Cost of Solar Panels in Alaska: Local Solar Installation Prices (2022)
Here’s a quick look at the estimated cost of solar in Alaska:
- Average Cost Per Watt: $2.41
- Cost of Average System: $10,700*
- Cost of Energy Without Solar: $49,158
- Payback Period: 7 Years**
- Lifetime Savings of Going Solar: $34,698
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Find Cost Savings on Solar in Alaska
As a homeowner in Alaska, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.
Jump to Section:
- Cost of Solar Panels in Alaska
- Alaska Solar Incentives
- Alaska Installed Solar System Costs in 2022
- FAQ: Solar Panel Cost Alaska
Local Service
Average cost
Arctic Solar Ventures
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Outstanding customer service -
Great warranty coverage
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Includes battery installations
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Limited brands of solar equipment available
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Slightly limited service offerings
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No leases or PPAs
Outstanding customer service 
Limited brands of solar equipment available Services Offered
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Solar Panels
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Solar Batteries
Solar Panels 
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Alaska Solar
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Excellent reputation
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Outstanding customer service
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Includes battery installations
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Slightly limited service offerings
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Limited warranty coverage
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No leases or PPAs
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Solar Panels
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Solar Batteries
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Renewable Energy Systems of Alaska
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Expansive service area
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Great warranty coverage
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Offers products from leading manufacturers
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No leases or PPAs
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Less personalization than competitors offer
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Solar Panels
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Solar Batteries
Cost of Solar Panels in Alaska
The average cost of solar panels in Alaska is $2.41 per watt, which is well below the national average of $2.66 per watt. Using this figure, in Alaska, a typical 6-kilowatt solar system would cost $10,700 after claiming the 26% federal solar tax credit.
The size and per-watt cost of solar panels are defining components in determining the final cost of a solar energy system for your Alaska home whether you live in Anchorage, Fairbanks or Juneau. Many Alaska homeowners opt for a 6-kilowatt system, to offset the average monthly electric bill of about $125.1
Solar Panel System Installation Cost in Alaska
The size of your solar energy system is a critical factor in the final cost, but its significance extends beyond impacting the price. For homeowners who simply want to supplement their electricity, it may not be a big deal. However, for those who want to eliminate their electricity bills entirely, the size of the system is critical.
Below, we list the most common solar system sizes installed in Alaska and their associated costs before and after applying the federal tax credit.
| Size of Solar Panel System | Alaska Solar Panel Cost | Cost After Federal Tax Credit |
| 3 kW | $7,230 | $5,350 |
| 4 kW | $9,640 | $7,134 |
| 5 kW | $12,050 | $8,917 |
| 6 kW | $14,460 | $10,700 |
| 7 kW | $16,870 | $12,484 |
| 8 kW | $19,280 | $14,267 |
| 9 kW | $21,690 | $16,051 |
Ready to see the best solar companies in Alaska that consistently offer high-quality, affordable systems? Click here.
What Determines the Cost of Solar Panels in Alaska?
The overall cost of a solar energy system for your Alaska home will hinge on multiple factors. Three main categories contribute to the cost: the type of solar equipment used, the financing option you choose and the solar installation company that handles the project.
Solar Equipment
Like most products, solar panels and associated equipment come in varying levels of quality. Most solar providers offer a diverse range of solar panel brands to meet the needs of various homeowners and provide more options for customization. Typically, solar panels and inverters are available in ranging efficiencies, wattages, etc., which influence the final cost of the system.
For instance, consider a high-wattage, high-efficiency solar panel. It will generally be more expensive than lower-wattage, lower-efficiency options. However, many homeowners find the extra upfront cost is worth it in the long run, as you’ll have to purchase fewer of them to offset your energy consumption and they can save you more on your electric bills over time.
Homeowners with electricity-hungry appliances or electric vehicles often benefit from the higher-efficiency options. In addition, homeowners with limited installation space may benefit from the higher-efficiency panels as well, since fewer panels are required to meet their energy needs.
Solar Financing
Solar providers generally offer a few different financing options, which help them accommodate different budgets. Usually, these options include cash purchases, solar loans and solar leases.
An outright, upfront cash purchase is the most cost-effective of these three options. When you pay for the entire system upfront, you avoid accruing interest on a loan, meaning it’s more cost-effective in the long run. In addition, you can take advantage of various tax credits and other financial incentives, which you can’t do with a solar lease.
However, purchasing a system in cash isn’t feasible for many homeowners. If this is the case, a solar loan is the next best option. You can still utilize available tax credits and incentives, but you will likely accrue interest over the payback period, which drives the final cost.
Solar leases are usually the least cost-effective option for homeowners seeking a permanent solar solution. Since you don’t actually own the system, you don’t reap the benefits of ownership (tax credits, rebates, increased home value, etc.).
Solar Installation Company
Last but not least, the solar installation company you choose is also a major factor in the final price you pay for your solar energy system. As you browse through local providers, you’ll probably notice some price variations from one company to the next.
