Solar panels in Alaska: payback, production and savings

In Anchorage, each kW of south-facing panels produces about 922 kWh a year, #51 of 51 states for sunshine. Homes in Alaska paid 28.83¢/kWh on average in July 2026 (#6 highest in the U.S.; national average 18.31¢), up 5.6% from a year earlier. Above-average power prices make every solar kWh worth more here.

Output by month (kWh per kW)

May is the best month (139 kWh) and Dec the weakest (8 kWh).

Example: 7 kW system, 10,500 kWh/yr home

	Full net metering	Credit ½ retail	Credit ¼ retail
Year-1 savings	$1,860	$1,402	$1,172
Payback	10.8 years	13.9 years	16.2 years
25-year net gain	$35,984	$22,094	$15,149

Assumptions, not quotes: $21,000 installed ($3,000/kW), no incentives, 40% of use during daylight, power prices +2.5%/yr. Change them below.

How roof direction changes output in Alaska

kWh per kW per year, and the difference vs. south at 20°.

Facing	20° pitch	30° pitch
South	922 (+0%)	965 (+5%)
Southeast	855 (-7%)	875 (-5%)
Southwest	893 (-3%)	926 (+0%)
East	731 (-21%)	707 (-23%)
West	781 (-15%)	773 (-16%)
East-west (split)	756 (-18%)	740 (-20%)

What to check before going solar in Alaska

How your utility credits exports. Net metering rules differ by state and by utility, and several states have moved to lower "net billing" credits worth a fraction of the retail rate. The example table shows three cases; look up your utility's current program in the DSIRE database.
Federal tax credit. The 30% residential clean energy credit does not apply to systems placed in service after December 31, 2025 (IRS). Count only state or utility incentives that are still open.
Your real price per kWh. Divide your bill's energy and delivery charges by the kWh used; fixed monthly fees don't go away with solar.

Run your own numbers in Alaska

Your roofLocation

FacingRoof pitch

System sizekWA typical modern panel is 0.4 kW.

Your usageAnnual electricity usekWh/yrAdd up 12 months of bills. U.S. homes average roughly 10,000–11,000 kWh.Use while the sun is up%30–40% if nobody is home during the day; 50–60% if you work from home.

PricesElectricity price$/kWhBlank = Alaska average from EIA ($0.288/kWh). Use your bill's all-in rate.Credit for exported powerInstalled cost$/kWYour quote divided by system size. Example value.Rebates and incentives$The 30% federal credit ended for systems placed in service after Dec 31, 2025.

Advanced

Maintenance & insurance$/yrElectricity price change%/yrAssumption. Try 0% for a conservative case.

First-year savings

$1,860

Payback

10.8 years

25-year net gain

$35,984

Return (IRR)

8.7%

Production vs. use by month

6,452 kWh/yr produced · covers 31% of your use directly · 51% of output used on the spot.

Production Use

Which size pays off best?

Same usage and prices, only size changes. Best 25-year net gain: 12 kW.

kW	Cost	Year-1 savings	Payback	25-yr gain
3	$9,000	$797	11.5 years	$13,993
4	$12,000	$1,063	11.1 years	$19,491
5	$15,000	$1,329	11.0 years	$24,989
6	$18,000	$1,594	10.8 years	$30,486
7	$21,000	$1,860	10.8 years	$35,984
8	$24,000	$2,126	10.7 years	$41,482
10	$30,000	$2,657	10.6 years	$52,477
12	$36,000	$3,027	10.8 years	$62,484

Estimate based on NLR PVWatts and EIA data. See the methodology.

States with similar sunshine

Data: NLR PVWatts v8 (U.S. DOE National Laboratory of the Rockies, formerly NREL), TMY weather for Anchorage (61.22, -149.9), 14% losses, retrieved 2026-10-11. Prices: U.S. EIA Electric Power Monthly, Table 5.6.A (July 2026). Methodology.