2022 Alaska Solar Tax Credits, Rebates & Other Incentives

Here’s a quick look at the solar incentives in Alaska:

  • Federal Solar Tax Credit (ITC)
  • Net Metering
  • Local Solar Property Tax Exemptions
  • Additional City & Utility Rebates
Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 9/28/2022

Why You Can Trust EcoWatch

Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.

How Much Can You Save With Solar Incentives in Alaska?

In this article, we’ll discuss the solar incentives and rebates available to Alaska homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Alaska.

Jump to Section:

  1. Current Solar Rebates, Tax Credits, and Incentive Programs in Alaska
  2. Net Metering
  3. Federal Solar Tax Credit
  4. FAQ: Alaska Solar Incentives

 

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Arctic Solar Ventures

  • Pros icon Outstanding customer service
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Alaska Solar

  • Pros icon Excellent reputation
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  • Con icon Slightly limited service offerings
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Renewable Energy Systems of Alaska

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  • Con icon No leases or PPAs
  • Con icon Less personalization than competitors offer

Services Offered

  • Service icon Solar Panels
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Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.

Alaska is far from one of the top states for solar, and with its minimal daylight hours and frigid temperatures, that may not come as a surprise for many. However, it’s been proven that solar can indeed work in Alaska, and with its electricity rates nearly double the U.S. average, many Alaskans have been making the switch to solar power.1,2 The majority of solar in Alaska is used for off-grid homes or buildings in remote settings. But cities like Anchorage has been making an effort to power municipal buildings with solar power.3

That said, Alaskan policymakers haven’t been as proactive when it comes to incentivizing renewable energy alternatives for Alaska residents. Aside from the federal tax credit, there aren’t many state-specific tax incentives or rebates available to Alaskans who go solar. However, the state does offer a favorable net metering program for solar users that can help you offset those high electric bills.

Watch Below: We field concerns from many Alaskan residents about whether solar panels will even work for them in the snow, so we felt it prudent to include the below video to ease any worries.

Current Solar Rebates, Tax Credits, and Incentive Programs in Alaska

Here is a quick overview of the solar rebates and incentives Alaska homeowners can take advantage of in 2022:

Alaska Solar Incentive Description
Federal Solar Tax Credit (ITC) The federal solar investment tax credit, or ITC, allows homeowners to claim 26% of their system costs as a credit against the federal taxes they owe. The credit is set to reduce to 22% in 2023 and will be eliminated for residential systems in 2024 unless it is extended by Congress.4
Net Metering Through net metering programs, any extra power your solar energy system produces is sent to the local grid in exchange for utility credits that you can use toward future bills. In Alaska, utility companies are required to offer net metering to owners of all solar energy systems up to 25 kilowatts. The credits are valued at the retail rate of electricity and can be carried over indefinitely.5
Local Property Tax Exemption for Renewable Energy Systems The state of Alaska currently has a law that states it’s up to the municipalities to exempt or partially exempt residential property owners from taxation for renewable energy systems. The law applies to any clean energy system, including wind, hydro and solar power systems.6 

Alaska Solar Incentives

solar panels on a half cloudy day

Unfortunately Alaska also doesn’t offer a state tax credit or dedicated rebate for solar panel installations as some states do. That said, some solar companies in Alaska may offer their own installation or equipment rebates. Check with your solar provider to see if you’re eligible for any additional rebates or financial incentives for your renewable energy system.

Alaska Solar Property Tax Exemption

While Alaska does not have a statewide solar tax exemption for property taxes, the state allows municipalities to create their own laws to exempt or partially exempt residential property owners from taxation for renewable energy systems.7 The exemption may apply to any clean energy system, including solar photovoltaic (PV) systems as well as wind and hydropower systems.

Alaska does not have sales tax, so systems will already be exempt from that.

Net Metering in Alaska

Unlike most other states, Alaska offers true statewide net metering standards that extend to all electric utilities. Though the exact rate may fluctuate from utility to utility, this is a favorable policy for Alaska homeowners.8

If you don’t know what net metering is, here’s a quick breakdown of how it generally works:

When your solar panels generate electricity, you’re pulling less electricity from your local power grid and are, therefore, seeing lower monthly electric bills. If your solar panel system produces more electricity than you need to power your home, you can “sell” the excess energy you’ve generated back to the electric grid. Your utility company can deduct that energy amount from your monthly bill or credit it toward a future bill.

In Alaska, all surplus energy will be credited to your next month’s bill at the retail rate, and all credits may be carried over indefinitely. Additionally, utilities cannot charge solar users additional fees for things like interconnection or capacity, unless approved by the Regulatory Commission of Alaska (RCA).9

Local Incentives and Rebates

Here are a few additional incentives and rebates offered by Alaska utility companies for solar and other energy-efficiency upgrades:

Utility Company Incentive Program
Golden Valley Electric Association (GVEA) Fairbanks power company GVEA offers the Sustainable Natural Alternative Power (SNAP) program for customers who connect their renewable energy systems to the utility’s grid. The incentive is paid on a per-kilowatt-hour basis at a rate that changes quarterly.10
Alaska Power and Telephone Through its AMP-UP program, customers who purchase an electric vehicle will receive a $1,000 rebate.11
Chugach Electric Chugach offers a $200 rebate program to residential energy customers who have an electric vehicle charger at home.12

We recommend checking DSIRE to see if there are any additional Alaska solar incentives or rebates that you may be eligible for.

See Also: Calculate the costs and savings you can get from installing solar panels

bright sun shining on solar panels

Federal Solar Tax Credit

When you install solar panels on your Alaska home, you become eligible for the solar investment tax credit (ITC) — also known as the federal solar tax credit — which you can claim on your federal filing. The solar tax credit is not a set dollar amount, but rather a percentage of what you spend to install your residential solar system.

The tax credit is currently set at 26% of your total system cost but is expected to decrease in 2023 and disappear completely for home systems come 2024, so the sooner you install your solar panel system, the better your savings will be.13

 

Read More About Going Solar

FAQ: Alaska Solar Incentives

EcoWatch routinely gets questions from Alaska homeowners about going solar. Here are a few of the most common questions we see, along with our answers. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.

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Karsten Neumeister

Solar Expert

Karsten is a researcher, editor, writer and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.