Solar panels Alaska:

Prices, incentives and best companies 2020

Avg AK solar panel cost:

$12,697 - $15,518*

Avg 25 year savings:

$49,426 - $60,410

Avg payback period:

6.3 - 7.6 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 26% federal tax credit.

Alaska solar panels guide 2020

Updated August 18, 2020

Although Alaskan homeowners don’t have as much access to solar incentives as residents in other states, they can still take advantage of the federal tax credit. The credit, along with the state-mandated net metering, provides savings to those who install solar in Alaska.

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Solar power prices, savings and payback in your part of Alaska

The average cost for an installed residential solar system in Alaska is currently $10,678 after claiming the 26% federal solar tax credit. This is $2.41 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Cost range of local prices

$12,697-$15,518

Net profit (savings less system cost)

$49,426-$60,410

Payback period

6.3-7.6 years

Recommended size for the selected utility bill

6.0kW

Solar panel cost calculator

Cash flow graph based on cash purchase of a 6.0kW system

Are solar panels worth it in Alaska

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

8¢ /kWh

If you don't get solar

34¢ /kWh

(forecast avg Alaska electric rates over the next 25 years)

AK solar panel cost calculator

Alaska solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses is the federal tax credit. Right now, the federal tax credit is equal to 26% of the total installed costs of installing a solar system. At the end of 2020, the amount of the credit will fall to 22%. This means that in order to maximize your savings potential, the best time to go solar in Alaska is now. 

Another key incentive for going solar is Alaska’s net metering policy. Having a statewide net metering policy in place creates the potential for big energy bill savings.

Alaska state tax credit

Alaska does not have a state solar tax credit. However, Alaska residents can take advantage of the 26% federal tax credit.

Net metering

Alaska does have a state-wide net metering policy that applies to all utilities in the state. Sadly, utilities are only required to give customers the avoided cost rate for excess solar energy sent to the grid, which is much less than the full retail value of electricity.

Utility incentives

Golden Valley Electric Association, one of the state’s utilities, offers rebates to their customers through their SNAP Plus program. Excess energy produced by a SNAP Plus member’s solar array is compensated at the utility’s non-firm rate. Additionally, SNAP Plus members receive a yearly rebate payment from the SNAP fund.

Property tax exemptions

Alaska has a law that allows local jurisdictions to decide if they want to exempt solar energy systems from property tax assessments. However, it is not required.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Net Metering

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Top models of solar panel installed in Alaska 2020

Average cost of solar panel installation in Alaska by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $10,520 $11,256
5kW $12,610 $13,493
6kW $14,430 $15,440
7kW $16,646 $17,811
8kW $19,200 $20,544
9kW $20,997 $22,467
10kW $23,060 $24,674

Best solar companies in the main cities of Alaska

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Alaska

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter, where the direct current (DC) is converted into alternating current (AC). The electricity is then either used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the sun; there’s no utility to fall back on. The solar installation needs to power your home not just during the day, when the sun is shining, but after dark as well. This requires many solar panels, paired with a large battery system.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. This reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Alaska in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Alaska will fall during 2020.

How much electricity do solar panel systems generate in Alaska?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 0-degree pitch roof Alaska will generate 1,550kWh of peak DC (direct current) capacity per year per 1kW in Alaska.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in Alaska?

The advantage of installing solar panels in Alaska is the state’s net metering policy, which guarantees solar homeowners will get some sort of compensation for excess solar energy sent to the grid. Alaska also has some of the highest electricity prices in the nation, so the amount that residents can save going solar is huge. 

Not to mention, you can take advantage of the 26% federal tax credit, as well.

The disadvantage to installing solar panels in Alaska is that there is very little in the way of state-based and utility-based incentives. Alaska also receives less sunlight than many other states, so a solar panels system here won’t produce as much electricity as it would in other states. 

However, the 26% federal tax credit still creates an opportunity for great savings. The best time to make the switch to solar in Alaska is now! Enter your details to calculate the cost and savings you are likely to get from installing solar panels on your home.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Alaska solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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