Does Solar Power Work in Alaska?

Solar power is gaining momentum in Alaska. Alaska generated more solar energy in 2023 alone than all solar generation before 2021 combined, demonstrating Alaskans’ growing interest in harnessing this clean and cost-effective energy source. From large-scale projects to off-grid cabins in remote areas, solar power is finding a home in Alaska. Many Alaskans are already enjoying the benefits—from cutting energy costs to reducing their environmental footprint and increasing their self-sufficiency. And the best part? You can, too.

Personal Solar Projects Across Alaska

Alaskans all over the state are investing in solar power projects for their homes. Some, like Jack Reakoff in Wiseman, are using solar to power their off-grid homes. Solar can be especially advantageous in remote areas where it can reduce energy costs and provide a consistent, reliable power source during the spring, summer, and fall seasons.

• Holly, a resident in interior Alaska, invested in 12 solar panels and a 48 volt battery for her small off-grid home 11 years ago. Her solar system allows her to be self-sufficient- In early January, a wind storm caused the houses in her neighborhood to lose power, but with her solar set up, Holly’s power remained on the entire time. For most of the year, Holly gets all the power she needs for her home from her panels and battery storage, even in interior Alaska, where the temperature range and total sunlight per day have substantial seasonal variations.
• For Alaskans with grid-connected homes, solar can also be a game-changer. Richard Dickman, a longtime Alaskan, lives outside Fairbanks and powers his home with solar energy. During the summer months with long daylight hours, Richard racks up more solar energy than he needs to power his home and sells the excess back to the grid through a process called net metering. In 2024, Richard generated 7,700kWh of energy with his solar system, saving him over $2,000 in electricity costs. Inspired by the success of his home solar system, Richard expanded his project to include an electric vehicle. Now, he charges his car using solar power, saving money on gas, too.
• Dean Lambert has had solar on his property in interior Alaska for 10 years. Even on overcast days in the summer, his panels produce suffient energy to power his home. His array took less than eight years to pay off.

Although each system and circumstance is unique, solar has been an important investment for these Alaskans.

Large-Scale Solar Projects: Charging forward!

It’s not just individuals making solar power work in Alaska; large-scale solar power projects are starting to make a significant impact. They’re providing more renewable energy to communities, helping the environment, saving Alaskans money, and increasing community resilience. 

• In 2016, Hughes Village Council launched a solar project  that will increase tribal energy security, maintain reliable electricity and create a replicable system that can be installed in other Alaska Native villages while reducing fuel use by 50% by 2025.
• In Fairbanks, Golden Valley Electric built a solar farm that generates enough energy to power 71 homes each year. 
• Renewable IPP is developing exciting solar projects in Willow and Houston. They will produce electricity that will cost less than electricity currently being produced from other sources.

Other communities are taking steps toward energy independence. Tok, for example, is investing in projects to meet their goal of powering the entire town with 100% renewable energy. The project will combine solar power, battery storage, and wind power and is expected to displace at least 70% of the town’s diesel usage within the first 2 years of operation. 

In addition, some Alaskans at the University of Fairbanks are exploring creative ways to merge solar power with food production. Agrivoltaics—using land for both solar panels and food-growing areas—offers innovative solutions to energy and food security in rural communities. 

Houston solar farm with wild berries growing. Used courtesy of the UAF Agrivoltaics: Unlocking Mid-Market Solar in Rural Northern Climates Project; Photos by Jenny Irene MillerPhoto by Used courtesy of the UAF Agrivoltaics: Unlocking Mid-Market Solar in Rural Northern Climates Project, Photo by: Jenny Irene Miller | Used by permission

Digital Mockup of Kale growing between solar panels at the Houston solar farm. Used courtesy of the UAF Agrivoltaics: Unlocking Mid-Market Solar in RUral Northern Climates Porject: Mockup by Savannah Chrichton.Photo by Used courtesy of the UAF Agrivoltaics: Unlocking Mid-Market Solar in Rural Northern Climates Project, photo by:Savannah Chrichton

These large-scale projects highlight the potential of solar power in Alaska, providing  environmental and economic benefits and local resilience for the state.

Why Solar Makes Sense in Alaska

Alaska’s unique climate can even allow solar photovoltaic systems to produce more electricity than they are expected to in the spring and summer. The snow reflectivity, combined with clear skies, cool temperatures, and long daylight hours in summer allows solar panels to capture more energy than in other regions. 

