Hawaii Heat Pump Rebates and Incentives (2026)
Hawaii Energy pays instant rebates of up to $550 per mini-split unit and up to $700 for a heat pump water heater right now, through June 30, 2027 while funding lasts. The state's eHale program would add more, but it is still pending federal approval and is not accepting applications. Federal tax credits have expired, but Hawaii's nation-high electricity rates make heat pumps the highest-ROI energy upgrade in the country. This guide covers all major Hawaii heat pump incentives available in 2026, including Hawaii Energy, eHale, and KIUC programs. Here's the complete breakdown.
Updated and sources last checked September 16, 2026
Rates and program availability may change after this date.
Hawaii
Open
Hawaii Energy instant rebates are the main heat pump incentive open now, on every island except Kauai: up to $550 per mini-split unit, $1,250 for a central AC retrofit, and up to $700 for a heat pump water heater, through June 30, 2027 while funding lasts. Kauai is served by KIUC instead ($500 HPWH, no mini-split rebate). The state’s eHale program (HEEHR and HOMES) is pending DOE approval — HSEO’s page says late 2026 while its own FAQ says it cannot estimate a date — and publishes no rebate amounts. Federal 25C/25D expired Dec 2025.
Sources:
The short version
⚠ eHale (HEEHR) is not open
Hawaii's HEEHR pathway would cover up to 100% of project cost below 80% AMI and up to 50% between 80% and 150% AMI. HSEO has published no rebate amounts and is still awaiting DOE approval to launch.
✓ Hawaii Energy instant rebates (open now)
$450–$550 for mini-split systems, $500–$700 for heat pump water heaters, and $1,250 for central AC retrofits. Offered first-come, first-served on all islands except Kauai; the 2026–27 program year runs through June 30, 2027.
✓ Total potential savings
$450–$550 for a single mini-split by capacity, or about $1,250 for a mini-split plus heat pump water heater, at any income, on every island except Kauai. Income-qualified households will be able to add eHale once it launches.
✗ Federal tax credits expired
Section 25C and Section 25D both ended December 31, 2025. No federal tax credits are available for heat pumps installed in 2026.
⚠ eHale has not launched yet
HSEO is still awaiting DOE approval and is not accepting applications. Hawaii Energy rebates are available right now. Claim Hawaii Energy instant rebates today and watch HSEO for the eHale launch. Whether the two can be combined has not been published.
Federal tax credits have expired
Section 25C (Energy Efficient Home Improvement Credit) and Section 25D (Residential Clean Energy Credit) both expired for equipment placed in service after December 31, 2025. The One Big Beautiful Bill Act accelerated these expirations. Equipment must have been fully installed and operational by that date to qualify — purchasing before the deadline but installing after does not count. There is no acquisition-date safe harbor for 25C or 25D. Read the full federal credit expiration explainer.
While federal tax credits are gone, the IRA's direct rebate programs — HEEHR (renamed from HEAR by DOE in 2026) and HOMES — survived the One Big Beautiful Bill entirely. These appropriated funds remain available until depleted or September 30, 2031, making them the most significant federal incentive channel for heat pumps in 2026. Hawaii's eHale program is the state's implementation of these surviving IRA rebates.
eHale Energy Saver Rebate Program (HEEHR)
Hawaii's implementation of the federal home electrification rebates is the eHale Energy Saver Rebate Program, administered by the Hawaii State Energy Office (HSEO). HSEO now calls the appliance pathway HEEHR (High-Efficiency Electric Home Rebates), the name DOE adopted in Program Notice 26-2. Hawaii received a total allocation of $69 million across the HEEHR and HOMES pathways. Neither is open. HSEO says HEEHR funding has been fully awarded and that it is completing DOE pre-launch requirements; HOMES funding is still only anticipated. Its page says both will be available in late 2026, while its own FAQ says it cannot estimate a launch timeline.
What eHale would pay
HSEO has published no rebate amounts for Hawaii. What it publishes is a percentage of eligible project cost, by income. The figures below are the federal ceilings that apply nationally; Hawaii's own amounts, once announced, may be lower.
| Equipment | Federal maximum (Hawaii amount not yet set) |
|---|---|
| Heat pump (space heating/cooling) | Up to $8,000 |
| Heat pump water heater | Up to $1,750 |
| Electrical panel upgrade | Up to $4,000 |
| Electrical wiring | Up to $2,500 |
| Insulation, air sealing, ventilation | Up to $1,600 |
Income eligibility
HEEHR is exclusively for income-qualified households. Those at or below 80% of Area Median Income (AMI) may receive up to 100% of eligible project cost. Households between 80% and 150% AMI may receive up to 50%. Those above 150% AMI are not eligible. HSEO also recognises categorical eligibility through Medicaid, SNAP, Head Start, Lifeline, FDPIR, the National School Lunch Program, HOPWA, SSI and Public Housing, with WIC qualifying for some households depending on size and county. HSEO links an AMI lookup from its eHale page; check your household against it before assuming a tier.
