Alaska Solar Incentives, Cost & Net Metering (2026)
Written by Aditya Patil · Last updated 2026-09-24
Going solar in the Last Frontier involves navigating a patchwork of independent cooperatives, high electricity rates, and harsh winters. Here is what you need to know about Alaska's solar landscape in 2026.
$129
Avg. monthly bill
28.21¢/kWh
Avg. rate
N/A
Real installed cost
insufficient data
Cost of solar in Alaska
Public data on actual installed solar prices in Alaska is incredibly limited. The primary national dataset (LBNL's Tracking the Sun) doesn't record enough residential installations in the state to establish a reliable real-world average.
Because Alaska's logistics and installation seasons present unique challenges, quotes can differ wildly depending on whether you are on the Railbelt or in a remote community. You should plan to seek multiple local quotes rather than relying on national averages.
Incentives & rebates
| Program | Amount | Status |
|---|---|---|
| Optional Municipal Property Tax Exemption for Renewable Energy Systems | Local option; the exemption amount and any conditions are set by each municipality's own ordinance, so there is no single statewide exemption amount | open |
| EPA Solar for All — Alaska (AEA / Tanana Chiefs Conference) | $125 million total was awarded ($62.5 million to the Alaska Energy Authority, $62.5 million to the Tanana Chiefs Conference); the program was terminated before most funds were deployed to homeowners | closed |
| Alaska Renewable Energy Fund (REF) — Alaska Energy Authority | Competitive grant funding for feasibility studies, engineering/design, and construction; amounts vary by project and depend on annual legislative appropriation (Round 19 application window: July 13 - Sept 11, 2026) | closed |
Net metering / export rules
Most utilities with over 5 gigawatt-hours of retail sales must offer net metering for systems under 25 kW, per the Regulatory Commission of Alaska (RCA). However, since there are no single statewide investor-owned utilities, exact policies are dictated by the co-op or municipal utility you reside in.
Crucially, utilities do not have to pay you cash or roll over credits indefinitely at full retail value. Exported energy is credited on your bill at a much lower avoided-cost or non-firm power rate. Also, there are capacity caps on how many customers can participate (historically 1.5%, although several utilities have petitioned for or adopted higher limits).
| Policy type | Varies by utility (avoided-cost crediting) |
| Statewide cap | 1.5% of retail demand (docket open to raise) |
| Export rate | Avoided-cost or non-firm power rate (not full retail) |
| Rollover | Credits offset future bills but typically do not pay out in cash |
Exported power is credited monthly at the local utility's avoided-cost or non-firm power rate, not the full retail rate; for example, Golden Valley Electric Association's published net metering rate was $0.13726/kWh for the Sept-Nov 2026 quarter, adjusted quarterly. Credits do not expire but are typically not paid out in cash and only offset future bills.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Chugach Electric Assn Inc | 21.24¢/kWh | 97,048 |
| Matanuska Electric Assn Inc | 23.37¢/kWh | 64,205 |
| Golden Valley Elec Assn Inc | 30.32¢/kWh | 40,675 |
Estimate your own numbers
You can use our solar calculator to estimate system sizes and savings for your Alaska home.
FAQ
Does Alaska have a statewide net metering program?
While the Regulatory Commission of Alaska (RCA) requires larger utilities to offer net metering, there is no single statewide rate. Because Alaska relies on independent co-ops and municipal utilities rather than investor-owned utilities, export rates and program caps vary locally. You are generally credited at an avoided-cost rate rather than a full 1:1 retail rate.
Are there any state rebates for going solar in Alaska?
Currently, there are no statewide cash rebates for individual residential solar. A federal Solar for All grant was awarded but terminated before most funds reached homeowners. Some municipalities offer optional property tax exemptions for renewable energy systems, but you must check with your local government.
How much does electricity cost in Alaska?
Electricity in Alaska is quite expensive compared to the national average. As of recent data, the average residential rate is roughly 28.21¢/kWh, and the average monthly bill sits around $129.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil