Article Summary
- Hawaii’s Green Energy Money Saver (GEMS) program offers on-bill financing for solar and clean energy upgrades with no down payment required—making solar accessible to Hilo households that can’t qualify for traditional loans or don’t benefit from tax credits.
- GEMS is uniquely available to renters (with landlord consent) and low-income families, two groups that standard solar financing typically leaves out entirely.
- Loan repayments are added directly to the borrower’s Hawaiian Electric bill, and because solar savings often offset the monthly payment, many participants see net-zero or positive cash flow from day one.
- The program is administered by the Hawaii Green Infrastructure Authority (HGIA) and covers solar photovoltaic systems, solar water heating, and qualifying energy efficiency upgrades.
- Low-income households in East Hawaii may qualify for subsidized interest rates that make the program even more affordable than standard GEMS terms.
- A licensed solar contractor in Hilo, HI who is experienced with GEMS applications can significantly reduce the friction of enrollment and system approval.
- While GEMS provides the initial funding path, homeowners who can utilize tax incentives should look into stacking Hawaii’s 35% state credit with the 30% federal ITC to drastically reduce the long-term cost of their Hilo solar installation.
For a long time, the conversation about going solar in Hawaii had an invisible asterisk attached to it. The savings were real. The incentives were real. But the people most burdened by high electricity costs—renters living in older Hilo homes, families stretched thin on fixed incomes, households without strong enough credit to qualify for a solar loan—were largely left out of the discussion.
That gap is exactly what Hawaii’s Green Energy Money Saver program, known as GEMS, was built to close.
GEMS is an on-bill financing program administered by the Hawaii Green Infrastructure Authority, and it does something that most solar financing options don’t: it extends access to solar energy systems to Hilo households that standard loans and lease programs routinely turn away. Renters. Low-income families. Homeowners with limited credit history. People who pay some of the highest electricity rates in the country and have the most to gain from solar—but have always been told that solar simply isn’t available to them.
This article explains how GEMS works, who qualifies in East Hawaii, what the application process looks like, what kinds of systems GEMS can finance, and how to find a solar contractor in Hilo, HI who knows how to work within the program’s requirements.
What Is GEMS and Who Runs It?
GEMS stands for Green Energy Money Saver. It is Hawaii’s state-backed on-bill clean energy financing program, administered by the Hawaii Green Infrastructure Authority (HGIA)—a public instrumentality of the State of Hawaii created specifically to expand access to clean energy for underserved communities.
The program was designed with a clear purpose: to make sure that the benefits of Hawaii’s clean energy economy don’t flow exclusively to higher-income homeowners who can afford large upfront costs or qualify easily for solar loans. HGIA recognized that Hawaii’s most economically vulnerable households are also among those hit hardest by the state’s high electricity rates, and that without a financing tool designed specifically for them, they would remain locked out of solar entirely.
GEMS fills that gap by offering fixed-rate, long-term financing for qualifying clean energy systems, with repayment collected through the borrower’s Hawaiian Electric bill rather than through a separate loan payment.
Who Oversees the Program Day to Day?
HGIA administers GEMS at the state level. Hawaiian Electric serves as the billing agent—collecting loan repayments through the monthly electric bill and remitting them back to HGIA. Your solar contractor handles the technical side: system design, permitting, installation, and interconnection.
For Hilo homeowners and renters, the relevant Hawaiian Electric service territory is HELCO (Hawaii Electric Light Company), the Big Island utility. HELCO participates in the GEMS program, and the on-bill repayment mechanism functions through your HELCO account.
Why GEMS Matters Specifically in East Hawaii
Hilo’s economic profile makes GEMS particularly relevant here. East Hawaii has a significant population of long-term renters, working families, and households on fixed incomes—many of whom have been paying high electricity bills for decades without any realistic path to solar ownership.
Older Housing Stock
A large share of Hilo’s residential properties are older homes—wood-frame structures built decades ago, many of which are rental properties. These homes are often less energy-efficient than newer construction, which means energy costs are higher. They’re also often owned by landlords who haven’t historically had strong incentives to invest in solar for their tenants.
