Even living in northern areas, you can still save money on your electricity bills with solar panels. To cut down on the upfront costs of a PV system, take advantage of solar incentives in Alaska.
Key takeaways
- While not at the top of the solar ratings, Alaska is still a good state to generate clean electricity from solar power. And several commercial and residential solar incentives, loans and rebates can reduce the high price of your project and make the purchase of PV systems even better for average Alaska residents.
- Federal Tax Credit (ITC) allows a 30% tax credit on the total cost of solar panel installation, including installer’s work.
- Homeowners can benefit from net metering. Renewable energy systems up to 25 kW are eligible. Net excess generation is credited by the service company monthly at the "non-firm power rate." Credits do not expire.
- Sustainable Natural Alternative Power (SNAP) Program (GVEA) offers incentive payments for renewable energy generators. Systems limited to 25 kW or less. SNAP: Payment based on system production, separate meter required, annual payout (max $1.50/kWh). SNAP Plus: Annual payment and monthly credit for net excess generation.
- Property Tax Exemption for Renewable Energy Systems offers a 100% exemption on added property value from solar PV systems. Property value increases by approximately 4%.
- Solar Easements are voluntary written agreements between property owners to protect solar access. Protects against shading from vegetation or structures. Must contain description of protected space, restrictions, and revision/termination clauses.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
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Get quotesSell excess electricity with net metering program
Renewable energy systems with a capacity up to 25 kilowatts (kW) are eligible for net metering. The program gives households an opportunity to send any excess electricity back to the grid instead of storing it with batteries. Net excess generation is reconciled monthly, with the utility crediting the customer-generator’s account for the excess kWh generation multiplied by the “non-firm power rate.” These dollar amount credits do not expire and can be applied to subsequent monthly bills. Check the rates and conditions with your electric supplier.
Golden Valley Electric Association’s (GVEA) SNAP program encourages members to install renewable energy generators and connect them to the utility’s electrical distribution system by offering an incentive payment based on the system’s production on a dollar per kilowatt-hour ($/kWh) basis. GVEA limits these resources to 25 kilowatts of capacity or less per system.
There are two different SNAP programs available:
SNAP producers are paid once a year around Earth Day and the maximum incentive is $1.50/kWh.
Freeze your property tax with Property Tax Exemption for Renewable Energy Systems
In Alaska, you don’t have to pay any extra taxes for having solar panels. According to state laws, 100% of the value added as a result of acquiring a solar PV system shall be exempt from taxation.
4%
this is how much solar panels increase the value of your house
Protect your solar panels from shade with Solar Easements
Alaska’s solar easement provisions are similar to those in many other states. They do not create an automatic right to sunlight. Rather, they allow parties to voluntarily enter into solar easement contracts for the purpose of ensuring adequate exposure of a solar energy system.
A solar easement contract is a written agreement between two property owners, for example, you and your neighbor. This type of contract helps to maintain a stable supply of sunlight for your PV modules. A solar easement guards your panels from potential impairments, such as vegetation and structures. It is voluntary and must contain the description of protected space, a list of restrictions and a clause on revision or termination of the contract. Any such agreement must be created in written form and must meet the general requirements for easements on real property.
Top 10 myths about solar
Okay, let's talk about solar panels and get rid of some of the wrong ideas people have about them. Many people are curious about using solar power, but some stories they hear might make them unsure. Knowing the real facts will help you decide if solar panels are a good choice for your home.
1. Myth: Solar panels only work where it's always super sunny
Real Talk: It's true that solar panels work best when they get a lot of direct sunlight. But they don't need the sun to be blazing hot all the time. Solar panels turn daylight into electricity, not just bright sunshine. That means they can still make power even when it's cloudy, though they won't make as much. Also, the newest solar panels are made to work well in lots of different temperatures. In fact, they can sometimes work a little better when it's cool. So, whether you live in a place with lots of sunshine or a place with lots of clouds, solar power can still be helpful.
2. Myth: Putting in solar panels costs way too much
Real Talk: It might seem like it costs a lot of money to put in solar panels at first. But you need to think about the money you'll save over many years. The price of solar panels has gone down a lot lately, so they're more affordable now. Also, there are programs that can help you pay for them. The government might give you money back or let you pay less in taxes. And, solar panels can make your electricity bill much smaller, or even disappear completely. Over the long time that solar panels last, usually 25 years or more, the money you save can be much more than what you paid to put them in. Also, if your system is connected to the electric grid, you can sometimes sell extra power back to the electric company, which saves you even more money.
3. Myth: You have to fix solar panels all the time
Real Talk: Solar panels don't need a lot of fixing. They don't have parts that move, so they don't break down very often. Usually, all you need to do is clean them every now and then to get rid of dirt or dust that might block the sunlight. In many cases, rain will clean them for you. And, the newest solar panels are made to handle bad weather, like hail, snow, and strong winds, so you don't have to worry about them breaking easily.
4. Myth: Solar panels will mess up my roof
Real Talk: If someone who knows what they're doing puts the solar panels on your roof correctly, they won't damage it. Good installers use special ways to put the panels on safely and make sure no water can get in. Sometimes, solar panels can even help protect your roof from the weather.
5. Myth: Solar panels don't make enough power to be worth it
Real Talk: Solar panels are much better at making electricity now than they used to be. It's true they can't turn all the sunlight into electricity, but they can turn a lot of it. And scientists are always working to make them even better. This means solar power is becoming more and more useful.
6. Myth: If I get solar panels, I won't need the electric company anymore
Real Talk: For most people, putting in solar panels means connecting them to the electric grid. This lets you use electricity from the electric company when your solar panels aren't making enough, like at night or when it's cloudy. And when your solar panels make more power than you need, you can often sell it back to the electric company. You would need very expensive batteries to store enough power to completely disconnect from the electric company.
7. Myth: Putting in solar panels takes forever and is super hard
Real Talk: Putting in solar panels is usually not too hard, especially if you have people who know what they're doing to help you. From getting the papers you need to putting the panels on your roof and connecting them to your house's electricity, it usually only takes a few days. Professional installers take care of all the difficult parts.
8. Myth: Solar panels look ugly
Real Talk: Older solar panels might have looked big and not very nice, but the newest ones look sleek and good. Many companies make solar panels that blend in well with different styles of houses. You can also put solar panels on the ground if you don't want them on your roof.
9. Myth: If you rent your house, you can't use solar power
Real Talk: While people who rent usually can't put solar panels on their own roofs, they can still use solar power through community solar programs. These programs let you pay to use part of a big solar farm, and you get money off your electricity bill.
10. Myth: It's hard to sell your house if you have solar panels
Real Talk: Studies have shown that houses with solar panels often sell for more money and faster than houses without them. Solar panels are seen as a good thing to have, and they can make your house more attractive to people who want to buy it.
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SHOP SOLAR PANELSYears of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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