Electricity Rates in Honolulu, HI (2026)
The average residential electricity rate in Honolulu, HI is approximately 40.0 cents/kWh. This is 3% above the Hawaii state average of 39.0 cents/kWh, and 150% above the national average of 16.0 cents/kWh. Higher-than-average electricity costs make solar panels a particularly compelling investment for Honolulu homeowners.
Hawaii State Average
39.0¢
per kWh
Honolulu is 3% higher
National Average
16.0¢
per kWh
Honolulu is 150% higher
Utility Providers Serving Honolulu, HI
The following utility companies operate in Hawaii and may serve the Honolulu area. Rates can vary depending on your specific provider and plan.
| Utility Provider | Avg Rate ($/kWh) | Service Area |
|---|---|---|
| Hawaiian Electric (HECO) | $0.38/kWh | Oahu |
| Maui Electric (MECO) | $0.42/kWh | Maui, Molokai, Lanai |
| Hawaii Electric Light (HELCO) | $0.40/kWh | Big Island |
| Kauai Island Utility Cooperative (KIUC) | $0.37/kWh | Kauai |
Electricity Rate History in Honolulu, HI
The table below shows the trend of residential electricity rates in the Honolulu area over recent years. Understanding rate trends helps you evaluate the long-term value of going solar.
| Year | Avg Rate (cents/kWh) | Year-over-Year Change |
|---|---|---|
| 2020 | 32.0¢ | -- |
| 2021 | 34.0¢ | +6.3% |
| 2022 | 37.0¢ | +8.8% |
| 2023 | 38.0¢ | +2.7% |
| 2024 | 39.0¢ | +2.6% |
| 2025 | 39.0¢ | 0.0% |
Source: U.S. Energy Information Administration (EIA) residential electricity rate data for Hawaii.
How Honolulu Electricity Rates Affect Solar Savings
Your electricity rate is the single most important factor in determining how quickly solar panels pay for themselves. At 40.0 cents/kWh, every kilowatt-hour your solar system generates directly offsets energy you would otherwise purchase from your utility provider.
Because Honolulu's electricity rate is above the national average, homeowners here can expect a faster solar payback period. In Hawaii, the typical payback period for a residential solar system is around 5 years. With higher local rates, Honolulu residents may see even shorter payback timelines, making solar one of the best home investments available.
Hawaii's net metering policy is another advantage for Honolulu homeowners. When your solar system produces more energy than you use, the excess is sent back to the grid and you receive credits on your electric bill. During peak production months, these credits can offset your costs during lower-production periods, effectively reducing your annual electricity bill to near zero.
With approximately 5.5 peak sun hours per day, Honolulu receives excellent solar irradiance. Combined with above-average electricity costs and available state incentives, solar panels are a smart financial decision for homeowners in Honolulu, HI.
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