Alaska could also be recognized for its lengthy winter nights, nevertheless it’s additionally the land of the midnight solar — and photo voltaic panels may also help residents mitigate a few of the nation’s highest power prices.
The Final Frontier ranked forty ninth nationwide for photo voltaic capability in 2022, based on the Photo voltaic Power Industries Affiliation. Regardless of the sluggish adoption, Alaskans have many causes to contemplate photo voltaic panels, based on Chris Rose, founder and CEO of the Renewable Power Alaska Challenge, a clear power nonprofit.
“In Alaska, there was once the query, ‘Properly, why get photo voltaic if it is fairly darkish three months a 12 months?'” Rose stated in a telephone dialog. “That made sense when the worth of photo voltaic was a lot greater than it’s at present, however there may be such an excellent photo voltaic useful resource for seven or eight months a 12 months in Alaska that it is far more possible [for someone] to contemplate photo voltaic.”
Even nonetheless, going photo voltaic might not be ideally suited for you. Your location and relationship to the grid each matter. Here is a breakdown of what it’s essential find out about going photo voltaic in Alaska so you may make one of the best resolution on your house.
Your location issues in the event you’re going photo voltaic in Alaska
The place you are positioned in Alaska impacts the way you get your energy and the practicality of photo voltaic panels. In easy phrases, Alaskans both reside on the Railbelt or off of it.
The Railbelt is an electrical grid overlaying the world from Fairbanks by Anchorage to the Kenai Peninsula. It is house to most Alaskans and consumes almost 80% of the state’s electrical energy. Six electrical utilities — every with its personal technology sources — function alongside the Railbelt. Residents wanting so as to add photo voltaic panels to their house have the chance to participate in web metering, which lets you promote extra photo voltaic power again to the grid in alternate for credit.
Exterior of the Railbelt, a lot of the state’s distant communities rely as an alternative on tiny, disconnected grids — a lot of which use diesel-fueled mills. The price of transporting diesel means electrical energy prices in rural areas could be three to 5 occasions greater than in city areas alongside the Railbelt, based on an evaluation by the Power Info Administration. Due to these excessive prices, the state presents financial help to clients of rural electrical utilities by a Energy Price Equalization program.
That prime price additionally drives innovation, Rose stated. “We have seen so many of those distant communities be excited by including renewables on prime of their diesel grid.”
Going photo voltaic appears to be like totally different in rural communities in comparison with these alongside the Railbelt. It is typically finished on a community-wide scale, that means their methods are considerably bigger than a person residential system. Rose stated there is not plenty of information on residential rooftop methods in these distant locations as a result of it is not inspired by the utility.
“There is not any web metering in rural Alaska as a result of the smaller grids would have a a lot more durable time absorbing electrical energy from rooftop customers. If a small village utility loses a pair clients and in addition has to start out paying them [through net metering], that is going to be an actual downside for his or her backside line,” Rose stated.
Nevertheless, it is not unprecedented for Alaskans in rural areas to spend money on photo voltaic panels for his or her properties. There are a number of extra hurdles — like the upper price of transportation and labor in addition to the shortage of entry to web metering — however photo voltaic methods in rural areas may also help residents offset diesel use in the course of the spring and summer time months.
Alaska solar energy prices
Putting in a photo voltaic system is an enormous funding, however simply how a lot it’s going to price you goes to fluctuate. The associated fee is measured in {dollars} per watt, which implies the larger your system, the costlier will probably be. Nevertheless, the price of your photo voltaic system will rely upon extra than simply the system dimension and the pitch of your roof. Whether or not you reside in a rural space or not will impression the fee in addition to your eligibility for web metering.
The typical system dimension in city Alaska is between 4 kW and 6 kW, based on Rose. Nationwide, the common price of an 8 kW system is $23,920 — $2.99 per watt — based on consulting agency Wooden Mackenzie.
Nationwide common photo voltaic panel prices
| System dimension (kW) | Value per watt | Put in price | |
| Nationwide | 8 | $2.99 | $23,920 |
Alaska’s low stage of photo voltaic adoption means there is not plenty of data on the precise value of putting in photo voltaic within the Final Frontier. Nevertheless, primarily based on analysis by tutorial specialists on the College of Alaska at Fairbanks and our conversations with different specialists, the fee can fall anyplace between $10,000 and $30,000.
Installations in city Alaska usually vary from $1.25 to $3.50 per watt, whereas distant installations vary from $2.20 to $4.60 per watt, based on a 2019 report from the Alaska Middle for Power and Energy.
The price of putting in photo voltaic is often costlier in rural Alaska because of the excessive transportation and labor prices.
How one can pay for photo voltaic panels
There are many choices in relation to financing your photo voltaic system. You may pay upfront in money, reap the benefits of photo voltaic leases and energy buy agreements, borrow with a mortgage or faucet into your property’s fairness.