Increased costs are generally associated with either higher-quality equipment, more personalized service or higher overhead costs the company contends with. We recommend getting quotes from at least three installers and comparing them based not only on price, but also on value. The cheapest option is not always the best when it comes to solar.
Alaska Solar Incentives
Alaskan residents who invest in solar energy systems have a few solar incentives at their disposal. Although the state doesn’t offer any property tax exemptions or state tax credits, it offers excellent net metering policies. In addition, residents may also take advantage of the ITC, which is available to solar homeowners across the U.S.
Here’s a brief overview of incentives available to Alaska residents:
| Alaska Solar Incentive | How it Affects the Cost of Solar Panels in Alaska |
| Net Metering | Through net metering programs, any extra energy your solar energy system produces is sent to the grid in exchange from utility credits that you can use toward your next month’s bill. In Alaska, utility companies are required to offer these policies 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. |
| Federal Solar Tax Credit | This credit is called the solar investment tax credit (ITC), and it allows homeowners to claim a credit worth 26% of the installed price of their solar energy systems. The credit is set to drop to 22% in 2023 and, unless renewed, will be eliminated for residential systems in 2024. |
| Local Solar Rebates & Incentives | Local governments and utility companies may offer additional rebates for installing solar PV systems. |
Alaska Installed Solar System Costs in 2022 By Panel
Most home solar providers offer various solar photovoltaic panel brands, ranging in quality, cost and availability. The table below outlines the average costs for a few of the best solar panel brands on the market.
| Solar Panel Brand | Average Cost Per Watt ($-$$$$$) |
| LG Solar | $$$ |
| Canadian Solar | $$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
People Also Ask
EcoWatch FAQ: Solar Panel Cost Alaska
At EcoWatch, we get questions all the time from readers regarding energy costs and solar energy. Here are a few of the most common queries we get, along with our responses.
The average cost of solar panels in Alaska is $2.41 per watt, which is well below the national average of $2.66 per watt. Using this figure, in Alaska, a typical 6-kilowatt solar system would cost $10,700 after claiming the 26% federal solar tax credit.
Of course, these numbers may be skewed from what you pay for your system. Depending on factors like the kilowatt-hours of energy you use each month, solar provider, type of solar equipment and your roof configuration and orientation, your numbers may be higher or lower.
Yes, solar panels increase your home’s value. According to Zillow, homes with solar energy sell for roughly 4.1% more than those without.2 At the time of publication, the median home value in Alaska is $314,885, which means the added value is equivalent to an extra $12,910.3
The added value is only applicable if you own your renewable energy system and won’t apply if you lease it, since you won’t actually own the system. The increased value percentage may vary based on your particular location and market, but rooftop solar energy systems generally increase the value of your home by just over 4%.
When you switch to solar energy, you have a few options for paying for the system. Generally, you can buy the solar system outright via cash purchase or solar financing, or you could lease the system with a PPA or solar lease. Not all companies offer solar leases, but many do, so it’s something to keep in mind.
If it’s feasible, it’s always best to purchase your system. Buying and owning your system offers a variety of benefits that leasing doesn’t allow. For instance, you can take advantage of the federal solar tax credit, which can shave a considerable chunk off the overall total. In addition, your home’s value will increase due to the solar array addition.
You can also utilize local rebates and tax breaks when you buy the system. Unfortunately, Alaska doesn’t offer rebates or tax breaks specific to the state, but Alaska residents can still take advantage of exceptional net metering policies and the federal tax credit.
If you choose to lease your system, you can’t claim the federal tax credit and your home doesn’t gain any value as a result of the addition. However, since buying the system outright isn’t feasible for all homeowners, solar leasing is certainly an option. Residents living in a rental home may also decide that leasing makes more sense for their situation.
No, solar panels aren’t free in Alaska. If you see an advertisement for free panels, it’s probably a marketing tactic trying to get you to sign a lease or PPA. While a lease/PPA may be a suitable choice for some homeowners, it’s generally not a great investment.
So, if you see a sign boasting free panels, make sure you do your research to determine exactly what you would be getting yourself into. As the demand for solar energy has risen, dozens of less-than-stellar solar providers have popped up all over the U.S. offering leases. Ensure you familiarize yourself with the company, verifying that it is a reputable option before committing to a solar project.
Absolutely, your solar panel system can eliminate your energy bills. Alaska’s net metering policies are excellent, which works well in favor of homeowners switching to solar energy.
Of course, a few factors may impact how much you can save or if you can eliminate your energy bills. For example, you need an adequately sized system that can meet or exceed your energy needs. However, it’s possible to entirely eliminate your energy bills with your solar energy system and even go off-grid if you live in a rural part of Alaska.
Cost isn’t necessarily the most important consideration when purchasing solar panels. Many homeowners start their search with a specific priority or non-negotiable must-have in mind.
For example, one homeowner may want the best warranty available and may not be as concerned about the overall cost of their system as they are regarding the warranty coverage.
Or, on the other hand, another homeowner may want the most affordable option. For this particular homeowner, the cost may be the most important consideration. However, it isn’t always the most important factor for all homeowners.
