Alaska Solar Incentives and Rebates

The state of Alaska has abundant natural resources, including an abundance of sunlight, making it an ideal place for solar energy production. However, unlike many other states in the US, Alaska does not currently have any state-level solar incentives or rebates in place. This can make it more challenging for residents and businesses to invest in solar energy, but there are still options available for those looking to take advantage of the state’s sunny climate.


The Federal Investment Tax Credit in Alaska

The Federal Investment Tax Credit (ITC) is a valuable incentive for those looking to install solar panels in Alaska. This credit is equal to 30% of the cost of the system, and it can be claimed on the federal income tax return for the year in which the system was installed. This incentive is open to all taxpayers, regardless of where they live. By taking advantage of the ITC, people can reduce the initial cost of installing solar panels in Alaska. The ITC ended on December 31, 2022, with the credit then dropping to 26% for 2023, 22% for 2024 and 10% for commercial properties and 0% for residential property afterwards.


State Tax Credit in Alaska

Unfortunately, the official website of Alaska Tax Division does not list any solar related credits, tax exemptions or rebates.


State-Wide Solar Initiatives in Alaska

Alaska has not yet established state-wide solar incentives. The first reason for this is the state’s relatively small population, which means that there is a limited market for solar energy. Additionally, Alaska is unique in that it has abundant hydroelectric and geothermal resources, which have traditionally been used to generate electricity in the state. These resources are relatively low-cost and have been able to meet the state’s energy needs in the past, so there was less pressure to develop other forms of energy production as compared to the present. 


Solar Easements in Alaska

Alaska has state-specific laws on Solar Easements, which are agreements that allow one property owner to protect the exposure of their property to the direct rays of the sun.

An easement obtained for the purpose of protecting the exposure of property to the direct rays of the sun must be created in writing and is subject to the recording requirements for other conveyances of real property. The instrument creating the solar easement must include certain information, such as:

  • The vertical and horizontal angles, expressed in degrees, at which the solar easement extends over the real property subject to the solar easement. This information is crucial to ensure that the solar panels on the benefitting property receive the appropriate amount of sunlight.
  • Any terms or conditions under which the solar easement is granted or under which it will be terminated. This includes the length of the easement and any termination clause or conditions under which the easement can be terminated.
  • Any provisions for compensation of the owner of the property benefiting from the solar easement in the event of interference with the enjoyment of the solar easement, or compensation of the owner of the property subject to the solar easement for maintaining the solar easement. This is important to ensure that any party affected by the easement is fairly compensated for any losses or damages.


Net Metering in Alaska

The power generated by solar panels in Alaska can be credited through a process called net metering. Net metering allows homeowners and businesses with solar panels to receive credits on their utility bills for the excess power they generate and send back to the grid. These credits can then be used to offset the cost of electricity consumed when the solar panels are not producing enough power, such as at night or on cloudy days.


Benefits of going solar in Alaska

One of the main benefits is the ability to reduce electricity bills by generating your own power. Additionally, solar panels can increase the property value and improve the home’s resale value, which can be a financial benefit for homeowners.

Another important benefit is the environmental impact of solar energy production. Solar energy is a clean, renewable source of energy that does not produce harmful emissions or pollutants. This can help to reduce the state’s dependence on fossil fuels and contribute to a cleaner, healthier environment.




While Alaska does not currently offer any state-level incentives or rebates for solar energy production, the state’s abundance of sunlight and the availability of solar easements and net metering make it an attractive option for those looking to invest in solar power. The benefits of solar energy, including reduced electricity bills, increased property value, and environmental impact, make it a financially and environmentally wise choice for individuals and businesses. The state specific laws on solar easements and the availability of net metering provide property owners the added benefit of protecting their property’s solar exposure and receiving credits on their utility bills.




Is solar energy viable in Alaska? 

Yes, solar energy is viable in Alaska and can provide cost savings in the long run. 


What types of solar panel systems are available in Alaska? 

Solar panel systems available in Alaska include both grid-tied and off-grid systems. 


Are there incentives available to help with the cost of solar in Alaska? 

Yes, there are several local, state, and federal incentives available to help offset the cost of solar in Alaska. Find out more at SolarEmpower!


How long does a solar system typically last? 

A solar system usually lasts for 25-30 years with minimal maintenance. 


How much energy does a solar system generate? 

The amount of energy a solar system generates depends on the size and type of system installed. Generally, a residential system in Alaska can generate enough electricity to power an entire home. Get more info about solar guides at SolarEmpower.