- Money: In the event you can afford it, contemplate paying on your photo voltaic system in money. You will not should cowl any mortgage charges or curiosity prices, nor do you want a qualifying credit score rating. If photo voltaic panels do not match into your funds proper now, you possibly can reap the benefits of rising rates of interest by saving on your future array in a high-yield financial savings account.
- Photo voltaic mortgage: Some photo voltaic suppliers associate with credit score unions or different monetary establishments to supply photo voltaic loans to their clients. Photo voltaic loans out of your installer could carry greater charges than ones from a financial institution or monetary establishment. Your credit score rating may also impression your eligibility.
- Dwelling fairness mortgage or line of credit score (HELOC): You may faucet into your property’s fairness with a house fairness mortgage or HELOC to finance your photo voltaic array. Dwelling fairness loans and HELOCs can help you finance house enhancements, like photo voltaic panels, with out disturbing your major mortgage. There’s a danger, although: In the event you default in your funds, you may lose your property.
- Lease or energy buy settlement: Some photo voltaic suppliers will can help you enter right into a lease or energy buy settlement at a price usually decrease than what you pay your utility. You will not personal your photo voltaic panels. As a substitute, you will pay for the tools (through lease) or the ability your system generates (through energy buy settlement).
Alaska photo voltaic panel incentives or rebates
The price of going photo voltaic has fallen considerably lately, nevertheless it’s nonetheless an enormous funding irrespective of the place you reside. Alaskans can reap the benefits of a number of authorities incentives and neighborhood tasks, the place out there, to make photo voltaic extra reasonably priced and accessible.
The federal residential clear power credit score is likely one of the important incentives for solar-curious Alaskans, and it was not too long ago prolonged till 2034 by the Inflation Discount Act. This credit score means that you can deduct 30% of the price of your photo voltaic system — together with set up prices — out of your federal tax invoice.
The worth of your property can improve if you set up photo voltaic panels. This implies your property taxes will too. However some Alaskan cities do not improve your property taxes if you add photo voltaic panels. Examine together with your native authorities to search out out.
In 2010, the Regulatory Fee of Alaska (PDF) permitted web metering rules, which permit Railbelt residents to promote extra photo voltaic technology in alternate for credit equal to the wholesale price, which is decrease than the retail price (what you pay for electrical energy). Alaska’s web metering system at present operates on a month-to-month foundation.
“Month-to-month web metering does not incentivize photo voltaic fairly as a lot as an annual system, significantly in a spot that is so seasonal like Alaska,” Rose stated. “My system may make six or seven occasions extra energy than I utilized in June, however I am unable to roll over these credit on a retail foundation. As a substitute, I get an prevented price credit score that may assist defray the price of my payments within the winter.”
The Solarize Program helps communities purchase photo voltaic panels as a bunch and obtain important reductions. These reductions can vary from 10 to 17% earlier than making use of the federal tax credit score, based on The Alaska Middle, an environmental advocacy group that coordinates the trouble.
Whereas yow will discover a whole checklist of incentives in Alaska on the Database of State Incentives for Renewables and Effectivity, listed below are some main ones price noting:
Alaska photo voltaic incentives
| Program | Description |
|---|---|
| Web metering | Since 2010, Alaska web metering regulation requires sure electrical utilities to supply web metering. In case your photo voltaic system’s capability is lower than 25 kW, you possibly can promote your extra photo voltaic power again to the ability firm in alternate for credit. |
| Property tax exemption (varies) | Alaska regulation permits municipalities to create their very own property tax exemptions for residential renewable power methods, that means you will not see will increase to your property taxes if you set up photo voltaic panels. Nevertheless, not all municipalities provide this exemption, so you should definitely examine whether or not that is an possibility the place you reside. |
| Residential clear power credit score | You may declare as much as 30% in tax credit with the federal residential clear power credit score if you buy photo voltaic panels. |
| Solarize Alaska campaigns | The Solarize Program permits communities to buy photo voltaic panels as a bunch and obtain discounted charges on panels and set up. This program was piloted in Oregon and is now out there in Anchorage, Fairbanks and Mat-Su. |
Alaska photo voltaic panel firms
The Photo voltaic Power Industries Affiliation reviews simply 5 photo voltaic installers in Alaska.
When selecting a photo voltaic supplier, it is necessary to buy round to search out one which ticks all of your containers.
Some issues to contemplate are whether or not the corporate presents lengthy warranties and its customer support scores, in addition to services and products supplied. Particularly in Alaska, you will need to ensure that your installer presents high-efficiency panels so you possibly can capitalize on each little bit of sunshine. Excessive effectivity panels will assist you to try this in low-light circumstances.
Here’s a checklist of photo voltaic firms you may contemplate, primarily based on our analysis, skilled enter and CNET’s assessment of one of the best photo voltaic firms.
