Solar Panel Cost in Alaska (2023 Local Savings Guide)

In this EcoWatch guide on the cost of solar panels in Alaska, you’ll learn: 

  • How solar panel costs in Alaska compare to the U.S. average
  • What affects solar prices for Alaska residents
  • How much you can save by going solar in Alaska
  • What makes Alaska a good state for solar
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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 $10,122 after claiming the 30% 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 

Keep reading to learn more about solar costs and incentives in Alaska, or 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.

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Arctic Solar Ventures

Outstanding Local Installer

Local Service

EcoWatch rating

Average cost

Pros

  • Outstanding customer service
  • Great warranty coverage
  • Includes battery installations

Cons

  • Limited brands of solar equipment available
  • Slightly limited service offerings
  • No leases or PPAs
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Alaska Solar

Outstanding Local Installer

Local Service

EcoWatch rating

Average cost

Pros

  • Excellent reputation
  • Outstanding customer service
  • Includes battery installations

Cons

  • Slightly limited service offerings
  • Limited warranty coverage
  • No leases or PPAs
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Renewable Energy Systems of Alaska

Outstanding Local Installer

Local Service

EcoWatch rating

Average cost

Pros

  • Expansive service area
  • Great warranty coverage
  • Offers products from leading manufacturers

Cons

  • No leases or PPAs
  • Less personalization than competitors offer

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 30% Federal Tax Credit
3 kW $7,230 $5,061
4 kW $9,640 $6,748
5 kW $12,050 $8,435
6 kW $14,460 $10,122
7 kW $16,870 $11,809
8 kW $19,280 $13,496
9 kW $21,690 $15,183

Ready to see the best solar companies in Alaska that consistently offer high-quality, affordable systems? Click here.

See Also: See how much you can save by going solar with the EcoWatch Solar Calculator

What Determines the Cost of Solar Panels in Alaska?

Solar panel systems in Alaska are more affordable than they are in most other states, with an average cost of around $10,122 after the federal tax credit. Normal prices can fall within $5,000 to $6,000 on either side of this average, though. 

Below, we’ll discuss some of the primary cost factors that will determine what your solar panels will cost.

Solar Equipment

The solar equipment you install in your home is one of the predominant determining factors when it comes to system cost. There are two main reasons for this.

First, Alaska is the northernmost state, which means sunlight is relatively scarce and isn’t as intense as it is in other states. The Last Frontier experiences just 112 sunny days per year, on average, which is just over half the national average of 205. 

The lack of sun in AK demands high-efficiency solar panels, which are almost always more expensive than standard equipment. Consequently, most Alaskans will end up paying more for top-of-the-line equipment.

In many states, solar batteries are add-on products that are most useful for providing power through outages. In Alaska, solar batteries are a good option for some homeowners who want to maximize their energy savings. 

Net metering allows residents to overproduce energy and “bank” it with their utility company for later use. However, not all electric companies in AK buy back energy at the full retail rate, so batteries can help get the maximum benefit from overproduction. Solar batteries, however, will drive up the cost of your system.

house roof covered with solar panelsSolar Financing in Alaska 

Financing for solar projects is readily available in Alaska, but the payment option you choose will affect your total system price. Paying with cash means you’ll spend more up front for your panels, but you won’t pay interest, so you’ll end up saving money. Using a solar loan means a more affordable payment up front, but your all-in costs will be higher because of interest payments.

There are plenty of solar loan options in Alaska, although government-backed loan options are scarce. There is a Property Assessed Clean Energy (PACE) financing program, but it’s currently only available for commercial customers. 

However, low-income households can take advantage of affordable and accessible solar financing options available through a nonprofit called the Renewable Energy Alaska Project (REAP).

Alaska Solar Installation Company

Alaska is home to just five solar installers according to the Solar Energy Industries Association, and the one you choose will make a difference in terms of your overall system price.2 Since every installer charges different prices for installation labor and equipment, two companies installing the exact same equipment can come with wildly different prices.

The solar installers in AK can also vary in price based on the brands they offer. For example, Arctic Solar Ventures, one of the best solar companies in Alaska, only installs LG panels. Alaska Solar, another local company, only offers QCells panels. 

LG panels tend to be more expensive than QCells, so Arctic Solar Ventures will usually come at a higher price than Alaska Solar. This is not to say that one is better than the other, though, as these brands also differ in their efficiency, durability, warranty coverage and overall value.

Additional Considerations and Costs in Alaska

There are a few more things you’ll want to consider before committing to a solar installer in Alaska. We’ll include some information on these considerations below.

  • Permits: The State of Alaska requires building permits for all solar panel installations. Your installer should handle this process, but if you choose to go the DIY route, you might need to pull permits for yourself. Either way, this is a crucial step in going solar in AK.
  • Licenses: Every solar installer in Alaska must be registered with the state as a licensed electrician. You should always make sure your installer is properly licensed before singing any contracts for service.
  • Warranties: Solar warranties help protect your investment and ensure that your system continues functioning as intended for many years to come. Warranties usually cover physical damage, performance or the labor for the installation. The best warranties cover all three.
  • HOAs: Alaska currently doesn’t have any laws regarding solar rights. Homeowners’ associations can prevent you from installing solar panels, so you should get permission before moving forward with the work.
  • Environmental zoning: The zoning laws in Alaska are quite lax when it comes to solar panel systems, so it’s unlikely that you’ll run into any issues with the process.

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:

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 30% of the installed price of their solar energy systems. 
Local Solar Rebates & Incentives Local governments and utility companies may offer additional rebates for installing solar PV systems.

The Best Solar Panel Brands Available in Alaska

As we mentioned above, the solar panels you choose to install in Alaska can have a significant impact on your overall system price. 

In the table below, we’ll include some average pricing for the top solar panel brands available in Alaska to help you decide which ones are likely to be available within your budget.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

Want to know what size solar system you need in AK and what it will cost? Select one of our top providers below, and we’ll have a vetted, reliable solar installer provide you with a customized estimate.

Read More About Going Solar 

FAQs: Solar Panel Cost Alaska

At EcoWatch, we get questions all the time from readers regarding energy costs and solar energy. 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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Article author
Karsten is an editor 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.
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Expert reviewer
Melissa is an avid writer, scuba diver, backpacker and all-around outdoor enthusiast. She graduated from the University of Florida with degrees in journalism and sustainability studies. Before joining EcoWatch, Melissa worked as the managing editor of Scuba Diving magazine and the communications manager of The Ocean Agency, a nonprofit that’s featured in the Emmy award-winning documentary Chasing Coral.

Comparing authorized solar partners

EcoWatch rating
Average cost
Pros
Cons
BBB Rating
Year founded
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Brands of Solar Equipment Offered
Warranty Coverage
  • 4.5
    • Outstanding customer service
    • Great warranty coverage
    • Includes battery installations
    • Limited brands of solar equipment available
    • Slightly limited service offerings
    • No leases or PPAs
    A+
    Outstanding Local Installer

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