Going Solar in Alaska? Here’s How to Know if It’s Worth It

Alaska could also be identified for its lengthy winter nights, but it surely’s additionally the land of the midnight solar — and photo voltaic panels may also help residents mitigate a few of the nation’s highest vitality prices.

The Final Frontier ranked forty ninth nationwide for photo voltaic capability in 2022, in accordance with the Photo voltaic Vitality Industries Affiliation. Regardless of the sluggish adoption, Alaskans have many causes to think about photo voltaic panels, in accordance with Chris Rose, founder and CEO of the Renewable Vitality Alaska Challenge, a clear vitality nonprofit. 

“In Alaska, there was once the query, ‘Effectively, why get photo voltaic if it is fairly darkish three months a 12 months?’” Rose mentioned in a cellphone dialog. “That made sense when the worth of photo voltaic was a lot greater than it’s in the present day, however there may be such photo voltaic useful resource for seven or eight months a 12 months in Alaska that it is far more seemingly [for someone] to think about photo voltaic.” 

The quantity of solar Alaska will get modifications drastically between the winter and summer season, that means photo voltaic panels will not be the answer for all of your vitality wants. Nonetheless, they may also help you decrease your month-to-month electrical payments. 

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 learn about going photo voltaic in Alaska so you may make one of the best determination in your dwelling. 

Your location issues in case 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 stay on the Railbelt or off of it.

The Railbelt is an electrical grid masking the world from Fairbanks by Anchorage to the Kenai Peninsula. It is dwelling to most Alaskans and consumes practically 80% of the state’s electrical energy. Six electrical utilities — every with its personal technology sources — function alongside the Railbelt. Residents trying so as to add photo voltaic panels to their dwelling have the chance to participate in web metering, which lets you promote extra photo voltaic vitality again to the grid in trade for credit.

Outdoors of the Railbelt, a lot of the state’s distant communities rely as a substitute on tiny, disconnected grids — a lot of which use diesel-fueled turbines. The price of transporting diesel means electrical energy prices in rural areas will be three to 5 instances greater than in city areas alongside the Railbelt, in accordance with an evaluation by the Vitality Info Administration. Due to these excessive prices, the state gives financial help to clients of rural electrical utilities by a Energy Value Equalization program. 

That prime price additionally drives innovation, Rose mentioned. “We have seen so many of those distant communities be excited by including renewables on prime of their diesel grid.” 

Going photo voltaic seems to be totally different in rural communities in comparison with these alongside the Railbelt. It is usually performed on a community-wide scale, that means their programs are considerably bigger than a person residential system. Rose mentioned there is not numerous knowledge on residential rooftop programs 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 likewise has to begin paying them [through net metering], that is going to be an actual drawback for his or her backside line,” Rose mentioned.

Nonetheless, it is not unprecedented for Alaskans in rural areas to spend money on photo voltaic panels for his or her houses. There are just a few extra hurdles — like the upper price of transportation and labor in addition to the shortage of entry to web metering — however photo voltaic programs in rural areas may also help residents offset diesel use in the course of the spring and summer season months. 

Alaska solar energy prices

Putting in a photo voltaic system is a giant funding, however simply how a lot it should price you goes to fluctuate. The fee is measured in {dollars} per watt, which implies the larger your system, the costlier it will likely be. Nonetheless, the price of your photo voltaic system will rely upon extra than simply the system measurement and the pitch of your roof. Whether or not you reside in a rural space or not will affect the associated fee in addition to your eligibility for web metering.

The common system measurement in city Alaska is between 4 kW and 6 kW, in accordance with Rose. Nationwide, the common price of an 8.6 kW system is $31,558 — $3.67 per watt — in accordance with Lawrence Berkeley Nationwide Laboratory. 

Alaska’s low degree of photo voltaic adoption means there is not numerous data on the precise worth of putting in photo voltaic within the Final Frontier. Nonetheless, based mostly on analysis by educational consultants on the College of Alaska at Fairbanks and our conversations with different consultants, the associated fee can fall wherever 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, in accordance with a 2019 report from the Alaska Heart for Vitality and Energy. 

The price of putting in photo voltaic is usually costlier in rural Alaska as a result of excessive transportation and labor prices. 

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The best way to pay for photo voltaic panels

There are many choices in terms of financing your photo voltaic system. You possibly can pay upfront in money, benefit from 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 in your photo voltaic system in money. You will not must 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 may benefit from rising rates of interest by saving in your future array in a high-yield financial savings account. 
• Photo voltaic mortgage: Some photo voltaic suppliers accomplice with credit score unions or different monetary establishments to supply photo voltaic loans to their clients. Photo voltaic loans out of your installer might carry greater charges than ones from a financial institution or monetary establishment. Your credit score rating may also affect your eligibility.
• Residence fairness mortgage or line of credit score (HELOC): You possibly can faucet into your property’s fairness with a house fairness mortgage or HELOC to finance your photo voltaic array. Residence fairness loans and HELOCs help you finance dwelling enhancements, like photo voltaic panels, with out disturbing your major mortgage. There’s a threat, although: In the event you default in your funds, you would lose your property. 
• Lease or energy buy settlement: Some photo voltaic suppliers will help you enter right into a lease or energy buy settlement at a fee usually decrease than what you pay your utility. You will not personal your photo voltaic panels. As an alternative, you may pay for the gear (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, but it surely’s nonetheless a giant funding irrespective of the place you reside. Alaskans can benefit from just a few authorities incentives and group tasks, the place accessible, to make photo voltaic extra inexpensive and accessible. 

