Unlock the Power of Solar in Alaska with Generous Incentives and Rebates
While Alaska may not be the sunniest state in the nation, the high cost of electricity, ranking 4th among all 50 states, makes it an attractive place for solar investment and renewable energy adoption. Alaskan homeowners can take advantage of a generous net metering policy, local tax exemptions, and even potential annual payments for installing solar and battery storage systems.
Discover the Alaska solar incentives, rebates, and benefits that can help you make the switch to clean energy.
Alaska Solar Incentives, Rebates, and Benefits Explained
Federal Solar Tax Credit for Alaskans
The Federal Investment Tax Credit (ITC) is a substantial incentive for Alaskan homeowners who purchase their solar panel systems outright. This credit currently amounts to 26% of your solar system’s cost, but it will drop to 22% in 2023. This is one of the many reasons why going solar sooner rather than later is a wise decision.
No Sales Tax on Solar Installations
Alaska doesn’t have a state sales tax, which means your solar investment and setup are valued without any additional tax burden.
Property Tax Exemption for Solar Systems
When you add a solar energy system to your home, your property value is likely to increase. However, thanks to Alaska’s solar property tax exemption, your property tax will remain the same as before the installation.
Check Your Eligibility for Zero Down Solar Installation and Rebates!
Net Metering in Alaska
Alaska has adopted statewide net metering standards that apply to all utilities. Net metering allows residential electricity producers to sell their excess power to the grid. Utilities must provide net metering to homeowners with systems up to 25 kW. The utility company reimburses the homeowner for this power through credits on their electricity bill. The homeowner draws power when needed, then sells excess energy they don’t need and pays only for the difference, or “net.” Any extra power generated will be credited at the retail rate in the next month’s bill, and the credits will carry over indefinitely. Net metering is an excellent incentive, and it’s great that Alaska offers it.
Solar Power Performance Payments (Performance-Based Incentives)
The state of Alaska offers limited power performance payments or performance-based incentives. These are small cash payments based on the measured kilowatt-hours (kWh) or BTUs generated by a renewable energy system. Solar Renewable Energy Credits (SRECs) represent the electricity generated by your renewable energy system, and their value varies based on supply and demand. Utilizing SRECs can be a highly beneficial method for offsetting the cost of your solar energy system and helping it pay for itself.
SNAP Program from Golden Valley Electric Association
While the state of Alaska doesn’t provide explicit solar incentives and rebates, customers of the Golden Valley Electric Association (GVEA) may be eligible for the Sustainable Natural Alternative Power (SNAP) program. Homeowners who invest in solar energy systems can request $1.50/kWh incentives for renewable energy and battery storage systems of up to 25 kW. These incentives are distributed based on the contributions to the SNAP Fund, which is replenished yearly.
Maximize Your Solar Savings in Alaska
Despite Alaska’s unique climate, investing in a solar panel system can be a rewarding decision, especially considering the high cost of electricity. To make an informed choice, we recommend consulting with a reputable solar company to discuss the best options for your specific needs and maximize your solar savings.
