Alaska solar rebates and incentives: 2026 guide

Alaska doesn't offer many solar incentives, but if your electric bill is high, you may still save by going solar.

Updated Jan 6, 2026

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Written by: Casey McDevitt

Alaska doesn't offer the strongest solar incentive programs out there. But that doesn't mean solar isn't worth it—especially if your electric bills are eating up a big chunk of your monthly budget.

Solar's real value isn't about rebates. It's about taking control of your electricity costs for the next 25-30 years. As utility rates continue their steady climb, locking in lower energy costs now can deliver substantial savings over time. Even without robust state programs, many Alaska homeowners with decent sun exposure and moderate to high electric bills find that solar still pays for itself. Here's how you may be able to lower your solar costs in Alaska—and whether it makes sense for your home.

Unfortunately, Alaska doesn't offer many incentives for solar. But if your electric bills are high, going solar can still make sense.

Alaska offers tax exemptions for solar panel systems. The solar sales tax exemption ensures that you won't have to pay a sales tax on your system, while the solar property tax exemption means you don't need to pay a higher property tax for adding solar panels to your house. 

Tax exemptionDescription

Alaska solar property tax exemption

If you use solar energy as a source of power and your municipality adopts this tax exemption, you won't need to pay a property tax on the value your solar panels add to your property. The average property tax in Alaska is 1.17%.

Alaska solar sales tax exemption

There’s no sales tax in Alaska, which saves you hundreds of dollars on your solar purchase.

If you connect your solar panel system to the grid, you can benefit from a solar buyback program known as net metering—arguably the best solar incentive of them all.

With net metering, your utility company works like a bank for solar power. If you make more solar power than your home can use at any given time, you can send that excess electricity back to the grid, and your utility company gives you an energy credit. When the sun isn't shining and you need to pull electricity from the grid, your utility draws against those credits. 

Depending on the weather, your energy use, and your solar setup, net metering makes it so you will owe very little, or even nothing, on your electric bill with solar panels.

Regulated electric companies in Alaska must support net metering for solar panel systems under 25 kW. There are a few nuances to keep in mind:

  • Credits can be carried forward indefinitely. At the end of every monthly billing cycle, if you’ve exported more solar power to the grid than you’ve used at home, you can keep your excess credits to cover future energy use. This allows you to save all those kWh produced in the sunnier months and apply them in the winter when your panels don’t produce as much electricity.

  • Carried-forward credits are worth the "non-firm power rate, ” AKA avoided cost rate. Excess generation credits are equal to what the utility avoids spending on fuel and operations to generate electricity. The exact rates you’ll receive depend on your utility company. 

Learn more about these net metering programs:

Golden Valley Electric Association (GVEA) Homer Electric Association Matanuska Electric Association Chugach Electric Association

Alaska doesn't offer any state-specific battery incentives. In Alaska, batteries can also boost energy independence and provide backup power during an outage. 

Learn more about battery incentives and rebates
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Solar panels are often worth it in Alaska due to the state's solid net metering programs and high electricity prices.

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