HONOLULU (HawaiiNewsNow) – A surprise change to Hawaii’s solar energy tax credit is prompting calls from lawmakers and industry leaders for a special legislative session, warning the move could affect hundreds of renewable energy projects already underway.

At King’s Chapel East Oahu, leaders say their planned solar installation was meant to reduce rising electricity costs.

Instead, the project is now uncertain after lawmakers approved a broader tax bill that alters how the solar credit would be applied.

Higher costs could delay church activities

Facility manager Rendell Bourg said the nonprofit church has spent two years preparing for solar installation, including roof assessments and project planning.

The church currently pays more than $8,000 a month for electricity and expected solar energy to cut that cost roughly in half.

“We’re a nonprofit, so it’s very important for us to cut our costs down as much as we can,” Bourg said.

Higher electricity expenses, Bourg added, could force the church to delay building maintenance and other programs.

State Rep. Nicole Lowen, chair of the House Energy and Environmental Protection Committee, said the main concern is that the change could apply retroactively to projects already completed or financed earlier this year.

“That means families or organizations that installed solar systems and planned their finances around the tax credit may no longer receive the amount they expected,” Lowen said.

Lawmakers call for special session to fix retroactive language

The solar credit revision was included in a comprehensive tax measure passed by the Legislature last week.

Lowen and solar industry leaders are urging lawmakers to return to a special session to revise the language and create protections, often referred to as “safe harbor” provisions, for projects already in progress.

“It’s hard to finance projects when you don’t know what amount of tax credit you might receive or whether you’ll receive one at all,” Lowen said.

According to the Hawaii Solar Energy Association, at least 265 nonprofit, commercial, and government solar projects statewide could be affected if the measure becomes law.

More than $400 million in projects at risk

Those projects represent more than $400 million in investment and support nearly 2,000 local jobs.

Gov. Josh Green has said he is working on a solution.

While the governor could veto the bill, the solar tax credit changes are tied to broader budget measures that may require legislative action to resolve.

For now, developers, nonprofits, and homeowners planning solar installations remain in limbo as state leaders consider next steps.