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Solar panel cost data Alaska 2020

Updated: May 21, 2020

As of Sep 2020, the average cost of solar panels in Alaska is $2.41 per watt making a typical 6000 watt (6 kW) solar system $10,678 after claiming the 26% federal solar tax credit now available.

This is lower than the average price of residential solar power systems across the United States which is currently $2.53 per watt.

Solar panel installation cost in AK by system size in 2020

Table 2: Average cost of residential solar systems by system size
System size* Avg cost
per watt
Avg Cost
(After tax credit)
show before tax
4kW $2.63 $7,785
5kW $2.52 $9,331
6kW $2.41 $10,678
7kW $2.38 $12,318
8kW $2.40 $14,208
9kW $2.33 $15,538
10kW $2.31 $17,064

Current solar panel cost near you in AK

Cost range of local prices

Net profit (savings less system cost)

37776

Payback period

9.24

Recommended size for the selected utility bill

9.580

Chart 1: What is a good price for a 6.00kW solar system in Alaska after tax credits.

$11K
SolarReviews average

Solar panel cost calculator

Calculating the cost of solar panels for your specific home in AK

Installation costs for solar will vary with your location and the size of your homes electricity bill. To be meaningful solar cost information needs to be tailored to the individual situation. If you enter your details into the solar calculator below you will get a solar cost and savings estimate and find out how much solar panels will cost for your home based on current offers from your local solar installation companies.

Who are the best solar panel installation companies in Alaska that offer the best deals on quality solar systems?

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Use our solar cost calculator to get an online solar estimate and gather solar system quotes for your home in AK

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What factors affect the cost of solar panels for your home?

There are many factors that affect solar panel installation costs with regard to specific homes, including:

The location of your home

The location of a home affects the cost of installing solar in a few ways. The amount of sunlight available affects system output and so dictates how many solar modules you will need. Obviously the more solar panels you need the higher the cost. Market prices are also different in different locations because of factors including average system sizes in that location, competition between installers, local job volumes, and the cost of business overheads.

The amount of electricity your home uses

A house that uses more electricity will need more solar panels. Although solar panels do get cheaper on a per-watt basis, as the system size gets bigger, the overall cost of the system increases, as well.

The type of solar panels and inverter you buy

There is a significant difference in cost between the top-rated solar panels and brands that are perceived to be of lesser quality. The same is also true for inverters. For example, a 6kW solar system using Sunpower or Panasonic solar panels can be as much as $5,000 more expensive than a solar system using Canadian Solar Modules.

The relative ease or difficulty of installing solar panels on your home

If your roof is particularly difficult to install solar panels on, say, if your home is three stories high or has a roof with a 45° pitch, it will take longer to install the panels and do the wiring.

How is the cost of solar panels for homes in Alaska offset by solar tax credits?

The cost of installation of renewable energy systems in Alaska is supported by the federal solar investment tax credit.

The amount of this tax credit is currently 26% of the value of the solar system and it is claimed on your taxes in the year after installation.

Many people mistakenly refer to this tax credit as the Alaska solar tax credit but it is actually a federal tax credit.

Alaska itself does not offer a solar tax credit.

How does the cost of solar power compare to the electricity rates charged by a utility? (per kWh)

Levelized cost of power from this typical solar system installed on a home in Alaska over 25 years is 8.7 cents/kWh.

Average cost of utility power over 25 years (if you don't get solar) is 33.9 cents/kWh. This shows that solar is a far cheaper way to power your home in Alaska over the long term. The way we calculate the average cost of utility power is by assuming the current utility electric rates will grow each year at a compound rate of 3.5%. Actual inflation may be higher or lower than this but either way this analysis shows that solar is a clearly better choice.

Are solar panels worth it in Alaska in 2020

The table below shows the data extracted from a real life quote delivered through the SolarReviews marketplace recently for a fairly typical home in Alaska.

As you can see the payback period is relatively short and equates to a much better return on investment than he historical returns that have been available from investing in things like shares or property.

Table 2: Cost, savings and payback period for an average residential solar system in Alaska
System information Value
System Size (for 100% usage offset) 9.58 kW
Annual power generation 8,526 kWh
Pay-back time (assuming Cash purchase) 9.2 Years
Internal rate of return (IRR) on investment 6.1%
Gross cost $22,829
Total Upfront Incentives and Rebates -$5,935
Net Cost of System after rebated and incentives $16,892
Total Cost of Utility Power Avoided over 25 years $54,668

Please note that the investment return figures do not include the possible increase in property value

Installed solar system cost for the best brands of solar panels in 2020

Below are the solar panel costs for systems using the 20 most frequently-installed residential solar panels. This list also includes the most efficient solar panels on the market, which is likely the reason they are the most commonly-installed.

Table 3: Installed system cost before tax
Panel model Lowest cost
p/w
Avg cost
p/w
LG Solar
LG335N1K-V5
$2.47 $2.73
LG Solar
LG375A1C-V5
$2.42 $2.81
LG Solar
LG375Q1C-V5
$2.58 $2.82
LG Solar
LG365Q1K-V5
$2.52 $2.76
Panasonic
VBH330RA03K
$2.43 $2.88
Panasonic
VBHN340SA17 HIT+
$2.54 $2.78
Panasonic
VBHN330SA17E
$2.47 $2.79
Panasonic
VBHN335SA17
$2.60 $2.85
SunPower
SPR-E20-327-COM
$2.53 $2.89
SunPower
SPR-X22-360
$2.54 $2.97

Showing 1 - 10 of 20

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Tesla solar panel prices in Alaska

Tesla is one of the only companies that displays their installed system pricing online. We are encouraging more solar companies to do the same. They have a very poor reputation for customer service on reviews websites like ours however we applaud their move to bring pricing transparency to the residential solar industry.

Table 4: Tesla system prices
Type Size Cost
Grid Tied 4.08 kW $8,160
Grid Tied 8.16 kW $16,320
Grid Tied 12.24 kW $24,480
Grid Tied 16.32 kW $32,640

Note: Prices for installed Tesla systems are shown before the 26% federal solar tax credit.

Why solar panel cost should not be your only consideration when buying solar panels for your home

The most important difference between buying solar panels and any other purchase is that solar panels last 25-30 years. This is a long, long time and you will need customer service over all that time. The reviews below of the two largest corporate solar installation companies indicate larger corporate solar companies are not delivering this support to their customers.

We recommend you find a small or mid-size, local, family-owned solar company. These companies tend to care more about you and your specific job. You don't want to be on hold to a corporation's call center for the next 25 years!

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