The federal residential clear vitality credit score is among the principal incentives for solar-curious Alaskans, and it was lately prolonged till 2034 by the Inflation Discount Act. This credit score permits you to 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 enhance while you set up photo voltaic panels. This implies your property taxes will too. However some Alaskan cities do not enhance your property taxes while you add photo voltaic panels. Examine together with your native authorities to seek out out. 

In 2010, the Regulatory Fee of Alaska (PDF) accepted web metering laws, which permit Railbelt residents to promote extra photo voltaic technology in trade for credit equal to the wholesale fee, which is decrease than the retail fee (what you pay for electrical energy). Alaska’s web metering system presently operates on a month-to-month foundation. 

“Month-to-month web metering would not incentivize photo voltaic fairly as a lot as an annual system, significantly in a spot that is so seasonal like Alaska,” Rose mentioned. “My system would possibly make six or seven instances extra energy than I utilized in June, however I am unable to roll over these credit on a retail foundation. As an alternative, 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 vital reductions. These reductions can vary from 10 to 17% earlier than making use of the federal tax credit score, in accordance with The Alaska Heart, an environmental advocacy group that coordinates the trouble.

Whereas you’ll find a whole listing of incentives in Alaska on the Database of State Incentives for Renewables and Effectivity, listed here are some main ones price noting: 

Alaska photo voltaic panel corporations

The Photo voltaic Vitality Industries Affiliation stories simply 5 photo voltaic installers in Alaska.

When selecting a photo voltaic supplier, it is necessary to buy round to seek out one which ticks all of your containers.

Some issues to think about are whether or not the corporate gives lengthy warranties and its customer support rankings, in addition to services supplied. Particularly in Alaska, you may need to be certain your installer gives high-efficiency panels so you may capitalize on each little bit of sunshine. Excessive effectivity panels will show you how to try this in low-light circumstances. 

Here’s a listing of photo voltaic corporations you would possibly contemplate, based mostly on our analysis, professional enter and CNET’s overview of one of the best photo voltaic corporations. 

Alaska Photo voltaic

Primarily based in Anchorage, Alaska Photo voltaic installs grid-tied and off-grid photo voltaic in addition to battery programs. Whereas Alaska Photo voltaic solely gives one photo voltaic panel model — Qcells — the panels’ better-than-average effectivity ranking (20.6%) makes them appropriate for low-light circumstances. Nonetheless, Alaska Photo voltaic has restricted financing choices (no leases or energy buy agreements) and solely gives the producer’s guarantee for the gear. 

Arctic Photo voltaic Ventures

Based in 2015, Arctic Photo voltaic Ventures installs grid-tied photo voltaic programs and photo voltaic batteries in and round Anchorage. The corporate focuses on residential photo voltaic installations and solid-state battery programs. ASV primarily installs REC photo voltaic panels — however the panels do have a excessive effectivity ranking of twenty-two.3%. ASV gives a 30-year insurance-backed guarantee. Whereas ASV would not supply leases or energy buy agreements, you may benefit from its mortgage choices by Clear Vitality Credit score Union and Mosaic. ASV doesn’t set up off-grid photo voltaic.

Renewable Vitality Programs of Alaska

Since 2006, Renewable Vitality Programs of Alaska has supplied quite a lot of renewable vitality programs, together with grid-tied and off-grid photo voltaic programs along with photo voltaic batteries. RES serves Anchorage, Fairbanks, Wasilla and the encompassing areas. The corporate gives a choice of panels, together with Trina and Canadian Photo voltaic — each of which have above-average effectivity rankings. RES gives sturdy warranties — 50 years for the gear 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 very best effectivity ranking on this group — 22.8% — however are additionally a few of the most costly. You should purchase or lease panels from SunPower, or enter into an influence buy settlement. SunPower gives a 25-year full system guarantee. 

Set up elements to think about

Photo voltaic panels could be the proper match in your dwelling — or they may not be. Right here are some things to think about:

• Lack of solar within the winter months: Photo voltaic panels nonetheless work in excessive chilly temperatures — actually, they could even work higher. Nonetheless, 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 — consultants 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 vitality. High tier panels have effectivity rankings of 20% and above. Whereas high-efficiency panels can enhance the upfront price of your photo voltaic system, they’ll enhance your financial savings in the long term. 
• Vitality 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 seemingly ineligible for web metering, photo voltaic vitality storage programs 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. Nonetheless, you may apply the 30% federal photo voltaic tax credit score in direction of them. 
• Roof situation and pitch: Be certain 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, chances are you’ll contemplate ground-mounted photo voltaic panels if in case you have the area. 
• DIY set up: Some Alaskans, significantly in rural areas, contemplate putting in their photo voltaic system themselves. DIY photo voltaic panels will not be designed to be hooked as much as the grid, which is why this technique is extra widespread in distant areas. Putting in photo voltaic panels your self requires at the very least some information {of electrical} work. Whereas it might be cheaper to put in your photo voltaic array your self, you may lose out on the extra advantages of professional set up. 

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