⚠ HEEHR will not cover fuel switching
Under DOE Program Notice 26-2, effective May 29, 2026, the program no longer covers replacing a fossil-fuel appliance with an electric one. HSEO states this directly: you cannot switch from a propane or natural gas stove to an induction cooktop. Most Hawaii households already cool and heat water with electricity, so most projects are unaffected — but confirm before committing. HSEO also says there will be no retroactive rebates for work done before launch, and that a program-certified contractor must perform the installation.
Hawaii Energy instant rebates
Hawaii Energy is the state's ratepayer-funded efficiency program, operated by Leidos as the Public Benefits Fee Administrator. Rebates operate on a July–June program year, first-come, first-served while funding lasts; the 2026–27 program year runs from July 1, 2026 through June 30, 2027. Hawaii Energy serves ratepayers on Oahu, Maui, Molokai, Lanai, and Hawaii Island. Kauai residents are not eligible — they are served separately by KIUC.
Heat pump water heater rebates
| Size | Instant Rebate |
|---|---|
| 40–54 gallon ENERGY STAR HPWH | $500 |
| 55–82 gallon ENERGY STAR HPWH | $700 |
| HPWH tune-up (every 3 years) | Up to $325 |
These are instant in-store rebates at participating retailers including Home Depot, Lowe's, Ferguson/The Plumbing Source, Inter-Island Solar Supply, and PACE Supply. No application forms are required.
Mini-split and central AC rebates
| BTU Capacity | Min. SEER/SEER2 | Rebate |
|---|---|---|
| 20,000–29,999 BTU | 18 SEER / 17.2 SEER2 | $450 |
| 30,000–44,999 BTU | 18 SEER / 17.2 SEER2 | $500 |
| 45,000–64,999 BTU | 18 SEER / 17.4 SEER2 | $550 |
Each qualifying unit must include a condenser and be installed by a participating Clean Energy Ally contractor. Homes requiring multiple units can claim multiple rebates. Central AC retrofits replacing older systems earn a $1,250 instant rebate.
⚠ Common mistake: missing the contractor requirement
Mini-split and central AC rebates require installation by a Hawaii Energy Clean Energy Ally contractor. Self-installations and installations by non-participating contractors do not qualify. Verify your contractor's status on the Hawaii Energy website before scheduling work.
⚠ Common mistake: the tax credit on Hawaii Energy's own page is gone
Hawaii Energy's cooling rebate page marks mini-splits and central AC retrofits as qualifying for Inflation Reduction Act tax credits. The federal 25C credit ended December 31, 2025 and is not available for 2026 installations. If a contractor quotes that page to you, the rebate is real and the tax credit is not. Hawaii's own 35% state solar tax credit is separate and unaffected.
Kauai Island Utility Cooperative (KIUC) rebates
Kauai operates independently from both Hawaiian Electric and Hawaii Energy. The Kauai Island Utility Cooperative (KIUC) offers its own, more limited set of rebates for Kauai residents.
| Equipment | KIUC Rebate | Notes |
|---|---|---|
| Heat pump water heater | $500 | Must replace an existing electric water heater, a non-functioning HPWH, or a non-functioning solar water heater; new construction excluded |
| Solar water heater | $1,500 | Plus interest-free loan through Gather FCU |
| Mini-split heat pump | — | Not currently offered by KIUC |
KIUC also offers rebates for window air conditioners and ceiling fans — check kiuc.coop for current amounts — and provides free refrigerator and water heater replacement for qualifying low-income seniors (age 60+). Kauai residents will be eligible for the statewide eHale program once it launches. HSEO has not published what it will pay.
How programs stack
Whether Hawaii Energy rebates will combine with eHale has not been published by either administrator. Federal rules cap combined incentives at 100% of project cost, and HSEO says a household may use both the HEEHR and HOMES pathways but not on the same measure. Hawaii's state renewable energy tax credit (RETITC) does not cover standard heat pumps or heat pump water heaters — it applies only to solar and wind systems.
Mini-split heat pump + heat pump water heater
Above 150% AMI — mini-split + HPWH
- Hawaii Energy mini-split rebate: $550
- Hawaii Energy HPWH rebate (55+ gal): $700
- eHale: not eligible at this income
Realistic maximum: ~$1,250
80–150% AMI — mini-split + HPWH (eHale not yet open)
- Hawaii Energy mini-split rebate: $550
- Hawaii Energy HPWH rebate (55+ gal): $700
- Available today: $1,250 from Hawaii Energy
- If eHale opens: up to 50% of eligible project cost. Hawaii amounts are not published, and whether eHale combines with Hawaii Energy is not published either.
