:max_bytes(150000):strip_icc()/GettyImages-1048512692-823ed6dfcccd475e82860f6b9d583d0a.jpg "Solar power in Alaska? Let's see if it's worth it here")
Alaska may be known for its long winter nights, but it's also the land of the midnight sun, and solar panels can help residents cut some of the country's highest energy bills.
In 2022, The Last Frontier ranked 49th in the nation for solar capacity, according to the Solar Energy Industries Association. Solar panels to consider.
"The question in Alaska was, 'Well, what good is solar power if it's pretty dark for three months of the year?'" Rose said in a phone call. "It made sense when the price of solar was much higher than it is now, but Alaska has good solar resources during the seven or eight months of the year when [someone] is much more likely to consider going solar." .
The amount of sunlight in Alaska varies drastically between winter and summer, which means that solar panels will not be the answer to all of your energy needs. However, they will help you reduce your monthly energy bills.
However, switching to solar power may not be right for you. Your location and relationship with the network are important. Here's a breakdown of what you need to know about solar power in Alaska so you can make the best decision for your home.
Your location matters when choosing solar power in Alaska
Where you are in Alaska affects how you get electricity and the convenience of solar panels. Simply put, Alaskans live inside or outside of the Railroad Belt.
The Railbelt is an electrical grid that stretches from Fairbanks through Anchorage to the Kenai Peninsula. It is home to most of Alaska's population and consumes nearly 80% of the state's electricity. Six electricity companies operate in the Railway Ring, each with its own generation sources. Residents who want to install solar panels on their homes can participate in the Net Metering program, which allows them to sell excess solar energy on credit to the grid.
Outside of the rail belt, most of the state's remote communities rely on small, individual grids, many of which run on diesel generators. According to an analysis by the Energy Information Administration, the cost of transporting diesel means that the cost of electricity in rural rail areas can be three to five times higher than in urban areas. Due to these high costs, the government provides financial assistance to customers of rural electric utilities through a program to reimburse the cost of electricity.
High costs also encourage innovation, Rose said. "We've seen how many of these remote communities are interested in supplementing their diesel grid with renewable energy."
The transition to solar energy looks different in rural areas than in the rail belt areas. This is often done at the community level, meaning their systems are significantly larger than a single residential system. Rose said there isn't a lot of data on residential roof systems in these remote locations because utility companies don't encourage them.
“There is no net metering in rural Alaska because it would be much more difficult for small grids to get electricity from rooftop consumers. If a small town utility loses some customers and also has to pay [via net metering], that's going to be a real problem for their bottom line," Rose said.
However, it is not uncommon for Alaskans living in rural areas to invest in solar panels for their homes. There are other barriers, such as higher transportation and labor costs, and lack of access to clean meters, but solar panels in rural areas can help residents offset diesel use in the spring and summer months.
The cost of solar energy in Alaska
Installing a solar system is a big investment, but the cost will vary. Costs are measured in dollars per watt, which means the bigger your system, the more expensive it will be. However, the cost of your solar system depends on more than just the size of the system and the slope of the roof. Living in a rural area affects the cost and your eligibility for net metering.
According to Rose, the average system size in Alaskan cities is between 4 and 6 kW. According to the Lawrence Berkeley National Laboratory, the average cost of an 8.6 kW system is between $31,558 and $3.67 per watt.
Average cost of solar panels by country
| | Installation power (kW) | price per watt | installed cost |
|---|---|---|---|
| at the national level | 8.6 | $3.67 | $31,558 |
Alaska's low solar usage means there isn't much information about the exact cost of installing solar power in The Last Frontier. However, based on research by academic experts at the University of Alaska Fairbanks and our conversations with other experts, the cost can range from $10,000 to $30,000.
According to a 2019 report from the Alaska Power and Energy Center, urban installations in Alaska range from $1.25 to $3.50 per watt, and remote installations from $2.20 to $4.60 per watt.
The cost of installing solar panels is typically higher in rural Alaska due to higher labor and transportation costs.
