Alaska solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Alaska solar incentives 2020

State legislators here have kept a pretty low profile on renewable policy, particularly with regard to solar power. Alaska is the final frontier and remote settlements mean many homes are built off-grid, i.e. ideal for self-sustaining renewables like small-scale solar.

This, along with rising fuel costs, makes Alaska an ideal candidate for solar power, and the legislature should adopt aggressive measures to promote solar use by its residents. Lawmakers should start with an enhanced renewable portfolio standard (RPS), to make the transition to a clean energy future smoother for us all.

Since prices for solar equipment and installation are falling all over the world, home solar here pays itself back 4 years faster than it did this time last year. That's something to celebrate, so if you're still thinking about solar in the Land of the Midnight Sun, keep reading- and use our solar calculator to map your savings.

On this page, you can:

  1. Learn what solar incentives are available to Alaska homeowners

  2. See what Alaska solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Alaska solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Alaska

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in Alaska

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.

Unlike many states, Alaska has statewide net metering standards in place. Utilities are required to offer net metering to all systems up to 25 kW. All surplus energy is credited to your next month’s bill at the retail rate, and all credits may be carried over indefinitely. That’s a boon to you as a solar owner, as you can effectively use the utility as a battery for when you aren’t able to use all the power you generate!

Alaska solar rebates

Cost of solar panels in your part of Alaska after all applicable solar incentives

Solar prices near you

Cost range of local prices

$12,707-$15,531

Payback period

7.6-9.3 years

Net profit (savings less system cost)

$31,081-$37,988

Average size system installed in AK in 2020

8.8kW

Solar panel cost calculator

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