Alaska Solar Panels: Pricing and Incentives

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Solar power in Alaska

Despite being a state known for its limited sunlight, Alaska has tapped into the world of solar energy — and its residents are poised to see the financial and environmental benefits. In fact, based on the typical cost of a solar panel installation in the U.S. and the average utility bill in the state, Alaskans could recoup the upfront cost of their solar installation in about 13 years.

With enough energy to power just over 2,100 homes, Alaska has invested approximately $49 million toward its solar industry. Alaska ranked 49th in the country for solar in 2023, and the Solar Energy Industries Association (SEIA) estimates an increase of 50 megawatts (MW) over the next five years.

Despite its limited availability, solar energy can save homeowners money on their utility bills — especially for homes in prime locations. Plus, if you choose to install solar panels in Alaska, you may qualify for federal and state tax credits while increasing your home’s resale value. Even better, solar power is also a more sustainable energy source for the environment than traditional fossil fuels.

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Alaska solar panel cost

The cost of solar panels is measured in dollars per watt. In the U.S., an average solar system is 8.6 kilowatts (kW) in size and costs $3.67 per watt, for a total price of $31,558. While this may seem pricey, your total price may decrease after factoring in federal and state solar incentives in AK.

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. These include permits, inspections, and labor. The size requirement of your system, location, and the optional addition of a solar battery can increase the total price. To better understand your expected costs, you can ask a reputable installer for an estimate. Call one of our energy experts at the number on your screen to get started.

How does Alaska solar save you money?

When you install solar panels on your home, you can use solar power for your household electricity — meaning you can reduce or get rid of your monthly electric bill. Over time, the energy savings can be significant. Based on the current cost of electricity in Alaska, you could recoup your initial solar installation cost in just over 13 years — assuming that you take advantage of the 30% federal tax credit.

The best Alaska solar panel incentives or rebates

Homeowners should explore all rebates and incentives to help offset their 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.

Currently, there are not any Alaska solar incentives at the state level for solar energy.

Solar incentives in Anchorage

In Anchorage, Alaska’s most populated city, several organizations have teamed up to create a program that allows homeowners to purchase solar systems together, making their installations more affordable. Known as Solarize Anchorage, this program has helped hundreds of homeowners switch to solar in the last several years.

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 can balance itself out in a few years from electricity bill savings. You can credit excess solar energy to cover future power usage costs if you generate more than you need. Investing in solar energy also increases your home’s resale value by up to $15,000 and may help your home sell faster.

Increase energy independence

Another reason you might choose solar power in Alaska is to gain energy independence and reduce your reliance on the power grid. If you add a solar battery to your system, you can store excess solar energy to use during power outages. If there is a period of high demand on the 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 may come with certain challenges, solar energy is a better environmental option. Unlike fossil fuel plants, solar generation does not emit greenhouse gasses into the air. Replacing nonrenewable energy sources with solar power can help 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?

Alaska solar panel companies

Investing in solar panels in Alaska is a huge purchase to make with serious consideration. Although several installation companies in Alaska offer solar services, you should research each company beforehand to choose the right one — and SaveOnEnergy can help. As a customer-focused energy marketplace, SaveOnEnergy works with top-tier, reputable solar companies to bring you the best options near you. If you’re ready to explore solar for your home, fill out our estimator or call one of our energy experts at the number on this page.

What to look for in a solar contractor

When searching for a solar contractor, there are several things to keep in mind. First and foremost, you’ll want to make sure any contractor you consider is licensed, certified, and experienced. Factors like a high customer service rating, product quality, and lengthy warranties may ensure higher reliability. You should also consider whether or not a company relies on subcontractors for the installation and how that impacts any warranty.

Beware of free solar panels in Alaska scam

Remember: There is no such thing as free solar panels. No matter how good or convincing an offer may sound, any legitimate solar installation will require payment — which could be in the form of an upfront purchase, solar lease, or solar loan. Avoid working with any companies that advertise “cheap” or “free” solar panels because they are likely misleading you.

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 with trees or other objects blocking 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 homeowner’s association (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.