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Home solar in Alaska

Alaska has very high power prices, but net metering credits exports only at a low non-firm (avoided cost) rate; a state pilot started in 2025 can top that up toward retail through June 30, 2028, if your utility joins and funds last.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

29.4¢average home price per kWh (EIA, August 2026)
Solar can workPower costs about 29 cents/kWh, so solar you use yourself saves a lot, but exports earn roughly a third of retail unless your utility is in the AEA pilot. Winter sun is very short.

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Net metering Net metering available

RCA rules (3 AAC 50.900–50.949, in effect 2010) require regulated utilities to offer net metering for systems up to 25 kW. Excess power is credited on your next bill at the utility's non-firm power rate, an avoided-cost rate far below retail. A utility may refuse new hookups once net-metered capacity passes 1.5% of its average retail demand, unless it sets a higher limit. Bills in 2026 to require full retail credits (SB 150 / HB 164) were still in committee in spring 2026. Source

  • 2010-06-16: RCA net metering rules take effect
  • 2026-02: SB 150 / HB 164 retail-rate net metering bills heard
  • 2028-06-30: AEA net metering incentive pilot ends (or sooner if funds run out)

Solar credits (SRECs) No market

Alaska has no renewable portfolio standard and no SREC market.

Rebates and incentives

AEA Net Metering Incentive Payment Pilot Program

Tops up export credit to the full retail energy rate (difference paid per exported kWh via your utility)

Residential net-metering members of utilities that sign up with AEA; not community energy subscribers

open performance payment Source

Taxes

Property tax: Local: Alaska has no state property tax; any exemption depends on your borough or city.
Sales tax: Local: no state sales tax; some cities and boroughs charge their own.

Solar laws

  • 3 AAC 50.900–50.949, RCA net metering rules (2010). Net metering for systems up to 25 kW, credited at the non-firm power rate; 1.5% of average retail demand cap unless the utility raises it. Source
  • SB 150 / HB 164 (34th Legislature) (2026). Would require Railbelt utilities to give annual 1:1 retail credits with a state reimbursement fund. Still in committee as of spring 2026; not law as far as found. Source
  • SB 152 (2024), community energy (2024). Created a framework for community solar with RCA-regulated utilities; the RCA was still taking comments on rules in October 2025.

Community solar

Authorized by a 2024 law, but no RCA-approved program confirmed as open yet.

Timeline

  1. RCA approves net metering rules
  2. Net metering rules take effect
  3. SB 152 community energy law signed
  4. AEA Net Metering Incentive Payment pilot launched
  5. RCA issues proposed community energy rules for comment
  6. Federal 30% homeowner tax credit (25D) ends
  7. Governor backs retail-rate net metering bill (SB 150)

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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