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How to pay for solar panels
There are many options when it comes to financing your solar system. You can pay cash up front, take advantage of solar leases and PPAs, apply for a loan, or use the equity in your home.
- Cash Payment : If you can afford it, you should pay cash for your solar system. You don't have to pay any loan fees or interest charges, and you don't need good credit. If solar panels aren't in your budget right now, you can take advantage of higher interest rates by saving for future investments in a high-yield savings account.
- Solar Loans – Some solar panel sellers work with credit unions or other financial institutions to offer solar loans to their customers. Solar loans from your installer may have a higher rate than loans from a bank or financial institution. Your credit score can also affect your eligibility.
- Home Equity Loan or Line of Credit (HELOC) – You can use your home equity to finance your solar installation with a Home Equity Loan or HELOC. Home equity loans and HELOCs allow you to make improvements to your home, such as: B. solar panels without affecting your underlying mortgage. However, there is a risk that you will lose your home if you do not make the payments.
- Lease or PPA – Some solar providers allow you to enter into a lease or PPA, usually at a lower rate than you pay for utilities. You will not own your solar panels. Instead, you pay for the equipment (rented) or the electricity generated by your system (under a sales contract).
Alaska Solar Panel Incentives or Discounts
The cost of solar power has dropped significantly in recent years, but it's still a great investment no matter where you live. Alaskans can take advantage of some government incentives and community projects, if any, to make solar energy more accessible and affordable.
The federal Clean Energy Home Credit is one of Alaska's best incentives for solar energy enthusiasts and was recently extended through 2034 under the Inflation Suppression Act. With this credit, you can deduct 30% of the cost of your solar system, including installation costs, from your federal tax bill.
Installing solar panels can add value to your home. This also means your property taxes. But some Alaskan cities don't raise property taxes if you add solar panels. Contact your local government to find out.
In 2010, the Alaska Regulation Commission (PDF) adopted net metering rules that allow Railbelt residents to sell excess solar power for credits equal to the wholesale rate, which is less than the retail rate (what you pay for electricity). Currently, the Alaska metering system operates on a monthly basis.
"The monthly net metering doesn't generate as much solar power as the yearly system, especially in a seasonal place like Alaska," Rose said. "My system produces six or seven times the electricity I used in June, but I can't retail those credits. Instead, they offset avoided expenses that can help cover my winter bills."
The Solarize program helps communities purchase solar panels in bulk and receive deep discounts. According to the Alaska Center, the conservation agency coordinating the effort, rebates can range from 10 to 17 percent before the federal tax credit is applied.
While you can find a full list of Alaska incentives on the government's renewable energy and efficiency database, here are a few important ones to look for:
Solar Incentives in Alaska
| the program | Description |
|---|---|
| pure measure | Since 2010, the Alaska Net Metering Law has required some utilities to provide net metering. If your solar system is less than 25 kW, you can sell the excess solar power to a credit service company. |
| Property tax exemption (variable) | Alaska law allows municipalities to generate their own property tax credits for residential renewable energy systems, which means you won't see an increase in property taxes if you install solar panels. However, not all municipalities offer this exemption, so be sure to check if it is possible where you live. |
| Clean Energy Home Loan | When you buy solar panels, you can get a 30% tax credit with the Federal Clean Energy Home Credit. |
| Alaska Solarization Campaigns | The Solarize program allows communities to purchase solar panels as a group and receive panel discounts and installation pricing. This program launched in Oregon and is now available in Anchorage, Fairbanks, and Mat-Sun. |
Alaska Solar Panel Company
The Solar Energy Manufacturers Association reports only five solar panel installers in Alaska.
When choosing a solar provider, it's important to shop around to find one that meets all of your needs.
Some things to consider are whether or not the company offers long-term warranties and customer service ratings and the products and services it offers. Especially in Alaska, make sure your installer offers high-performance panels so you can enjoy the sun. High-performance panels help you perform in low-light conditions.