GEMS changes this dynamic by creating a pathway for renters themselves to initiate a solar installation—with the landlord’s consent—without requiring the landlord to put up capital or take on debt.
High Electricity Rates With Limited Savings Options
The combination of HELCO’s rates and Hilo’s humid climate—where dehumidification, water heating, and cooling run consistently—means electricity bills here can be punishing for households that don’t have the resources to reduce consumption or generate their own power. A $300–$500 monthly electric bill is not unusual for a Hilo household with moderate energy needs.
For a family living paycheck to paycheck, a $200–$400 monthly utility bill isn’t an abstraction—it’s a real strain. GEMS offers a way to address that strain without requiring savings, credit scores, or homeownership.
The Tax Credit Problem for Low-Income Households
The federal Investment Tax Credit (30%) and Hawaii’s state solar tax credit (35%, capped at $5,000) are genuinely valuable—but they only help people who have meaningful federal and state income tax liability. A household earning low wages or drawing primarily from Social Security, SSI, or other fixed-income sources may have little to no tax liability. For these households, the headline solar incentives that benefit higher-income buyers simply don’t apply.
GEMS doesn’t rely on tax credits to make the math work. The program structures financing around the electricity savings the solar system generates, making it accessible to people who can’t benefit from tax credit stacking.
How GEMS On-Bill Financing Works
The mechanics of GEMS are straightforward once you understand the on-bill structure. Here’s how it works in plain terms.
The Basic Structure
- You apply for GEMS financing through HGIA (often with assistance from your solar contractor).
- HGIA approves your application and finances the cost of your solar system.
- Your solar contractor designs, permits, and installs the system.
- Once the system is installed and operational, HGIA adds a fixed monthly repayment charge to your Hawaiian Electric bill.
- Your solar system generates electricity that offsets your consumption—reducing the generation portion of your bill.
- The net result: your bill may stay similar, decrease slightly, or in some cases actually be lower than it was before solar, depending on your system size and loan terms.
On-Bill vs. On-Meter
It’s worth clarifying a common point of confusion: GEMS is an on-bill program, not a traditional on-meter PACE (Property Assessed Clean Energy) lien. The repayment obligation is tied to the electric account, not recorded as a lien against the property title in the same way that some PACE programs work.
This has practical implications for renters in particular. Because the financing is attached to the electric account rather than the property title, renters who set up GEMS financing do so under their own account. The specific terms of how this is handled—and how it interacts with tenancy agreements—should be reviewed carefully with HGIA and a qualified legal or financial advisor for your situation.
Fixed Rate and Long Term
GEMS offers fixed interest rates over loan terms that can extend up to 20 years. The long repayment term keeps monthly payments low enough that they are typically offset by solar generation savings. HGIA sets rate tiers based on applicant income level—more on that in the eligibility section below.
No Prepayment Penalty
If your financial situation improves and you want to pay off your GEMS loan early, the program does not impose prepayment penalties. You can pay down the balance at any time without additional cost.
Who Qualifies for GEMS in Hilo?
GEMS has broader eligibility than most solar financing options, but there are still requirements. Here’s a breakdown of who can participate.
Residential Customers of Hawaiian Electric
In Hilo, this means HELCO customers. You must have an active, residential electric account with HELCO. Commercial accounts have different program options.
Homeowners
Hilo homeowners who want to finance a solar system through GEMS can do so. Homeownership is not required—renters can also participate—but homeowners benefit from the program when they prefer not to use cash, don’t want to take on a traditional solar loan, or don’t have sufficient tax liability to fully utilize the ITC.
For homeowners who own the property outright (no mortgage or a small remaining balance), GEMS can be particularly attractive because it doesn’t require a credit check in the same way that a conventional solar loan would, and it doesn’t require any home equity calculation.
Renters With Landlord Consent
This is where GEMS stands apart from nearly every other solar financing program available to Hawaii residents.
Renters can participate in GEMS—but they need their landlord’s written consent. The landlord must agree to the installation of a solar system on the property and acknowledge the financing arrangement. The specific documentation requirements are set by HGIA and should be confirmed directly with the program.
