Hawaii headline: Hawaii is different. Homes here need no heating, so the heat pump that earns a rebate is the water heater. Hawaii Energy pays up to $700 for one (through June 30, 2026), and the state HEAR rebate adds up to $1,750 for income-qualified homes. With the highest electric rates in the country, the payback is fast. The federal 25C credit expired after December 31, 2025.
Why Hawaii is not like other states
Every other state guide we write is about heating and cooling your home. Hawaii does not need home heating, so the big space-heating rebates do not apply here. What Hawaii homes do need is hot water, and that is where the heat pump, and the rebate, come in.
A heat pump water heater uses about 60 to 70 percent less electricity than an old electric resistance tank. With Hawaii’s electric rates near 33 cents per kilowatt hour, the highest in the nation, that saving is real money every month.1 So in Hawaii, a heat pump water heater is one of the best upgrades a homeowner can make.
This is the Hawaii companion to our 2026 heat pump rebate guide.
What is live now: Hawaii Energy
Hawaii Energy is the ratepayer-funded efficiency program, and it pays the main live rebate.1
| Item | Detail |
|---|---|
| Heat pump water heater rebate | up to $700 |
| Available through | June 30, 2026 |
| Islands covered | Hawaii Island, Lāna’i, Maui, Moloka’i, O’ahu |
| Not covered | Kaua’i (served by KIUC, its own programs) |
Hawaii Energy also boosted its solar water heater rebate after the federal tax credit expired, so on sunny islands a solar water heater is a strong alternative or complement.3
Kaua’i note: Hawaii Energy does not serve Kaua’i. If you live on Kaua’i, your electricity comes from the Kaua’i Island Utility Cooperative (KIUC), which runs its own rebate programs, so check with KIUC directly.
The state rebate: rolling out
The Hawaiʻi State Energy Office runs the federal Home Energy Rebate programs, including the eHale Energy Saver rebates. The HEAR pathway offers up to $1,750 for a heat pump water heater for income-qualified households, with funding expected in 2026.2
Stacking: once the state HEAR rebate is funded, an income-qualified household could combine it with the Hawaii Energy rebate. On a $2,500 to $3,500 heat pump water heater install, the rebates can cover a large share of the cost. Check energy.hawaii.gov for the current status.
The economics: why this pays off fast in Hawaii
Nowhere else does a water heater upgrade pay back this quickly, because nowhere else pays this much for electricity.
- Hawaii electric rates: about 33 cents per kilowatt hour, roughly triple the mainland average.
- A heat pump water heater cuts water heating electricity use by 60 to 70 percent.
- For a household spending $60 a month on water heating, that is roughly $40 a month saved, or close to $500 a year.
For a senior on a fixed income, cutting the electric bill by that much matters more than a one-time rebate, though the rebates make the upfront cost easier.
The senior and income path
The federal HEAR rebate (up to $1,750 for a heat pump water heater) is reserved for income-qualified households at or below 150% of Area Median Income.2 Hawaii also runs a Weatherization Assistance Program for lower-income households.
Why it helps a Hawaii senior most: high electric bills hit fixed incomes hardest, and a heat pump water heater is the single biggest dent you can make in that bill. Combine the income-qualified HEAR rebate with the Hawaii Energy rebate, and the upfront cost drops sharply while the monthly savings continue for the life of the unit.
Income limits for the state rebate
HEAR uses Area Median Income (AMI) at the county level.6 Households below 80% AMI get the highest tier; 80 to 150% AMI qualifies for a partial rebate.
Approximate 80% AMI thresholds for a family of 4:
| County / island | 80% AMI (family of 4) |
|---|---|
| Honolulu County (O’ahu) | ~$104,000 |
| Maui County | ~$92,000 |
| Hawai’i County (Big Island) | ~$80,000 |
| Kaua’i County | ~$92,000 |
Hawaii’s AMI figures run high because incomes and costs are both high. Even so, for a senior household on Social Security only, eligibility is usually clean.
Federal layer (2026)
The federal 25C Energy Efficient Home Improvement Credit, which paid toward heat pump water heaters in prior years, and the solar water heater portion of 25D, lapsed for installs after December 31, 2025.4 Hawaii Energy boosted its solar water heater rebate specifically to help offset that loss.3
What remains in 2026:
- 25D Residential Clean Energy Credit for solar panels: 30% of cost through 2034, which pairs well with Hawaii’s sun.5
- Your Hawaii savings now come from Hawaii Energy, the coming state HEAR rebate, and lower bills.
See IRA 25C expired 2026 for the full federal picture.
Senior scenarios
Scenario A: O’ahu retired couple, replacing an old electric water heater
- Hawaii Energy heat pump water heater rebate: up to $700
- Monthly savings: roughly $40 on the electric bill
- Live today: up to $700 off, plus about $500 a year saved. Add the state HEAR rebate once funded if income-qualified.
Scenario B: Maui household, income-qualified
- Hawaii Energy rebate: up to $700
- State HEAR (once funded, income-qualified): up to $1,750
- Potential combined: up to $2,450, which can cover most of a heat pump water heater install.
Scenario C: Kaua’i senior
- Hawaii Energy: not available on Kaua’i
- KIUC programs: check directly
- Live today: check KIUC, and watch for the state HEAR rebate, which is statewide.
Verify your contractor first
A rebate is only as good as the contractor who installs the equipment. Hawaii licenses contractors through the Contractors License Board, and the Hawaii Energy program requires a participating contractor.
Red flags to reject, and one is specific to Hawaii:
- A quote for a home-heating heat pump. You do not need home heating in Hawaii; the rebate is for a water heater.
- A guaranteed state HEAR rebate. The state pathway is not fully funded, so nobody can promise it.
- Door-to-door pitches and no Hawaii license number on the quote.
Verify a license in about a minute with our Hawaii contractor license lookup guide.
- The rebate upgrade in Hawaii is a heat pump water heater, not home heating
- Claim the Hawaii Energy rebate (up to $700, through June 30, 2026)
- Kaua’i residents: check KIUC instead
- If income-qualified, watch for the state HEAR rebate (up to $1,750)
- Expect about $500 a year in bill savings given Hawaii’s high rates
What’s next
- Federal 2026 landscape: Heat pump rebates 2026
- Post-25C federal picture: IRA 25C expired 2026
- Cold-climate equipment: Cold-climate heat pumps
- Total cost math including stacks: Heat pump cost calculator
- Hawaii contractor check: Hawaii contractor license lookup
- Family in other states: California, Washington
Citations
- Water Heating Rebates (Heat Pump Water Heater). Hawaii Energy, retrieved August 2, 2026. hawaiienergy.com water heating.
- eHale Energy Saver Rebate Program and Home Energy Rebates. Hawaiʻi State Energy Office, retrieved August 2, 2026. energy.hawaii.gov ehale rebates.
- Solar Water Heater Rebate Boost (Offsetting Federal Credit Loss). Hawaii Energy, retrieved August 2, 2026. hawaiienergy.com solar water heater boost.
- Energy Efficient Home Improvement Credit (25C). U.S. Internal Revenue Service. irs.gov 25C.
- Residential Clean Energy Credit (25D). U.S. Internal Revenue Service. irs.gov 25D.
- Income Limits Documentation System. U.S. Department of Housing and Urban Development, April 2026. huduser.gov income limits.
- Technology Transitions: Restrictions on Use of Certain HFCs. U.S. Environmental Protection Agency. epa.gov technology transitions.