Why Go Solar in the State of Alaska?
Alaska is one of the most unlikely states where one can expect solar energy can work. It is perceived as an impractical venture. Contradicting the perception, Alaska is the home of some of the most inspiring solar farms, such as Willow solar farm, situated approximately 50 miles north of Anchorage, Alaska proving that solar can work in the most unexpected cold and northerly climates. Alaska’s sunshine and long summer days available in the summer make it ideal for harnessing solar power. You can easily compare the amount of sun Alaska gets with Germany, the renewable energy leader globally. But even with the abundance of solar, Alaska is ranked 50th out of the states for a total installed solar capacity. According to the Solar Foundation, we have a cumulative installed solar capacity of 4 MW, and only 0.04% of the state’s electricity is generated from solar. The state renewable energy sectors hold enormous potential and opportunities for growth.
Alaska has ambitious renewable energy plans. The state plans to generate 50% of its electricity from renewable and alternative energy sources by 2025. The state has gone the extra mile to support and promote solar energy production and consumption. Using different incentives, Alaska aims to make solar more attractive and affordable. The incentives include Federal Solar Tax Credit, net metering, Alaska State Energy Rebates, Alaska State Energy Tax Credits, Alaska Solar Power Performance Payments (Performance-Based Incentives), Alaska Property, and Alaska Sales Tax Exemptions for Energy.
Alaska solar panel system can make you energy independent. Moreover, you can save a lot of cash over your lifetime. The state has created a dedicated effort to invest in solar, an easy choice for energy-conscious consumers.
National solar ranking
49th (47th in 2020)
Solar Installed (MW)
Solar installed to power
Percentage of State’s Electricity from Solar
Total Solar Investment in State
Prices have fallen
45% over the last 5 years
Growth Projection and Ranking
34 MW over the next 5 years (ranks 51st)
Number Of Installations
Is going solar worth in Alaska?
The Alaska solar panel system installation is approximately $ 10678, which makes $2.041 per watt. The average commercial electricity rate in Alaska is 14.93¢/kWh, which is 47.97% greater than the national average commercial rate of 10.09¢/kWh. The Alaska DC solar panel user can enjoy the return on investment in 5-7 years.
Many users prefer cash purchase pay for solar, which delivers a long-term value to the customers. The Alaska solar panels prices fell 45% over the last 5 years. The users can opt for different financing options to afford installations, including solar leases, PPAs, and solar loans.
What solar panels should I install in Alaska?
The user can customize their solar panels according to their needs and demands. They can choose the batteries and aesthetic of the installation. The customizability increases the importance of understanding the various factors that can impact the solar panel’s performance. The solar panel with warranties and premium performance is more expensive. On the other hand, an in-depth analysis is required if high-efficiency solar panels and warranties can fit your needs.
How much energy can users generate in Alaska?
Your solar panel performance depends on the quality and quantity of sunlight directly hitting your solar panel. Alaska has 126 sunny days annually. The state is known for its rain, sleet, hail that falls to the ground, and snow. The other factors which can have an impact on the Alaska solar panel system include the following:
- Panel orientation
- Panel angle
Alaska Weather Highlights
The July high is around 67 degrees
The January low is 9
Averages 17 inches of rain a year
Averages 79 inches of snow a year
Rebates and incentives
The federal Investment Tax Credit has been one of the most impactful and reliable incentives for solar across the U.S. the user can deduct 26% of the total system cost from his/her federal taxes. This good incentive lasts until the end of 2022, and from 2023 the tax credit amount steps will decrease to 22%. The federal ITC is eliminated for residential solar installations after 2023, but commercial solar energy system owners can still deduct 10% of a retail solar system cost from their taxes beyond 2023. Apart from the federal ITC, Alaska offer additional incentives for going solar, including the following:
Federal Solar Investment Tax Credit
26% federal solar tax credit is available for home solar systems installed by December 31, 2022
Varies depending on market value
Golden Valley Electric Association Sustainable Natural Alternative Power (SNAP) Program
The excess energy produced a SNAP Plus members are compensated at the utility’s non-firm rate. In addition to that the member receives yearly rebate payment from the SNAP fund.
Property Tax Exemption for Renewable Energy Systems (Local Option)
Varies depending on market value