What solar incentives are available in Alaska?
The solar incentives in Alaska are net metering for systems up to 25 kW, property tax exemption, and no statewide sales tax.
2026 Alaska Solar Incentives
Alaska’s long summer days deliver some of the strongest seasonal sunlight in the country, and with the highest residential electricity rates in the nation (often 25 cents per kWh or more), the case for going solar is really about taking control of those costs. While Alaska’s solar market is still developing, homeowners and businesses can take advantage of several incentives and programs that help reduce the cost of going solar.
Table of Contents
Federal Investment Tax Credit (ITC)
Commercial solar energy systems installed in Alaska can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met.
Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026.
Commercial Depreciation
Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years.
The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:
- Project cost = $800,000
- 30% credit = $240,000
- Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000
A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off.
Net Energy Metering (NEM)
Net metering is a billing arrangement that credits solar owners for the excess electricity they generate. When your panels produce more energy than your home is using, the surplus is fed back into the grid and credited to your account, helping offset future electricity consumption. In Alaska, this is especially valuable: the credits don’t expire, so powering your system banks during the long summer days can be applied against your winter bills when production drops off.
Net metering is available for systems up to 25 kW, and excess generation is credited at the utility’s “non-firm power rate,” essentially its avoided cost of producing that energy. The program is supported by utilities including Golden Valley Electric Association (GVEA), Chugach Electric, Matanuska Electric (MEA), and Homer Electric. Exact rates vary by utility and are adjusted periodically, so check the current rate with your electric provider before building it into your savings math.
Property Tax Exemptions for Solar
Alaska offers a property tax exemption for renewable energy systems, including solar installations. Solar typically raises a home’s value, but this exemption means that 100% of the added value won’t increase your property taxes. And because Alaska has no statewide sales tax, solar equipment generally isn’t taxed at the state level either, though local sales taxes may apply depending on where you live.
Utility Rebates and Local Programs
Beyond statewide policy, individual utilities offer their own programs. In the Fairbanks area, GVEA’s Sustainable Natural Alternative Power (SNAP) program lets renewable producers up to 25 kW sell power back to the utility at up to $1.50 per kWh through an annual revenue-share program. Because the pool is funded by member contributions, the actual payout typically runs below that cap, but it’s a meaningful added incentive for Interior Alaska.
The Alaska Energy Authority (AEA) also administers state energy programs, including a net metering incentive payment structure designed to increase compensation for net metering customers. Program availability shifts year to year, so it’s worth checking the current status with AEA and your local utility. Worth noting: Alaska does not operate an SREC market, and there is no state-specific battery storage rebate, so for storage, the value comes from resilience, backup power, and avoiding high delivered fuel costs rather than from an upfront incentive.
Further information and current programs can be found at the Database of State Incentives for Renewables & Efficiency (DSIRE): https://programs.dsireusa.org/system/program
2023 Alaska Solar Incentives
The State of Alaska has very limited programs for conversion to solar power systems at this time. However, the federal government does offer many programs to help offset the costs.
Summary of Alaska Incentive Programs
•Federal Tax Credit 30%
•State Grants Available
•Production Incentive $1.5 kWh
Alaska does have a grant program available through the Renewable Energy Grant Program. These grants are for local governments, tribal governments, commercial and utility applications, in various amounts depending on the project.
Alaska’s SNAP program (Sustainable Natural Alternative Power) offers production incentives to all sectors in the amount of $1.5 kWh produced and fed into the grid.
Financing Options
The state offers loans for photovoltaic systems in the form of the Power Project Loan Fund, in varied amounts. Additionally, there are numerous financing sources available through the federal government.
Further information can be obtained by visiting DSIRE:Database of State Incentives for Renewables & Efficiency.
We make every effort to keep this information current, but incentive programs, funding levels, and eligibility requirements may change over time. Please verify details with your solar company before making decisions. Suggest an edit: marketing@solarinsure.com