From the landlord’s perspective, GEMS can actually be an attractive arrangement: the renter takes on the financing responsibility, the solar system adds value to the property, and the landlord’s capital is not at risk. Not every landlord will be receptive, but many Hilo landlords have found the arrangement workable.
If you’re a Hilo renter interested in GEMS, having a clear, informed conversation with your landlord—explaining how the program works and what they’re being asked to consent to—is the right first step. A solar contractor experienced with GEMS can sometimes help facilitate this conversation by providing materials that explain the program in straightforward terms.
Low-Income Households: Enhanced Benefits
HGIA has structured GEMS with specific provisions for low-income households, including subsidized interest rates that are lower than standard GEMS rates. These subsidized rates are available to households that meet income eligibility thresholds, which are based on the Area Median Income (AMI) for Hawaii County.
Low-income eligibility tiers and the corresponding subsidized rates should be confirmed directly with HGIA at the time of application, as program terms are updated periodically.
For households that qualify for the lowest income tiers, the subsidized rate can make GEMS financing genuinely close to the total cost of electricity they would otherwise pay—meaning the transition to solar costs them little to nothing in additional monthly outlay.
Credit Considerations
GEMS is not a credit-score-free program—HGIA does review applicant financial information. However, the program’s underwriting is different from a conventional solar loan. The focus is on your ability to pay the HELCO bill (which you’re already doing) rather than on creditworthiness metrics that traditional lenders use. Households with limited or imperfect credit histories who would be denied by a conventional solar lender may still qualify for GEMS.
HGIA can explain the specific underwriting criteria in detail. The key point for Hilo households is that GEMS was deliberately designed to reach people who don’t fit the standard loan approval profile, so it’s worth applying even if you’ve been turned down elsewhere.
What Systems Does GEMS Finance?
GEMS covers more than just solar panels. The program finances a range of qualifying clean energy systems and upgrades.
Solar Photovoltaic (PV) Systems
Solar panels and associated equipment—inverters, racking, wiring, monitoring—are the most common GEMS application. For Hilo homes, a properly designed PV system offsets electricity consumption throughout the day and can be paired with battery storage (see below) for extended coverage.
System sizes for GEMS-financed installations in Hilo typically range from 4 kW to 10 kW for residential use, depending on the home’s square footage, energy consumption, and roof space. Smaller systems are appropriate for lower-consumption households; larger systems are better suited for homes with multiple AC units, electric water heaters, or EV chargers.
Solar Water Heating
Solar water heaters—distinct from solar PV panels—use sunlight to heat water directly, reducing or eliminating the energy used by a conventional electric water heater. In Hilo, where water heaters run year-round and contribute meaningfully to monthly electricity bills, solar water heating can be a high-return investment.
GEMS finances solar water heating systems, and in some cases, solar water heating may be the right starting point for a Hilo household that wants to reduce their bill meaningfully without committing to a full PV installation.
Energy Efficiency Upgrades
GEMS can also finance qualifying energy efficiency measures—LED lighting upgrades, insulation, energy-efficient windows, and HVAC improvements. For older Hilo homes with aging electrical infrastructure and poor insulation, pairing energy efficiency upgrades with solar can produce more significant bill reductions than solar alone.
Financing multiple measures under a single GEMS application—solar PV plus an efficiency upgrade, for example—is possible and can simplify the process compared to financing each measure separately.
Battery Storage
Battery storage system eligibility under GEMS has specific conditions. Adding a battery to a GEMS-financed solar installation can extend the value of the system by providing backup power during outages and allowing stored solar energy to offset evening consumption.
For Hilo households—where power outages, particularly during heavy rain events or Kona wind conditions, are not rare—the backup power function of a battery has practical value beyond the financial calculation. Confirm current battery storage eligibility and financing terms with HGIA at the time of application.
The GEMS Application Process: What to Expect
The GEMS application process involves coordination between you, your solar contractor, and HGIA. Here’s a general overview of how it flows for a Hilo household.