Alaska Photo voltaic
Based mostly in Anchorage, Alaska Photo voltaic installs grid-tied and off-grid photo voltaic in addition to battery methods. Whereas Alaska Photo voltaic solely presents one photo voltaic panel model — Qcells — the panels’ better-than-average effectivity ranking (20.6%) makes them appropriate for low-light circumstances. Nevertheless, Alaska Photo voltaic has restricted financing choices (no leases or energy buy agreements) and solely presents the producer’s guarantee for the tools.
Arctic Photo voltaic Ventures
Based in 2015, Arctic Photo voltaic Ventures installs grid-tied photo voltaic methods and photo voltaic batteries in and round Anchorage. The corporate makes a speciality of residential photo voltaic installations and solid-state battery methods. ASV primarily installs REC photo voltaic panels — however the panels do have a excessive effectivity ranking of twenty-two.3%. ASV offers a 30-year insurance-backed guarantee. Whereas ASV does not provide leases or energy buy agreements, you possibly can reap the benefits of its mortgage choices by Clear Power Credit score Union and Mosaic. ASV doesn’t set up off-grid photo voltaic.
Renewable Power Techniques of Alaska
Since 2006, Renewable Power Techniques of Alaska has offered a wide range of renewable power methods, together with grid-tied and off-grid photo voltaic methods along with photo voltaic batteries. RES serves Anchorage, Fairbanks, Wasilla and the encircling areas. The corporate presents a collection of panels, together with Trina and Canadian Photo voltaic — each of which have above-average effectivity scores. RES presents robust warranties — 50 years for the tools and 30 years for the ability output — however has restricted financing choices (no leases or PPAs).
SunPower Photo voltaic
SunPower Photo voltaic operates in all 50 states and has been in enterprise since 1985. The corporate produces its personal branded merchandise, such because the Maxeon photo voltaic panels and SunVault photo voltaic batteries. The panels have the best effectivity ranking on this group — 22.8% — however are additionally a few of the costliest. You should purchase or lease panels from SunPower, or enter into an influence buy settlement. SunPower presents a 25-year full system guarantee.
Set up components to contemplate
Photo voltaic panels would be the proper match on your house — or they won’t be. Right here are some things to contemplate:
- Lack of solar within the winter months: Photo voltaic panels nonetheless work in excessive chilly temperatures — in reality, they might even work higher. Nevertheless, snow and the lengthy winter nights of Alaska imply your panels will produce considerably much less (if any) energy in the course of the winter. Consequently, your photo voltaic panels are unlikely to be a year-round resolution.
- Excessive-efficiency photo voltaic panels: As a result of Alaska sees fewer sunny days — 121 days per 12 months in comparison with the nationwide common of 205 — specialists advocate choosing high-efficiency panels to maximise your photo voltaic’s system’s productiveness. Photo voltaic panel effectivity measures how effectively the panel converts daylight to power. Prime tier panels have effectivity scores of 20% and above. Whereas high-efficiency panels can improve the upfront price of your photo voltaic system, they will improve your financial savings in the long term.
- Power storage system: Whereas photo voltaic batteries add worth to any photo voltaic system, they’re significantly helpful in rural areas with no grid connection. Since rural Alaskans are possible ineligible for web metering, photo voltaic power storage methods enable them to retailer and draw on extra photo voltaic technology. Photo voltaic batteries generally is a expensive funding, starting from $5,000 to $20,000. Nevertheless, you possibly can apply the 30% federal photo voltaic tax credit score in the direction of them.
- Roof situation and pitch: Be sure that your roof is in good situation earlier than putting in photo voltaic panels. A good firm will examine your roof’s situation and pitch previous to set up. In case your roof’s pitch is not suited to Alaska’s latitude, you might contemplate ground-mounted photo voltaic panels when you’ve got the house.
- DIY set up: Some Alaskans, significantly in rural areas, contemplate putting in their photo voltaic system themselves. DIY photo voltaic panels should not designed to be hooked as much as the grid, which is why this technique is extra frequent in distant areas. Putting in photo voltaic panels your self requires no less than some data {of electrical} work. Whereas it could be cheaper to put in your photo voltaic array your self, you will lose out on the extra advantages of skilled set up.
FAQs
What’s the common photo voltaic system dimension in Alaska?
In city areas, the common system is round 5 kW. That quantity is usually a lot bigger in distant areas that go for community-scale photo voltaic methods.
How a lot solar does Alaska get?
Alaska averages 121 days of sunshine per 12 months. In sure components of Alaska, the solar will shine for many, if not all, of the day in the course of the summer time months.
Do I want to scrub snow off my photo voltaic panels?
In Alaska, snow is certain to land in your photo voltaic panels. Mild snow will possible soften rapidly however heavy snow can put an excessive amount of weight in your photo voltaic panels. Earlier than making an attempt to take away snow out of your panels, you should definitely examine together with your supplier to see if they will help. You need to be sure you do not void your guarantee.
