Solar Panels in Alaska | 2022 Cost and Incentives | SaveOnEnergy®

Alaska Solar Panels: Pricing and Incentives

How much do solar panels cost in Alaska?

home with solar panels on the roof


Walter Bibikow/DigitalVision/Getty images

Solar power in Alaska

Alaska, a state known for its limited sunlight, has tapped into the world of solar energy. With enough energy to power just over 2,000 homes, Alaska has invested approximately $41 million into the solar industry. Ranked 48th in 2021, Alaska’s solar projection estimates an increase of 23 megawatts (MW) over the next five years.

Solar energy is a good option for homes in prime locations. Despite its limited availability, solar energy can save homeowners money on their utility bills. The price of solar installation has decreased 4% over the last five years. If you choose to install solar panels, you may qualify for federal and state tax credits and increase your home’s total value. Solar power is also a more sustainable energy source for the environment.

Alaska solar panel cost

 The cost of solar panels is measured in dollars per watt. The median price of a residential solar system is $24,742 before any tax credits or rebates. Your total price can decrease when factoring in these federal and state incentives. You will also recoup your initial cost through monthly utility savings within about six to nine years on average. 

The price of solar installation breaks down into hard costs and soft costs. The hard costs, or the panels and inverter, may account for less than one-third of the overall cost. Soft costs comprise the rest and include permits, inspections, and labor. The size requirement of your system, location, and the optional addition of a solar battery can increase the average price. To better understand your expected costs, you can ask a reputable installer for an estimate. Call one of our energy experts at 866-420-6556 to get started.

The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home — all for free. If you’re interested in solar, answer a few questions to get an exact price quote from our solar advisors.

Alaska solar panel incentives or rebates

Homeowners should explore all rebates and incentives to help offset the initial solar investment.

The federal government established the Residential Clean Energy Credit — formerly known as the Investment Tax Credit (ITC) — in 2005 to encourage American homeowners to switch to solar power. If you installed solar energy at your primary or secondary home in 2022 and meet the other qualifications, you may be eligible for a 30% federal tax credit through 2032. Your tax credit could be over one-fourth of the total cost. 

Currently, Alaska does not offer any state-level incentives or rebates for solar energy. However, there is a statewide metering policy for all utilities, which means you return any excess energy to the power grid for credits you can use during months you do not generate enough power.

Why choose Alaska solar power?

Lower energy costs 

One of the most convincing reasons to choose Alaskan solar power is the long-term financial savings. Although solar systems cost a lot up front, the cost balances itself out in a few years from savings on monthly electricity bills. You can credit excess solar energy to cover future power usage costs if you generate more than you need. You may even reach a point where you owe nothing for a few months. Investing in solar energy also increases your home’s resale value by up to $15,000 and may help your home sell faster.

Establish energy independence

Another reason you might choose Alaskan solar power is to gain energy independence. Since excess generated solar energy can get stored in a battery, you can count on some electricity during a power outage. If there is a period of high demand on the power grid, you can resume energy consumption as normal for as long as you have power in your battery. The battery works like a generator but recharges itself through harvested sunlight. Personal energy independence also promotes nationwide energy independence from fossil fuel imports.

Go green

The final reason to choose Alaskan solar power is to invest in a sustainable lifestyle, starting with renewable energy. Although solar plants come with certain challenges, solar energy is a better environmental option. Unlike fossil fuel plants, solar does not emit greenhouse gasses into the air. Plus, replacing nonrenewable energy sources with solar power can help to reduce pollutants in the atmosphere and our water supply. These positive impacts can gradually improve health and decrease detrimental climate change costs.

Should I buy or lease my solar panels?

There are two major ways to pay for solar system installation — buying and leasing. Due to the high up-front cost of purchasing a solar system, your family may be in a better position to lease. However, when evaluating total savings, buying your solar system will be cheaper in the long run. Not only will you recoup the costs from monthly utility bill savings, but you may also qualify for federal tax incentives. Plus, homes with solar energy systems can increase their resale value by up to $15,000. Depending on where you live, you may qualify for community solar sharing, which is when the homeowner purchases the use of solar energy from a main source.

Not all families who want to invest in a greener future can afford the high upfront cost. Solar leasing opens the option of solar energy up to more people. Even though you will not be eligible for tax incentives and home value increases, you can still save money on monthly electricity bills. One downside to solar leasing is that contracts can last up to 25 years. If you move before your solar lease is up, you will need to find a buyer who can afford to take over your lease.

Alaska solar panel companies

Investing in solar panels is a huge purchase that you should take seriously. Although several installation companies in Alaska offer solar services, you should research each company beforehand to choose the right one. Factors like a high customer service rating, experience, and lengthy warranties may ensure higher reliability. Knowing whether or not a company relies on subcontractors for the installation and how that impacts any warranty may also be a factor worth considering. SaveOnEnergy has plenty of resources to help you become more familiar with the Alaskan solar industry before you make any major decisions. If you’re ready to explore solar for your home, fill out this form or call one of our energy experts at 866-420-6556.

Important solar installation factors to consider

You may want to consider several factors that influence the effectiveness of solar panels before installing them in your home to ensure it’s the right choice for you. These important elements include:

  • The state, angle, and age of your roof. Solar panels are most effective when your roof is in good condition. The most productive setup for solar energy absorption is a south-facing roof at a 15- to 40-degree angle. 
  • The amount of sunlight in your area. Solar power comes from sunlight, so homes where trees or other objects block the sun may not generate as much electricity. You should consider the amount of direct sunlight your roof receives daily.
  • HOA and neighborhood rules. Depending on your neighborhood or HOA rules, you may need approval before installing solar panels on your home. However, the company that installs your panels may be able to help you navigate potential restrictions.

 

Solar power FAQs

How much would solar cost in Alaska? Expand / Collapse Toggle

The price for investing in Alaskan solar energy will vary by your consumption, location ], and roof condition. The median cost of a residential solar panel system nationwide is $24,742, with additional costs for a solar battery. However, you can recover these costs within the first 10 years from the amount you save in electricity bills.

Is solar power a good investment in Alaska? Expand / Collapse Toggle

Investing in solar panels in Alaska may not be practical if your home gets limited sunlight. However, homes in a prime location could benefit from energy independence and cheaper electricity bills. Your energy consumption can also influence the effectiveness of your solar system. The prior section provides additional information on factors to consider before investing in solar energy.

How much could I save by investing in solar? Expand / Collapse Toggle

Solar energy generators may qualify for federal tax credits and have the option to bank energy credits by returning excess energy to the power grid. These benefits help offset initial installation costs and will help you save money over time.

Where can I find a good solar panel installer in Alaska? Expand / Collapse Toggle

You can find a solar panel installer in Alaska by utilizing SaveOnEnergy’s resources about the solar industry. Before signing a contract with any company, vet their reputation. A good company will guarantee their work with an extended warranty to replace or repair any damaged solar panels in the future. You might also want to read through online customer reviews.

How does solar power help the environment? Expand / Collapse Toggle

Homeowners concerned with climate change who want to promote a green-living lifestyle will appreciate the switch to solar energy. Solar power is a renewable resource and does not emit greenhouse gasses, like carbon dioxide, into the atmosphere. It is better for our environment and could help cut back healthcare costs from pollutant-related illnesses.