Step 1: Pre-Application Consultation
Before you apply, it makes sense to speak with a solar contractor in Hilo, HI who has experience with GEMS. They can help you understand what size system makes sense for your home, what the financing would look like under GEMS terms, and how to gather the documentation you’ll need for the application.
This consultation is also the right time to talk through your energy usage, your current HELCO bill, and your goals—whether that’s maximum bill reduction, backup power capability, or simply getting solar with no upfront cost.
Step 2: GEMS Application Submission
You submit your GEMS application to HGIA. Required documentation typically includes:
- Proof of identity
- Proof of residence (for renters, a copy of your lease)
- Recent HELCO electric bills (typically three to twelve months of history)
- Income documentation if applying for subsidized low-income rates
- Landlord consent documentation (for renters)
HGIA reviews applications and makes credit and eligibility determinations. Processing time varies; plan for several weeks from application submission to approval.
Step 3: System Design and Approval
Once your financing is approved in principle, your solar contractor prepares a detailed system design. HGIA reviews the proposed system to confirm it meets program requirements—appropriate sizing, qualifying equipment, and alignment with your energy needs.
Oversizing a system relative to your actual consumption is something GEMS actively avoids—the program is designed to finance systems that make economic sense for the household, not to maximize panel count.
Step 4: Hawaii County Permitting and HELCO Interconnection
Permitting and interconnection run parallel to the GEMS approval process. Your contractor submits permit applications to Hawaii County’s Department of Public Works and an interconnection application to HELCO. Both are required before installation can begin.
Permit and interconnection timelines in Hilo are generally more manageable than on Oahu, but they add time to the project schedule. A contractor who submits clean, complete applications the first time avoids the delays that come from rejection and resubmission.
Step 5: Installation
With financing confirmed, permits approved, and interconnection clearance in hand, your contractor installs the system. Installation timelines for a residential solar system in Hilo range from one to three days depending on system size and site conditions.
Older Hilo homes sometimes present installation complications—aging electrical panels that need upgrading, roofing materials that require additional attention, or structural considerations on older wood-frame houses. A contractor who works regularly in East Hawaii knows what to look for and factors it into the project scope upfront rather than presenting surprises mid-installation.
Step 6: Inspection and Permission to Operate
Hawaii County inspects the completed installation. HELCO issues Permission to Operate (PTO), which authorizes your system to connect to the grid and begin generating power.
Step 7: On-Bill Repayment Begins
Once the system is operational, HGIA adds the monthly loan repayment charge to your HELCO bill. Your solar generation begins offsetting your electricity consumption, and the net effect on your monthly bill reflects both the reduction in electricity charges and the addition of the GEMS repayment.
The Cash Flow Reality: What Does GEMS Cost You Each Month?
The most common question Hilo households ask about GEMS: will my bill actually go down, or am I just replacing one payment with another?
The honest answer is: it depends on your system size, loan term, interest rate, and current electricity consumption. But the program is specifically designed so that the solar savings offset the loan payment—and in many cases, the offset is close to neutral or even favorable from month one.
A Realistic Example for a Hilo Household
Consider a Hilo family currently paying $280 per month to HELCO. They qualify for GEMS at a subsidized low-income rate and install a 6 kW solar PV system.
- Estimated solar generation offset: $160–$200 per month in electricity savings
- GEMS monthly loan repayment: $120–$160 per month (depending on term and rate)
- Net change to their HELCO bill: Roughly neutral to slightly positive
In this scenario, the family’s bill doesn’t increase meaningfully—and as HELCO’s electricity rates rise over time (which has been the consistent historical trend), the value of their solar generation increases while their GEMS repayment stays fixed.
Over the life of the loan, they will have financed and paid for a solar system that continues generating power for 25+ years after the loan is retired. For the last 10–15 years of the system’s life, that generation is pure savings with no offsetting loan payment.
This is why GEMS proponents describe it as eventually free solar: you pay for it over time through savings you generate, and then you own a power plant on your roof.
GEMS and the Federal Tax Credit: An Important Clarification
Because GEMS is primarily designed for households with low or moderate tax liability, the 30% federal Investment Tax Credit may not be directly applicable to many GEMS participants in the way it is for higher-income solar buyers.
