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.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/22/2022

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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:

  1. Cost of Solar Panels in Alaska
  2. Alaska Solar Incentives
  3. Alaska Installed Solar System Costs in 2022
  4. FAQ: Solar Panel Cost Alaska

 

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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 $$$

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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.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

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