Solar Panels in Alaska2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Alaska.
$22,000–$38,000
Avg system cost
$15,400–$26,600
After 30% ITC
3 hrs/day
Peak sun hours
$0.243/kWh
Avg rate
Is Solar Worth It in Alaska?
Based on a home with a $150/month electric bill in Alaska
Est. system size
6.2 kW
Gross cost
$18,048
Federal tax credit
−$5,415
Net cost
$12,634
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 7 years — then 13 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Alaska Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Alaska State
State Incentive
Rebates available through some utilities
Additional Alaska Solar Policies
Net Metering: Limited — check with your local utility
Property Tax Exemption: No exemption — solar adds to assessed value
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in Alaska by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $1,223,991/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,713,587/yr |
| 9 kW | $22,091,040 | $15,463,728 | $2,203,184/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,937,578/yr |
* Costs based on $2.90/W national average. Alaska installer pricing may vary ±15%.
Get Your Exact Alaska Solar Estimate
Enter your monthly bill and address for a personalized savings report using actual Alaska electricity rates.
Get Free Solar Quotes in Alaska
Compare quotes from certified Alaska solar installers — free, no obligation.
Frequently Asked Questions — Solar in Alaska
How much do solar panels cost in Alaska?
Solar installation in Alaska typically costs $22,000–$38,000 before incentives. After the 30% federal tax credit, most homeowners pay $15,400–$26,600 net.
Is solar worth it in Alaska?
Yes — Alaska homeowners benefit from 3 average peak sun hours per day and relatively high electricity rates ($0.243/kWh). The 30% federal ITC combined with rebates available through some utilities make the financial case strong for most homeowners.
What state incentives are available for solar in Alaska?
Rebates available through some utilities. On top of state incentives, all Alaska homeowners qualify for the federal 30% Investment Tax Credit (ITC).
How long is the payback period for solar in Alaska?
Based on Alaska's average electricity rate of $0.243/kWh and 3 peak sun hours, most homeowners see payback in 7–10 years. Systems then produce free electricity for 15–20+ more years.
Does Alaska have net metering?
Alaska's net metering policy is limited. Check with your local utility for current export compensation rates, as policies vary by provider.