New rules relating to Hawaii’s solar industry are not going over well with environmental groups.
In the past you could claim a tax credit of up to $5,000 per system, if you install multiple systems you could get double the state credit.
Friday, Clean and Green Alternatives was busy installing solar panels on an Aiea home. They average about 4 jobs a week. But come January, under new temporary rules, the amount of tax credits a homeowner can claim for the installation of solar photovoltaic systems will change.
"They favor micro-inverters instead of string inverters is they way the original tax law was written and you don’t have multiple systems in your building you only have one system so it should be judged or based on the components that you use, it should be based on total system size," says phil DiJoseph, Clean and Green Alternatives
Governor Neil Abercrombie announced that under the Department of Taxation, solar systems will now need to meet the applicable total output capacity. A change aimed at leveling the playing field within the renewable energy industry.
"So that the tax credits that are going to be available to everybody and not just to the people who can conjure up a way to get more credits than they are entitled to," says Abercrombie.
"I agree it’s not fair, it isn’t fair and it hasn’t been fair," says DiJoseph.
But others are slamming the new rules.
"These new rules are going to make it really expensive for local families and local businesses to put solar panels on their roofs so it’s a real step backward for hawaii to achieve its clean energy goals," says David Henkin, Earthjustice.
Earthjustice argues that the change to the solar tax credits will also threatens jobs.
"We’ve been hearing loud and clear in this election season that we want local jobs for local people, so you will be throwing out of work a lot of people who are getting good work," says Henkin.
"Oh it will hurt the market for sure and the bigger guys they are really going to suffer the most," says DiJoseph.
A debate that will be put before lawmakers this upcoming Legislative session.
"Once everyone feels they are being distributed fairly, then we can go to Legislature and they can make their conclusion as to whether they believe that to be true also and take the necessary legislative steps," says Abercrombie.
It’s not clear how much the tax credit changes will save the state but companies argue it could cost customers more for solar.
See the original article at: KHON2 Local News