Below is a list of solar companies to consider based on our research, expert opinion, and CNET's Best Solar Companies Rankings .
Alaska is sunny
Anchorage-based Alaska Solar installs on-grid and off-grid solar and battery systems. Although Alaska Solar offers only one brand of solar panels, Qcells, the panels have an average efficiency rating (20.6%) suitable for low light conditions. However, Alaska Solar has limited financing options (no leases or PPAs) and only offers an OEM warranty.
Arctic Solar Companies
Founded in 2015, Arctic Solar Ventures installs grid-tied solar systems and solar panels in and around Anchorage. The company specializes in residential solar power systems and solid-state battery systems. ASV mainly installs REC solar panels, but the panels have a high efficiency of 22.3%. ASV offers a 30-year insurance guarantee. While ASV does not offer energy lease or purchase agreements, you can take advantage of its loan options through Clean Energy Credit Union and Mosaic. ASV does not install off-grid solar systems.
Alaska Renewable Energy Systems
Since 2006, Alaska Renewable Energy Systems has implemented a variety of renewable energy systems, including on-grid and off-grid solar systems, as well as solar panels. RES serves Anchorage, Fairbanks, Wasilla and surrounding areas. The company offers a range of modules, including Trina and Canadian Solar, both with above-average efficiency ratings. RES offers strong warranties (50 years for equipment and 30 years for electricity) but has limited financing options (no lease or sales contracts).
solar energy solar energy
SunPower Solar has operated in all 50 states since 1985. The company manufactures private label products such as Maxeon solar panels and SunVault solar panels. The modules have the highest efficiency in this group - 22.8% - but they are also the most expensive. You can buy or lease panels from SunPower or enter into a power purchase agreement. SunPower offers a 25-year warranty on the entire system.
Installation factors to consider
Solar panels may not be suitable for your home. Here are some notes:
- No sun in the winter months - Solar panels still work at very low temperatures, and perhaps better. However, due to Alaska's snow and long winter nights, your panels will produce less (if any) electricity during the winter. Therefore, your solar panels are probably not a year-round solution.
- High efficiency solar panels . Because Alaska has fewer sunny days (121 days per year, compared to the national average of 205), experts recommend choosing high-efficiency panels to maximize the performance of your solar system. Solar panel efficiency measures how well the panel converts sunlight into energy. High-end panels have an efficiency of 20% or more. While high-efficiency panels can add to the initial cost of your solar system, they can add to your savings in the long run.
- Energy Storage System – While solar panels add value to any solar system, they are especially useful in off-grid rural areas. Since rural Alaskans are unlikely to qualify for net metering, solar storage systems allow for the storage and use of excess solar energy. Solar panels can be an expensive investment ranging from $5,000 to $20,000. However, you can claim a 30% federal tax on this.
- Roof and eaves condition – Before installing solar panels, make sure your roof is in good condition. A reputable company will check the condition and slope of your roof prior to installation. If your eaves aren't adequate for Alaska's latitude, you might consider installing in-ground solar panels if you have the space.
- Do-It-Yourself Installation – Some Alaskans, especially those in rural areas, are considering installing their own solar systems. Self-powered solar panels are not meant to be connected to the grid, so this method is more common in remote areas. Self-installation of solar panels requires at least some knowledge in the field of electrical work. While it may be cheaper to install your solar system yourself, you lose out on the benefits of having a professional install it.
Common questions
Каков средний размер Solnechnoi sistemy na Alaska?
In urban areas, the average power of the system is around 5 kW. This number is much higher in remote areas that opt for general-scale solar systems.
How much sun is there in Alaska?
On average, 121 sunny days per year. In some parts of Alaska, the sun shines most of the day, if not all day during the summer months.
Do you need to remove snow from my solar modules?
Snow in Alaska inevitably falls on your solar panels. Light snow is likely to melt quickly, but heavy snow can put too much stress on the solar cells. Before you order snow removal from your panels, be sure to check with your supplier to see if they can help you. You want to make sure that your warranty is not voided.
