State lawmakers are looking at ways to close the $800 million dollar budget shortfall.
One bill being considered at the capitol could save the state millions.
The bill would place a cap on the amount of renewable energy tax credits allowed each year.
Solar installation companies say that would shake-up the industry.
The solar industry in Hawaii has soared, ever since the state established a 35 percent tax credit to offset the cost of installation.
Over 700 photovoltaic systems and 10,000 solar panels have been installed statewide in the last 2 years.
But, lawmakers are finding themselves.in a tight budget crunch and have proposed a bill to put a cap on that credit.
"This tax credit prior to this bill being introduced had no ceiling," says Rep. Pono Chong, (D) Majority Whip.
Representative Pono Chong wants to limit the amount of tax credits given for renewable energy projects at $7 million dollars per year.
"We have an $800 million shortfall and we need to take a look at all the options to address that," says Rep. Chong.
Hawaii energy connection says the bill would ultimately hurt the state's clean energy initiative.
"So in fact shooting themselves in the foot is a little bit a true statement at this point," says Chris Debone, Hawaii Energy connection.
"To follow up with laws like this that are contradictions to that is just doesn't make sense," says Debone.
Debone and his partner say the proposed bill is already causing a shake-up in the solar industry.
"We had plans to hire more people, internal office people, installers, plans for more equipment, all of that has been put on hold," says Steve Godmere, Hawaii Energy connection.
Godmere says his company is one of a hundred on Oahu alone. and he's already been receiving calls from customers wanting to hold-off on installations until they are guaranteed a tax credit.
"With the confusion, and depending on how this goes down some of this inventory may be here this time next year, we don't know," says Godmere.
Representative Chong supports renewable energy but says the savings of a tax cap are too good to pass up.
"The Department of Taxations projection on the bill that we have in front of us will save taxpayers about $20 million dollars," says Rep. Chong.
House bill 566 is expected to be heard next week before the Energy and Environmental Protection committee.
