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RoofPayback
Updated Oct 15

Solar panels in Fairbanks, AK: payback and output

A kW of south-facing panels in Fairbanks produces about 924 kWh a year, about the same as Anchorage, the Alaska reference city. Summer months produce 7.9× what winter does. To cover a typical 10,500 kWh/yr home on paper you'd need roughly 11.4 kW.

Output by month in Fairbanks (kWh per kW)

Best: May · weakest: Dec.

Jan: 10 kWhJanFeb: 33 kWhFebMar: 106 kWhMarApr: 130 kWhAprMay: 149 kWhMayJun: 145 kWhJunJul: 122 kWhJulAug: 105 kWhAugSep: 72 kWhSepOct: 38 kWhOctNov: 11 kWhNovDec: 3 kWhDec

Example 7 kW system in Fairbanks

Installed cost (example)
$21,000
Production, year 1
6,467 kWh
Savings, year 1
$1,865
Payback
10.7 years
25-year net gain
$36,126

Uses the Alaska average price (28.83¢/kWh, EIA July 2026), full net metering and no incentives. Your utility's rate and export credit may differ — change them below.

Roof direction in Fairbanks

Yearly output per kW of panels at a 20° pitch, and how it compares with a south-facing roof.

Roof faceskWh per kW/yrvs. south
South924—
Southeast861−7%
Southwest897−3%
East741−20%
West790−14%
East-west (split)765−17%

Calculate your home in Fairbanks

1 · Your roof
Roof faces
Pitch

About 11.5 kW would cover 100% of your yearly use.

2 · Your usage
3 · Prices
Paying with
Advanced assumptions

Estimated payback

10.7 years

A solid case if you plan to stay in the home.

≈ $155/month off your bill in year 1

025y
Year-1 savings
$1,865
25-yr net gain
$36,126
Return (IRR)
8.8%
Net cost
$21,000

Cumulative savings minus cost

-$21k$0$36kYear 0510152025Break-even · 10.7 yrs

Production vs. use by month

6,467 kWh/yr

Jan: 73 kWhJanFeb: 234 kWhFebMar: 743 kWhMarApr: 907 kWhAprMay: 1,045 kWhMayJun: 1,012 kWhJunJul: 853 kWhJulAug: 734 kWhAugSep: 505 kWhSepOct: 263 kWhOctNov: 77 kWhNovDec: 22 kWhDec
Production Your use

Covers 30% of your use directly; 48% of the output is used on the spot.

Which size pays off best?

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

SizeCostYear-1 savingsPayback25-yr gain
3 kW$9,000$79911.4 years$14,054
4 kW$12,000$1,06511.1 years$19,572
5 kW$15,000$1,33210.9 years$25,090
6 kW$18,000$1,59810.8 years$30,608
7 kW$21,000$1,86510.7 years$36,126
8 kW$24,000$2,13110.7 years$41,644
10 kW$30,000$2,66410.6 years$52,680
12 kW$36,000$3,02710.8 years$62,635
Estimate based on NLR PVWatts and EIA data. How we calculate.

Read the full Alaska solar guide for net metering, orientation and price trends.

Cities with similar sunshine

Solar in Fairbanks: common questions

Are solar panels worth it in Fairbanks, AK?

For an example 7 kW system costing $21,000 on a home using 10,500 kWh a year, payback in Fairbanks is 10.7 years with full net metering and 14.1 years if exports earn half the retail rate, at the Alaska average price of 28.83¢/kWh (EIA, July 2026).

How much electricity do solar panels produce in Fairbanks?

About 924 kWh per year for each kW of south-facing panels at a 20° pitch (NLR PVWatts, typical-year weather), from 3 kWh in Dec to 149 kWh in May.

What size solar system does a home in Fairbanks need?

About 11.4 kW to cover 10,500 kWh a year. Divide your own annual use by 924 kWh per kW for a first estimate; if exports earn less than retail, a smaller system often pays back faster.

Does roof direction matter in Fairbanks?

Yes. Per kW at a 20° pitch: south 924 kWh, southeast 861 kWh, southwest 897 kWh, east 741 kWh, west 790 kWh, east-west (split) 765 kWh a year. South-facing roofs produce the most; east or west roofs still work, with less output.

Guides for going solar in Fairbanks

Data: NLR PVWatts v8 (U.S. DOE National Laboratory of the Rockies, formerly NREL), TMY weather near Fairbanks (64.84, -147.72), 14% losses, retrieved 2026-10-11. Published 2026-10-15.