Today: $1,250. A 50% eHale tier would cover far more, but no Hawaii figure exists to add to it yet.
Below 80% AMI — mini-split + HPWH (eHale not yet open)
- Hawaii Energy mini-split rebate: $550
- Hawaii Energy HPWH rebate (55+ gal): $700
- Available today: $1,250 from Hawaii Energy
- If eHale opens: up to 100% of eligible project cost for this income tier. Hawaii amounts are not published.
Today: $1,250. If eHale opens at 100% coverage, potentially the full project cost.
What you'll actually pay
For a typical mini-split + HPWH installation costing $8,000–$12,000 total, a homeowner on Oahu, Maui, Molokai, Lanai or Hawaii Island can claim about $1,250 from Hawaii Energy today at any income, leaving $6,750–$10,750 out of pocket. On Kauai, KIUC offers $500 for a heat pump water heater and no mini-split rebate. Income-qualified households would pay substantially less once eHale opens — up to 50% of eligible cost between 80% and 150% AMI, and up to 100% below 80% AMI — but HSEO has not published Hawaii's amounts, is not accepting applications, and has not said whether eHale combines with Hawaii Energy rebates.
Note: Hawaii's state renewable energy tax credit (RETITC) does not cover heat pumps or heat pump water heaters. No additional state tax credit is available. GEM$ on-bill financing can cover remaining out-of-pocket costs for eligible households.
Weatherization and financing programs
GEM$ On-Bill Program
The Green Energy Money $aver (GEM$) program, administered by the Hawaii Green Infrastructure Authority, provides financing for clean energy improvements including heat pump water heaters. The program offers a fixed 5.5% interest rate with terms up to 25 years, no credit check (underwriting based on utility bill payment history), and no upfront costs. Repayment appears on the monthly electric bill. The program targets underserved ratepayers on Hawaiian Electric-served islands and has $18 million in available capital.
Weatherization Assistance Program (WAP)
The WAP, administered by the Office of Community Services under DLIR, serves households at or below 200% of the Federal Poverty Guideline. Approved measures in Hawaii specifically include hybrid heat pump water heaters, solar water heaters, room air conditioners, refrigerator replacement, LEDs, and low-flow fixtures. Four Community Action Agencies deliver services by county: HCAP (Honolulu), Hawaii County Economic Opportunity Council, Maui Economic Opportunity, and Kauai Economic Opportunity.
✓ Best candidates for Hawaii heat pump incentives
Income-qualified homeowners (below 150% AMI) on any island who currently use electric resistance water heating or older window AC units. Households below 80% AMI stand to benefit most once eHale opens, since HSEO's published tier covers up to 100% of eligible project cost. Homeowners with high monthly electric bills ($200+) will see the fastest payback regardless of income level.
Why heat pumps deliver outsized value in Hawaii
Hawaii's energy economics make heat pumps uniquely compelling. At roughly 40–50 cents per kilowatt-hour — about 2.5 times the national average — every kilowatt-hour saved translates to far greater dollar savings than on the mainland. The state imports approximately 93% of its energy, and each island operates its own isolated grid with no mainland interconnection.
ASHRAE design temperatures
| Location | Cooling Design Temp | Heating Design Temp |
|---|---|---|
| Honolulu (Oahu) | 90°F | 59°F |
| Kahului (Maui) | 88°F | 61°F |
| Kona (Hawaii Island) | 87°F | 63°F |
| Lihue (Kauai) | 84°F | 62°F |
Hawaii's cooling-dominant climate (approximately 3,600–4,000 cooling degree days and essentially zero heating degree days at sea level) means heat pumps operate at peak efficiency year-round. The small temperature differential between outdoor conditions and indoor setpoints keeps compressor loads low. Replacing window AC units (SEER 10–12) with mini-split heat pumps (SEER 20–30+) can cut cooling energy use by 50–60%.
Water heating consumes approximately 40% of a typical Hawaii household's electric bill. A standard 50-gallon electric resistance water heater uses roughly 3,500 kWh annually, costing about $1,400–$1,600 per year at Hawaii rates. A heat pump water heater uses 1,000–1,200 kWh, saving $800–$1,000 annually — a payback period of 2–4 years even without rebates.