Solar power also offers a wide range of environmental benefits. It reduces air and water pollution, leading to healthier communities, and combats climate change by cutting emissions. By switching to solar power, Alaskans can also help reduce the severity of extreme weather events and build a more resilient future.

One of solar’s major advantages is its efficiency. Rooftop solar energy is produced where it’s needed, minimizing losses that occur during transmission and distribution. Solar power can also make communities more resilient. Natural disasters like earthquakes, floods, and severe storms can all cause power outages due to downed transmission lines or stalled generation. When houses have rooftop solar combined with battery storage, residents will still have available electricity. Additionally, solar energy offers stable, predictable costs long term, shielding households from price fluctuations common with traditional energy sources. 

Solar energy is a reliable long term energy source that plays a key role in our energy future. Easily accessible atural gas reserves in Alaska are projected to decline significantly in the coming years, according to the 2022 Alaska Division of Oil and Gas study. This will have large impacts for more than two-thirds of Alaska’s residents, such as higher energy costs and disruptions to heating and electricity.  Railbelt electric rates are expected to rise over the next 5 years as utilities begin to import LNG, and as these rates rise, it is smart to consider adding home generation systems. Alaska is going to have to develop new energy sources in the next few years regardless, so it makes sense to use this opportunity to transition to energy sources that create a sustainable energy future, and solar is an important part of that mix. 

Does solar power make sense for your pocketbook?

As many Alaskans know, energy costs in the state are high—often significantly more than in the lower 48. This makes excess solar power generated by grid-connected homes even more valuable, further increasing the return on investment for solar systems.

Furthermore, Federal tax credits are now available to incentivize solar. These Residential Solar Investment Tax Credits make homeowners who purchase solar eligible for a 30% tax credit for the total cost of the solar panels and installation. 

There are also various funding opportunities on the state level, such as community solar, Solar For All, and financing programs. 

• Community solar is a great option for people who aren’t able to install their own solar due to the cost, apartment living, or various other circumstances. These individuals can buy rights to a percentage of a community solar project’s energy output, and the value of the credit results in a reduction in their monthly electric bill from net metering. 
• The Solar For All program will use money from grant funding to buy renewable energy systems for low-income households in areas where net metering is available. Financing programs will help Alaskans with the upfront cost of installing renewable energy systems such as solar, which have already experienced a huge price drop-  Between 2015 and 2020, the price of solar panels has plummeted by 70%. As of early 2025, these programs are on a temporary hold, but will hopefully be available soon. 

Plus, installing solar increases your property value, so even if you move, you’ll likely sell your home for more.

Questions About Solar in Alaska

What are the steps to getting solar on my home? Check out this guide for the step-by-step process of getting solar on your home.

What about snow removal from solar panels? Solar panels won’t generate electricity if they’re covered in snow. You can remove the snow with a soft broom or plastic shovel. Fortunately, snow can also help clean the panels by removing debris, and winter maintenance is minimal.

How do I get energy for my home in the winter? If you’re connected to the grid, you can use the grid for electricity during the winter months. If you have credits from net metering, you can use them to offset your energy bill. Once those credits run out, you’ll pay the regular rate for electricity. Adding storage to your system can also help ensure you have solar powered electricity on cloudy or dark days.

Is solar really better for the earth than traditional energy sources? Yes, solar is far better for the environment than fossil fuels. The benefits of solar—including reducing air pollution, lowering emissions, and fighting climate change— outweigh drawbacks. For further reading on this: Renewable Energy and Conservation: Is there an elephant in the room?. 

How does cold affect solar panels? Most solar panels are designed to function at temperatures as low as -40°F. In fact, solar panels typically perform better in cooler temperatures, making Alaska an ideal location for solar power.

What about battery storage? Check out this guide for more information on storage options and how batteries can help you store excess solar energy for use during cloudy days or at night.

How will solar affect Power Cost Equalization (PCE) in rural Alaska? Even with PCE, energy prices remain high, so solar can provide additional savings. Right now, the PCE formula can have unexpected and unintended outcomes when renewable energy is added into the mix. Full transitions will still save communities money, and Alaskans should encourage lawmakers to update the formula to make sure communities are never de-incentivized for adding in renewable energy projects like solar power.