Cost of Solar Panels in Alaska (2026)

How much do solar panels cost in Alaska?

Residential solar panel installations generally range $12,050 to $24,100 in Alaska. Adding a storage battery can add $7,000 to $18,000 to your overall solar costs.

The size of your solar panel system is another big cost factor. The average size of a solar system in Alaska is 5.1 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Here is how to estimate what size is right for you: Find the electricity you used in the last year in kilowatt-hours (kWh). This information is in your electric bill's online dashboard. Then, divide your annual kWh by 1,200 to find the necessary system size.

Solar panel costs by system size in Alaska

Are solar panels worth it in Alaska?

Despite the long, dark winters, there’s enough sunlight for solar panels to generate plenty of energy in much of Alaska. Homeowners can save a lot over time, thanks to the state’s high electricity costs. Over 25 years, homeowners with solar panels avoid $29,737 in utility costs on average. For others, the environmental benefits alone are enough to make going solar worth it in Alaska.

Seasonal variation is still a potential disadvantage. Solar production can vary significantly throughout the year due to the changing seasons.

This means you might rely more on the grid or storage batteries during these periods. Solar batteries add to the overall cost of the solar system, potentially doubling the total cost. A battery can help you rely less on the grid and is essential for most off-grid systems.

Solar installations are growing in some of Alaska’s more populated areas, including Southcentral Alaska and the Mat-Su, as residents look for ways to manage high and potentially rising electricity costs.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Alaska

How much your solar system costs depends on the size of your system, the quality of your panels, the company you choose to go with, permit costs, the condition of your roof and more. Here are some things to consider.

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. You’ll hear installers talk about how “efficient” their panels are.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, life span, brand and other factors. Solar batteries typically cost $7,000 and $18,000, though some cost $30,000 or more.

• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Invetter costs usually range from $1,000 to $3,000.

• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a stand-alone system for $80 to $400.

Condition of your roof

Your roof can add to the costs of your solar system in more ways than one. You’ll need to get your roof inspected, which is an added cost. If your roof needs to be repaired or replaced, that increases your overall cost of going solar.

Solar panels should last 25 to 30 years, so your roof needs to last just as long. Otherwise, you’ll pay even more money to remove the panels, fix your roof and reinstall them. Avoid the extra costs and frustrations by having your roof ready for solar.

» SHOULD YOU: Replace your roof before going solar?

Other cost factors

Various other costs can add to the price of your solar energy system:

• Labor: Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the DIY route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

• Permits: Most towns require permits before you can install solar panels. These costs can be low in some towns and reach hundreds of dollars in others.

• Maintenance: There’s not much maintenance for solar panels. You may run into some added costs for potential repair and periodic cleaning, though.

Solar incentives in Alaska

Alaska doesn’t offer many statewide solar incentives, but homeowners may still save through net metering, local property tax breaks and financing options.

Some Alaska communities offer property tax exemptions for solar. This can keep the added value of your system from increasing your property tax bill.

The amount depends on where you live.

Other state programs mainly support larger community, utility or public-sector renewable energy projects rather than typical residential solar installations.

» MORE: Solar incentives in Alaska

How can I pay for solar panels in Alaska?

Solar financing and leasing programs make the upfront costs of solar more manageable.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

How to save money on solar panels in Alaska

You can lease a system with lower upfront costs. However, you won’t be eligible for the federal tax credit. Here are some other tips to maximize your savings on solar panels in Alaska:

• Compare quotes: Get quotes from at least three or four different solar companies in Alaska. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting the company first.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.

» MORE: Why are solar panels so expensive?

Compare solar installation companies in Alaska

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in top solar companies in Alaska.

FAQ

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Alaska homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.