In Alaska, a typical residential solar panel system costs $8,435 to $24,100, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Alaska homeowners to buy solar panels.
Jump to insightAlaska residents can get the retail rate when they sell excess solar power to the local grid.
Jump to insightResidential solar panel incentives in Alaska
The federal solar investment tax credit (ITC) is the biggest factor reducing the cost of going solar in Alaska. If you install a residential solar panel system by the end of 2032, you will receive a federal income tax credit equal to 30% of the system's total cost, which includes equipment, labor and permits.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
Federal solar tax credit expires at the end of 2025
The ITC is now set to expire at the end of the year, much earlier than previously scheduled. The credit was expected to drop gradually, then fully expire in 2035 — but those future step-downs have been eliminated under the “One Big Beautiful Bill,” signed in July of 2025. This means you have until Dec. 31, 2025, to install and pay for a system to qualify for the 30% credit.
Property tax exemption
In some areas, homeowners can get a property tax exemption when they go solar. A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t cause an increase in your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home.
Golden Valley Electric Association also has the Sustainable Natural Alternative Power (SNAP) program, which is a performance-based incentive for going solar.
- Property tax exemption: This amount is set by the local government, so how much of an exemption you get may vary depending on where you live in Alaska.
- SNAP program: Amounts are determined by the kilowatt-hour (kWh) produced and contributions from supporting members. The maximum incentive amount is $1.50 per kWh. Systems of 25 kilowatts (kW) or less are eligible.
Additional solar incentives in Alaska
Check the DSIRE for the most comprehensive source of information about solar incentives and policies in Alaska.
| Incentive type | Amount | Eligible solar equipment | Applicable sectors | Administrator | |
|---|---|---|---|---|---|
| Power Project Loan Fund | Loan program | Loans over $5 million require legislative approval | Solar water heat, solar space heat, solar thermal electric, solar photovoltaics | Local government, municipal utilities, cooperative utilities | Alaska Industrial Development and Export Authority |
| Renewable Energy Grant | Grant program | Varies | Solar water heat, solar photovoltaics, fuel cells using renewable fuels | Investor-owned utility, local government, municipal utilities, cooperative utilities, schools, state government, tribal government, retail supplier | Alaska Energy Authority |
What to know about net metering in Alaska
Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. Alaska allows net metering for renewable energy systems up to 25 kilowatts. Residents get paid for excess energy based on the utility's fuel and operation cost savings. Utilities must buy at least 1.5% of their power from net-metered customers, with Homer Electric Association voluntarily increasing this to 3%. You should contact your utility company for details and enrollment information to join a net metering program.
In Alaska, any solar energy system intended for participation in a net energy metering program must receive explicit approval from the utility company providing service to that location. If your residence is within a community governed by a homeowners association (HOA), you may be obligated to obtain prior authorization from the HOA before installing a solar energy system.
How much are solar panels in Alaska?
After considering the federal solar tax credit, solar panel costs in solar panel costs in Alaska typically range from $8,435 to $16,870.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Alaska is 5.1 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.
Average solar cost by system size in Alaska
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $12,050 | $14,460 | $16,870 | $19,280 | $21,690 | $24,100 |
| After federal tax credit | $8,435 | $10,122 | $11,809 | $13,496 | $15,183 | $16,870 |
Solar resources in Alaska
Project Sunroof is a great way to estimate rooftop solar potential in Alaska. Below are some additional resources.
- Alaska Energy Authority
- Alaska Center for Energy and Power Solar Technologies Program
- Renewable Energy Alaska Project
- Renewable Energy Systems of Alaska
Find solar companies in Alaska
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Alaska’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Tesla Energy | Learn More | 2.2 |  | Cash, loan and lease | 2015 |
 ShopSolar | Learn More | 4.7 |  | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Alaska?
There are no legitimate programs for totally free solar panels in Alaska that we are aware of.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option of leasing solar equipment.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Alaska?
On average, Alaska homeowners with solar panels avoid $29,737 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Alaska, solar panels usually pay for themselves within 12.6 years.
» EXPLORE: Where solar savings go the furthest
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. It’s also smart to upgrade any old, inefficient appliances first. Reducing your electrical loads now means you can get a smaller system, which will be cheaper.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels again. This will cost around $5,000 for a 19-panel setup.
Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
Is my HOA allowed to restrict solar panels?
It’s possible your homeowners association may place restrictions on installing solar panels. There are no laws in Alaska that prevent HOAs from regulating solar installation.
What has Alaska’s investment in solar been so far?
Total solar investments in the state amount to $68 million, according to the Solar Energy Industries Association.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, particularly for Alaskans.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Alaska Programs.” Accessed March 29, 2024.
- Solar Energy Industries Association, "Alaska Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Alaska?" Accessed March 29, 2024.
- Renewable Energy Alaska Project, “Net Metering.” Accessed July 8, 2024.
