: Ownership with Flexibility

For many Big Island homeowners, a solar loan strikes the right balance between affordability and long-term benefits. Instead of paying the full system cost upfront, you finance it over time through manageable monthly payments. Once the loan is paid off, the system is fully yours, meaning you’ll enjoy years of virtually free power while reaping the rewards of owning your system outright.

Advantages of Solar Loans

• You own the system, making you eligible for the 30% federal solar tax credit and Hawai‘i incentives.
• Adds long-term value to your home, boosting resale appeal.
• Monthly loan payments often equal or are less than what you’re currently paying HELCO.
• Flexible repayment terms (5–20 years) let you choose what fits your budget.
• Long-term energy savings once the loan is paid off, with no ongoing payments.

Disadvantages of Solar Loans

• You’re responsible for monthly loan payments until the balance is cleared.
• Requires good credit or a strong financial profile for favourable terms.
• Upfront costs may still apply depending on the lender.
• Long-term savings are only realised once the loan is fully repaid.

Solar Leases: Lower Upfront Costs, Less Responsibility

For homeowners on the Big Island who want the benefits of solar without the burden of ownership, a solar lease can be an attractive option. Instead of purchasing the system, you rent it from a solar provider for a fixed monthly fee. The installer owns, installs, and maintains the panels, while you enjoy reduced electricity costs right away. This setup is especially appealing if you’re looking for immediate savings and don’t want to deal with long-term maintenance or upfront expenses.

Advantages of Solar Leases

• Minimal to no upfront cost, making solar accessible without a big investment.
• Monitoring, maintenance and repairs are fully handled by the solar provider.
• Predictable, fixed monthly payments are often lower than your HELCO bill.
• Immediate energy cost savings without waiting for loan payoff.
• Great option if you don’t plan to stay in your home long-term but still want short-term savings.

Disadvantages of Solar Leases

• You don’t own the system, so you cannot claim the 30% federal tax credit or state incentives.
• Long-term savings are lower compared to ownership through loans or cash purchase.
• Lease agreements typically lock you in for 15–25 years, reducing flexibility.
• Transferring the lease to a new homeowner can be tricky if you decide to sell your house.
• Monthly payments continue as long as the lease is active, regardless of how much energy the panels generate.

Power Purchase Agreements (PPAs): Pay for the Power, Not the Panels

For Big Island homeowners who want the benefits of solar without taking on the upfront costs or responsibilities of ownership, a Power Purchase Agreement (PPA) is another option. With a PPA, the solar provider installs, owns, and maintains the panels on your property. Instead of paying a flat monthly lease, you pay only for the electricity those panels generate, typically at a rate lower than what you’d pay HELCO.

Advantages of PPAs

• No upfront cost, making solar accessible right away.
• Pay only for the electricity produced, often at a discounted rate compared to utility power.
• Solar provider takes care of maintenance, monitoring, and repairs.
• Immediate monthly bill relief without needing to finance or purchase.
• Good option for families who want short-term savings without long-term ownership obligations.

Disadvantages of PPAs

• No eligibility for the 30% federal tax credit or state-level incentives.
• Since you don’t own the system, your property doesn’t gain added value from solar.
• Long-term savings are generally smaller than with loans or ownership.
• Contracts often run 15–25 years, limiting flexibility if your circumstances change.
• Selling your home can be complicated, as the PPA must be transferred to the new owner.

Which Option Is Best for Big Island Homeowners?

When it comes to solar financing, there’s no single answer. The best choice depends on your budget, home, and long-term energy goals.

Choose a Loan if you want maximum savings, the 30% federal tax credit, and added home value. Loans suit homeowners planning to stay long-term, since you pay off the system and enjoy decades of low-cost energy.

Choose a Lease if your priority is low upfront cost and hassle-free upkeep. With fixed monthly payments and provider maintenance, you get predictable savings, though you won’t own the system.

Choose a PPA if you want a simple way to cut bills right away. You pay only for the power produced, saving without ownership responsibilities. It’s best for families seeking short-term relief over long-term value.

At BlueSky Energy Hawaii, we walk Big Island homeowners through each option. By reviewing your budget, energy use, and roof type, we design a plan that balances savings and simplicity — so you can go solar with confidence.

Your Next Step Toward Solar Savings

At BlueSky Energy, we’ve helped hundreds of families across the Big Island switch to solar since 2014. Our role isn’t to push one program — it’s to guide you toward the financing option that fits your budget, roof, and long-term goals. From custom system design to paperwork and ongoing support, we make going solar simple and stress-free.

With loans, leases, and PPAs available, every homeowner has a path to clean, affordable energy. The key is choosing the option that balances today’s budget with tomorrow’s savings. Ready to take the next step? Contact BlueSky Energy, and let’s find the best solar solution for your home.

FAQs

What’s the most popular way to finance solar in Hawai‘i?

Most Big Island homeowners choose solar loans because they allow you to own the system, claim the 30% federal tax credit, and maximise long-term savings. But leases and PPAs are also common for families who want little to no upfront cost.

Can I still get solar if I don’t have cash up front?

Yes. Both leases and PPAs require little to no upfront payment. Even with loans, many lenders offer zero-down options, so you can start saving right away without a large initial expense.

Do leases and PPAs qualify for tax credits?

No. Only homeowners who purchase their system outright (with cash or a loan) can claim the 30% federal tax credit. With leases and PPAs, the installer or provider receives those benefits instead.

Which option saves the most money in the long run?

Owning your solar system — either by paying upfront or through a loan — usually delivers the biggest lifetime savings. Leases and PPAs provide predictable monthly savings but don’t add as much long-term value to your home.