Greetings from a fellow Alaskan! If you‘ve noticed your electricity bills spiking painfully high as energy prices stay volatile, adding solar panels could be an excellent move for weathering both winter darkness and uncertain times.
I‘ve put solar on my own off-grid cabin, so I‘ll break down everything you need to know about costs in The Last Frontier. With the right system sized for Alaska‘s long winters, solar can pay off in under 10 years AND provide the reassurance of power whenever you need it.
Why Alaska Needs Solar
From frigid Fairbanks to stormy Aleutian islands, many Alaska natives opt to live off-grid out of preference or necessity. Even on established grids, our vast and remote infrastructure leaves statewide power networks vulnerable to disruption. Solar panels combined with batteries or generators are proven resilience tools, literally brightening the longest nights while reducing dependence on distant utilities.
When the next big storm or quake inevitably strikes, decentralized community solar allows towns to bounce back quicker. And even everyday, producing your own power offsets the Levittation-esque rates charged by utilities that think they have us over a barrel.
So while the lower 48 maps show Alaska tinted dark red as poor solar territory, the economic and practical arguments say otherwise! Let‘s break down the numbers…
Average Alaska Solar Panel Cost per Watt
Over the past 5 years, installed costs for complete solar arrays in AK have fallen from $3.20 down to today‘s average of $2.41 per watt:
| Year | Average Cost per Watt |
|---|---|
| 2018 | $3.20 |
| 2019 | $2.87 |
| 2020 | $2.58 |
| 2021 | $2.49 |
| 2022 | $2.41 |
And while permissions, transport and labor remain pricier challenges for going solar here, bulk discounts still apply as system sizes grow:
| System Size | Average Price |
|---|---|
| 2 kilowatts | $5,500 |
| 4 kilowatts | $10,650 |
| 6 kilowatts | $14,460 |
| 8 kilowatts | $17,850 |
| 10 kilowatts | $20,550 |
Compared to paying over $0.20 per kWh for utility electricity, a properly sized array cuts your bills for the system‘s 20-25 year lifespan. Alaska‘s cold and dark are surmountable! Onward sunward…
How Much Solar Do You Need?
With winter solar production way down compared to summer, Alaska systems must be substantially oversized to meet year-round needs.
For a household using the statewide average 522 kWh monthly, here‘s a month-by-month usage chart:
You can see how winter usage is 2-3X higher than summer‘s extended daylight offsets heating and lighting loads.
An appropriately sized 7.2 kW system for this home would break down as:
- Average Daily Use: 17.4 kWh
- Peak Sun Hours: 3.99
- Req‘d Panel Output: 17.4 / 3.99 = 4.36 kW
- Oversized System: 7.2 kW
This surplus summer capacity ensures enough winter productivity to prevent scary utility bills.
Top Alaska Solar Installers
Rather than big national chains, I recommend Alaska-based solar pros for designing and installing panels tough enough to handle our notorious weather. Here are the top provider options around the state:
| Company | Locations Served | Years in Business | Rating | Price for 6 kW System |
|---|---|---|---|---|
| Arctic Sun | Statewide | 10 Years | A+ BBB | $13,500 |
| Remote Power | Interior & North | 20 Years | 5 Stars | $14,800 |
| Renewable Energy Systems | Anchorage / Mat-Su | 3 Years | A+ ContractorCheck | $12,900 |
I highlight Arctic Sun as both highly experienced and cost effective, but all three check the boxes for quality and expertise specifically tailored to Alaska‘s unique conditions.
Slashing Costs With Solar Incentives
Bringing project pricing down further are state and federal solar incentives like these:
- Federal Tax Credit: 30% credit on solar system cost through 2023, phasing down afterwards
- Alaska Solar Energy Rebate: Tiered per-watt rebate up to $10,000 per system
- Golden Valley Net Metering: Bill credit for solar electricity exported to grid
- Sustainable Natural Alternative Power Program: Low interest loans for renewable energy projects
Factoring in the 30% Federal credit and maximum $10k state rebate, let‘s revisit our 6 kW sample system:
- Initial Cost: $14,600
- Federal Credit (30% of $14,600): -$4,380
- Alaska Rebate: -$10,000
- Effective Cost: $220
What seemed maybe-not-quite affordable suddenly becomes a no-brainer proposition!
Solar Panel Payback Period
Previously our baseline system was calculated to break even in 9 years. But now adding incentive discounts yields a payback timeline of:
- Effective Cost: $220
- Electricity Savings per Year: $1,537
- Payback Time: 0.14 Years
That‘s correct – just 50 days to recoup the out of pocket cost! Then continued savings for 20+ more years.
Over a 25 year lifespan, TOTAL solar panel savings in Alaska would exceed $35,000.
And when the next winter storm blacks out your region, only YOUR lights stay on thanks to energy independence!
Solar Belongs in Alaska
I hope all the numbers convincingly show that Alaska need NOT be written off as unsuitable for solar panels. Yes our dark, frigid climate poses challenges compared to the lower 48. But the substantial savings over decades of sky-high electric bills, paired with the security of self-supplied power, makes solar a perfect match for Alaska‘s proudly independent residents.
If you‘ve made it this far please feel free to reach out with any other questions! I enjoy spreading the solar gospel to help fellow Alaskans take control, save money, and thrive more comfortably in our beloved Last Frontier.
Stay warm and sunny!
