How Much Do Solar Panels Cost in Alaska?

Have you ever considered installing solar panels to harness Alaska‘s long summer daylight hours? With some of the highest electricity rates in the U.S., solar can save the average Alaska homeowner over $1,500 per year!

But with our cold, dark winters and remote location, you might be wondering if solar power is truly affordable and realistic even this far north. Well, I‘ve dug into the numbers, incentives and top local installers to give you a full picture of what solar will cost for a typical home in Alaska. Read on to learn if you could benefit from ditching high electric bills for cheap, renewable solar energy.

Why Solar in Alaska?

I know what you might be thinking…Alaska ranks dead last out of 50 states for annual solar resources. And you‘d be right! But despite our cold climate and winter darkness, solar panels can still provide clean, reliable energy here for much of the year.

Here‘s why solar is worth consideration, even for the most skeptical Alaskans:

• We pay nearly double the national average for electricity
• Summer days provide plentiful sunlight – especially in southern regions
• State/federal incentives help reduce solar costs

Take a look at how our expensive grid power costs stack up:

With such high energy burdens, solar panels can provide welcome savings! And thanks to long summer days, correctly sized systems can produce enough surplus power to even last through the darker winter.

Okay, hopefully I‘ve convinced you that solar deserves a fair shake even in the legendary Alaskan winters. 😄 Now, let‘s look at what it will realistically cost.

Calculating Your Solar Needs

Every home‘s solar array size and production potential is different. To determine what system you‘ll need and what it will produce, we‘ll have to crunch some numbers:

1. Average Peak Sunlight Hours

This represents the maximum daily direct sunlight available for solar absorption in your area. For the entire state, Alaska only averages 3.99 peak sunlight hours per day.

2. Solar Panel Rating

The wattage indicates how much direct sunlight is converted to usable electricity by the solar panels (typically 100W to 400W per panel).

3. Alaska‘s Average Electricity Usage

The typical Alaska household uses 552kWh per month. To find the daily average, we divide by 30 days:

552kWh / 30 days = 18.4 kWh per day

4. Calculate Required Solar Array Size

Now we calculate the solar array wattage needed to produce your average daily usage:

• Alaska Daily Electric Use: 18.4 kWh
• Peak Sun Hours: 3.99
• 18.4 kWh / 3.99 hours = 4.6 kW solar array size

Since solar panels are rated in watts, you‘d need a 4,600W (or 4.6kW) system to cover your total daily electricity requirements in Alaska.

Below I‘ve mapped out what solar array size you‘d need in different cities based on their sunlight hours and your energy use:

Cost per Watt in Alaska

Based on installer data for 2021, solar panels in Alaska average $2.41 per watt installed. This is lower than the national average of $3.00 per watt.

For a typical 6kW residential solar system, installation costs about $14,460 in Alaska.

Of course panel types, brands, accessories and labor can all impact actual pricing. And federal/state/local incentives helps reduce out-of-pocket costs. We‘ll dig more into both below.

What Factors Impact Solar Costs?

While Alaska‘s statewide average gives us a good baseline, several factors cause solar prices to vary drastically by region and home. Especially the:

• Type of solar panels
• System size
• Installation quality

Let‘s look at how these aspects impact real pricing.

Solar Panel Types

Today most residential panels are either monocrystalline or polycrystalline silicon:

• Monocrystalline – Most efficient use of space and sunlight. But costs $$ more.
• Polycrystalline – Lower space efficiency but cheaper per watt.

You can expect to pay $3 or more per watt for premium efficiency monocrystalline solar panels. While budget polycrystalline panels fall closer to $2 per watt or less when professionally installed.

System Size

Larger solar arrays typically cost less per watt since wholesalers offer volume discounts. Let‘s compare average pricing across system sizes:

So while your overall spending rises for bigger systems, your per unit costs decrease.

Installation Quality

The most important (and most overlooked) factor is the experience level of your installer. True solar experts take the long view in designing and building out systems.

The right provider will:

• Accurately size systems based on usage patterns and sunlight availability
• Use premium materials built to withstand Alaska weather
• Back work with 20-25 year labor/production guarantees

Industry credentials like NABCEP certification help. But nothing beats 3rd party reviews and years in business when selecting a top quality outfit.

I always recommend getting quotes from 3-4 of the most reputable local companies before deciding. Comparing these key factors across bids helps you identify the optimal value/quality ratio for your home.

Okay, now that you know what makes Alaska solar affordable or expensive, let‘s look at real world cost examples…

2023 Case Study: 6kW Solar Array

Let‘s calculate the costs and long-term savings expectations for a common 6,000 watt solar setup.

For this exercise, we‘ll assume:

• Premium monocrystalline solar panels
• Racking for snowy rooftops
• SunPower/Enphase equipment
• Battery backup for dark winter days
• Installed by a top reviewed Anchorage company

Upfront Solar Costs:

• 6kW x $3.00 per watt = $18,000
• Federal tax credit = -$5,400
• Out-of-pocket cost = $12,600

Electricity Savings:

• Previous utility costs = $1,537 per year
• Solar production = 6,564 kWh annually
• Year 1 savings = $1,526

Breakeven timeline:

• Initial investment: $12,600
• Yearly savings: $1,526
• Breaks even in 8 years

So while solar requires significant upfront investment, you earn back your money in electricity savings – then keep earning over 20 more years!

And this example doesn‘t even account for extra savings from state solar incentives…

Solar Incentives in Alaska

State and federal incentive programs aim to make renewable energy affordable. Here are the current solar rebates and tax breaks for Alaska homes:

Federal Solar Tax Credit

The federal solar tax credit returns 30% of your system costs via a tax refund. For our $18k system above, this deduction saves $5,400!

While this popular credit is decreasing each year, it remains at 30% for systems installed through the end of 2023.

State Solar Incentives

The Alaska legislature offers additional renewable energy incentives to residents including:

• Personal tax deduction up to $10k for solar installations.
• Solar PV Rebate Program – apply for a one-time rebate up to $10k per home.
• Net metering – get credit or reimbursement from the utility for excess solar electricity sent back to the grid.

Check the DSIRE database for a full list of Alaska solar programs, deadlines, guidelines and application forms.

When combined with the outstanding federal credit, Alaska homeowners can offset 50% or more of their total solar installation costs.

Top Alaska Solar Installers

While Alaska‘s population is small and remote, reputable solar providers are expanding operations to serve major cities across the state.

I recommend starting your search by requesting quotes from these top rated local installers:

• Arctic Solar Ventures (Anchorage)
• Solar Systems of Alaska (Fairbanks)
• Solartricity (Juneau)

Comparing bid pricing, system components, warranties and installer experience will give you confidence in maximizing long-term value. Every home situation is different, so conduct your due diligence before committing!

Okay my friend, I hope this walkthrough gives you clarity on what solar will realistically cost based on your own situation in Alaska. If you have any other questions, don‘t hesitate to ask!

And for more guidance on reducing your Alaska energy costs, check out my guides on picking the top solar installer in your region and calculating the ROI on battery storage.

Stay warm and keep seeking the sun!