The energy burden on low-income Hawaii residents is severe. While the statewide average electricity burden is 2.1% of household income, households below the federal poverty level spend 19.5% of income on electricity alone. On Kauai, low-income homeowners face burdens as high as 27.1%. Combining efficient heat pumps with home battery storage can further reduce costs by shifting energy use to off-peak hours or storing solar generation.
How to apply
Claim Hawaii Energy instant rebates now
For heat pump water heaters, purchase an ENERGY STAR model at a participating retailer — the rebate ($500–$700) is applied instantly at checkout. For mini-splits and central AC, hire a Hawaii Energy Clean Energy Ally contractor who will process the rebate.
Check your eHale eligibility
Determine your household income relative to your county's AMI, using the lookup HSEO links from its eHale page. Households below 150% AMI will qualify once the program launches. Categorical eligibility through SNAP, Medicaid, SSI and several other programs also applies; WIC qualifies only some households, by size and county.
Apply for eHale when it opens
Monitor the Hawaii State Energy Office eHale page for launch announcements. The program will be available statewide, including Kauai. Apply through the HSEO portal once applications open.
Explore GEM$ financing for remaining costs
If you have out-of-pocket costs after rebates, apply for GEM$ on-bill financing through the Hawaii Green Infrastructure Authority. No credit check required — eligibility is based on utility bill payment history.
What to watch
eHale program launch date
HSEO is completing DOE pre-launch requirements. HSEO's page says late 2026; its FAQ says it cannot estimate a timeline. HEEHR funding is fully awarded; HOMES funding is only anticipated. Monitor the HSEO eHale page for updates.
IRA funding runway
Hawaii's $69 million allocation is available until depleted or September 30, 2031. However, as a direct appropriation that survived the OBBB, funds could be redirected by future legislation. Applying early once the program opens maximizes certainty.
Hawaii Energy program-year funding
The 2026–27 program year runs through June 30, 2027, first-come, first-served while funding lasts. Several water-heating amounts rose when it opened. Hawaii Energy is also rolling out a new application portal, so application steps may change mid-year.
KIUC program expansion
KIUC currently lacks mini-split rebates, limiting options for Kauai residents. The eHale launch will be the first time Kauai residents can access a statewide heat pump rebate, though HSEO has not published amounts.
Frequently asked questions
What heat pump rebates are available in Hawaii in 2026?
Hawaii Energy offers instant rebates of $450–$550 for qualifying mini-split systems, $500–$700 for heat pump water heaters, and $1,250 for central AC retrofits. The state’s eHale program (HEEHR pathway) is not open and has no published Hawaii rebate amounts; HSEO publishes only a percentage of project cost by income. Federal Section 25C and 25D tax credits expired December 31, 2025.
Can I stack Hawaii Energy rebates with eHale rebates?
Neither administrator has published whether the two combine. Federal rules cap combined incentives at 100% of project cost, and HSEO says a household may use both the HEEHR and HOMES pathways but not for the same measure. eHale is not accepting applications, so the question is not yet live.
Why are heat pumps especially valuable in Hawaii?
Hawaii has the highest electricity rates in the nation at roughly 40–50 cents per kilowatt-hour. A heat pump water heater can save $800–$1,000 per year compared to a standard electric water heater, and efficient mini-splits can cut cooling costs by 50–60% compared to window AC units. Payback periods are shorter in Hawaii than anywhere else in the country.
Who administers Hawaii’s heat pump incentive programs?
Hawaii Energy, operated by Leidos as the state’s Public Benefits Fee Administrator, manages instant rebates for ratepayers on Oahu, Maui, Molokai, Lanai, and Hawaii Island. The Hawaii State Energy Office administers the eHale program, whose appliance pathway it now calls HEEHR. Kauai residents access separate rebates through the Kauai Island Utility Cooperative (KIUC).
Are Kauai residents eligible for the same rebates as other islands?
Kauai residents are not served by Hawaii Energy. KIUC offers its own rebates, including $500 for a heat pump water heater replacing an existing electric water heater or a non-functioning unit, and $1,500 for a solar water heater. KIUC does not currently offer a mini-split heat pump rebate. Kauai residents will be eligible for the statewide eHale program once it launches.
Sources
- Hawaii State Energy Office — eHale Energy Saver Rebate Program
- Hawaii Energy — HVAC Rebates
- Hawaii Energy — Water Heating Rebates
- KIUC — Heat Pump Water Heater Rebate Program
- Hawaii Green Infrastructure Authority — GEM$ On-Bill Program
- Governor Green — HEAR Program Announcement
- Hawaii DLIR — Weatherization Assistance Program
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Hawaii homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Hawaii's unique island utility structure means rebate availability varies by island — Kauai residents should check KIUC programs separately. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with the Hawaii State Energy Office, Hawaii Energy, or your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)