However, if a GEMS participant does have federal tax liability—perhaps a dual-income household at the lower edge of moderate income—they may still be able to claim the ITC for the system cost. The ITC eligibility requirement is system ownership, and GEMS financing does result in the borrower owning the system (as opposed to a lease or PPA).
If the ITC applies to your situation, claiming it could allow you to pay down your GEMS loan principal, reducing your monthly payment and/or shortening your loan term. This should be discussed with a Hawaii tax professional before assuming it applies to you.
The Hawaii state solar tax credit similarly requires tax liability to be useful. For many GEMS target households, neither credit will be a significant factor—and that’s precisely why GEMS exists as an alternative pathway.
Renters: How to Talk to Your Landlord About GEMS
This is the section many Hilo renters need most. Getting landlord consent for a GEMS installation requires a conversation that many tenants feel uncertain about having. Here’s how to approach it.
Lead With What’s in It for Them
Your landlord’s primary concern is their property. Frame the GEMS proposal in terms of what benefits them:
- The solar system adds value to the property at no cost to the landlord
- The financing obligation rests with the tenant, not the landlord
- A solar-equipped rental property may be easier to rent and command higher rent in the future
- The system increases energy efficiency, which can be a selling point
Be Specific About What Consent Involves
Landlords are often nervous about vague agreements. Be clear about what they’re being asked to do:
- Sign a consent form authorizing the installation
- Allow the solar contractor access to the roof and electrical panel
- Acknowledge the financing arrangement between you and HGIA
They are not co-signing a loan. They are not financially responsible for the GEMS repayment. They are not guaranteeing anything about your tenancy. Their role is to grant permission for the installation on their property.
Have Written Materials Ready
Ask your solar contractor for GEMS program materials that you can share with your landlord. A one-page summary of how GEMS works—written clearly, without jargon—can make the conversation significantly easier. Some contractors in Hilo who work regularly with GEMS have developed landlord-facing materials specifically for this purpose.
Consider a Shorter Lease or Lease Addendum
If your landlord is open to the concept but concerned about what happens if you move out, discuss how the on-bill financing works in the context of tenancy changes. HGIA has provisions for how GEMS financing is handled when a tenant moves—understanding these provisions and explaining them to your landlord can address the concern directly.
What to Look for in a Solar Contractor for GEMS Projects in Hilo
Not every solar company in Hawaii has GEMS experience, and GEMS projects have specific requirements that differ from standard cash or loan-financed installations.
GEMS Program Familiarity
Your contractor should have worked directly with HGIA on GEMS applications before—not just have general awareness of the program’s existence. Ask specifically: how many GEMS applications have they submitted? How many were for HELCO customers on the Big Island? Familiarity with the program’s documentation requirements, system sizing guidelines, and approval process matters for keeping your project on track.
Hawaii Contractor Licensing
As with any solar installation in Hawaii, your contractor must hold a valid C-61 (Photovoltaic Systems Specialty) license and must involve a licensed electrician (C-13) in the electrical work. Verify license numbers through the Hawaii DCCA before signing anything.
Experience With Older Hilo Homes
GEMS projects often involve older properties—the program’s target demographic includes people in Hilo’s aging housing stock. A contractor who regularly installs systems on post-war era wood-frame homes in East Hawaii will have encountered the common issues: undersized electrical panels that need upgrading, roofing materials that require careful penetration techniques, and structural considerations that differ from newer construction.
Transparent System Sizing
HGIA’s program guidelines require that GEMS-financed systems be sized appropriately for the household’s actual energy consumption—not oversized in a way that doesn’t serve the customer. A contractor who proposes the largest possible system regardless of your consumption history is not approaching GEMS correctly. Look for a contractor who reviews your actual HELCO bills and proposes a system sized to genuinely match your needs.
Clear Communication About Timelines
GEMS projects take longer than cash-financed installations because of the HGIA application and approval process. A contractor who sets accurate expectations about the full timeline—from initial consultation to Permission to Operate—is one who understands the process. Be wary of anyone who promises unusually fast timelines without being able to explain specifically how they achieve them.
Workmanship Warranty
Ask about the contractor’s workmanship warranty on the installation itself. Roof penetrations, electrical connections, racking hardware—all of these require solid workmanship that holds up in Hilo’s rainfall, humidity, and wind conditions. A workmanship warranty of at least 10 years is a reasonable baseline; more experienced contractors often offer more.
Common Questions About GEMS in East Hawaii
Can I apply for GEMS if I have bad credit?
HGIA’s underwriting is different from a conventional lender. Your HELCO payment history is a meaningful factor, and the program is designed to serve households that don’t fit standard loan profiles. It’s worth applying even if you’ve been turned down for a conventional solar loan. HGIA can explain what they look at during the review process.
What happens to my GEMS loan if I move?
If you’re a homeowner and sell the property, the GEMS loan repayment obligation will need to be addressed at the time of sale—either paid off or transferred, depending on program terms at the time. If you’re a renter and move out, the on-bill financing is tied to your HELCO account, not the property—meaning the new tenant or the landlord would not inherit the obligation in the same way a PACE lien might work. The specifics of tenancy-end scenarios should be confirmed with HGIA before you enroll.
Does the solar system belong to me or to HGIA?
You own the solar system. HGIA is the lender, not the owner. The financing is a loan that you repay over time, and you hold ownership of the equipment throughout.
Can I combine GEMS with the BYOD+ battery rebate?
If you’re adding a battery storage system as part of your GEMS-financed installation, you may be able to enroll the battery in Hawaiian Electric’s BYOD+ program and receive the $400/kW upfront rebate. How that rebate interacts with your GEMS loan balance—whether it can be applied to reduce principal, for example—is something to confirm with both HGIA and Hawaiian Electric. Combining these two programs can potentially improve the economics of your installation significantly.
What if my roof needs repairs before solar can be installed?
GEMS can sometimes finance minor roof repairs that are necessary to support the solar installation, as part of a broader clean energy project. Major roof replacements are typically outside the program scope. Your contractor should assess your roof during the initial site visit and be upfront about any structural concerns.
How long does HGIA take to approve a GEMS application?
Processing times vary and have ranged from a few weeks to a couple of months depending on application volume. Starting the application process early—before you’ve finalized every detail of the system—is the practical approach, so the financing approval isn’t the last thing holding up your project.
The Bigger Picture: Energy Equity in East Hawaii
GEMS isn’t just a financing product—it’s an acknowledgment that Hawaii’s clean energy goals can’t be achieved on the backs of homeowners with high incomes alone. The state’s 100% renewable energy mandate, Hawaiian Electric’s grid modernization, the expansion of distributed solar: all of these benefit from broad participation across all income levels and housing situations.
Hilo’s community is diverse. Working families, long-term renters, kupuna on fixed incomes, multi-generational households in older neighborhoods—these are real people paying real money to HELCO every month, and they have as much stake in the clean energy future as any homeowner in a new Kailua-Kona subdivision.
GEMS is the program designed to make that participation possible. And as East Hawaii’s solar industry matures and more contractors develop genuine expertise in GEMS applications, the barriers that have kept lower-income Hilo households out of solar are becoming genuinely surmountable.
If you’ve assumed that solar wasn’t an option for your household—because you rent, because your income is limited, because you don’t have a down payment or strong credit—it’s worth finding out whether GEMS changes that calculation for you.
Solar Saint Is Ready to Help Hilo Households Explore GEMS
Solar Saint works with East Hawaii homeowners and renters who want to understand whether GEMS financing is right for their situation. The team knows Hilo’s housing stock, HELCO’s programs, and the GEMS application process—and they work with households across the income spectrum, not just those who can write a check upfront.
Whether you’re a renter trying to figure out how to approach your landlord, a homeowner on a fixed income who assumed solar was out of reach, or a family who has been paying a punishing HELCO bill for years without seeing a path forward—Solar Saint will give you a straight answer about what’s possible and what the process actually looks like.
No jargon. No pressure. Just honest information from a solar contractor in Hilo, HI who understands what this community needs.
