Solar panels in Anchorage: what they cost and what they make
A typical Anchorage home needs 19 solar panels. They would make about 7,054 kWh a year and cost $20k to $30k before incentives. At today's electricity prices they pay for themselves in about 12.3 yrs.
See panels on your own Anchorage roof
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What solar costs in Anchorage
At $3.00 a watt, the median price cash buyers pay nationally, a 8.0 kW system costs about $24,000. Quotes in Anchorage will usually fall between $20,000 and $30,000. Complex roofs, main-panel upgrades and financing push prices up.
The 30% federal tax credit no longer applies to systems homeowners buy. This estimate includes no state or utility incentives; check with your utility before you buy.
The number that decides whether solar pays in Anchorage is what your utility pays for the power you send back. Under full payback is about 12.3 yrs. Under net billing it is about 20.0 yrs, because only the ~43% of solar a typical home uses as it is made saves the full retail price.
Cash purchase, prices rising 2.5% a year, panels losing 0.5% a year, $25/kW a year for upkeep. No federal credit for homeowner-owned systems.
Every way to pay for a 8.0 kW system in Anchorage
Change any number →| Way to pay | Day one | Monthly payment | Monthly net, year 1 | Ahead after 25 years |
|---|---|---|---|---|
| Pay cash Full price on install day | $24,000 | $0 | +$143 | $32k |
| Credit-union loan 8% APR, 20 years, no dealer fee | $0 | $201 | −$58 | $7,900 |
| “1.99%” solar loan 1.99% APR, 25 years, 25% dealer fee | $0 | $127 | +$16 | $18k |
| Lease $135/mo, +2.9%/yr | $0 | $135 | +$24 | $2,800 |
| Power purchase (PPA) 23.0¢/kWh, +2.9%/yr | $0 | $135 | +$24 | $6,500 |
Under net metering, at 27.1¢/kWh rising 2.5% a year. The “1.99%” loan’s $6,000 dealer fee is included in its payments. Lease and PPA prices are typical offers, not quotes.
How much sunshine Anchorage gets
kWh per kW, 25° southMay is the best month for solar in Anchorage, and Dec the weakest: a Dec day makes 7% of a May day. A 6 kW system would make about 53 kWh in Dec and 771 kWh in May.
On June 21 the sun rises at 4:18 am and sets at 11:39 pm, 19 hours 22 minutes of daylight. On December 21 it is up from 10:11 am to 3:39 pm, just 5 hours 28 minutes.
Peak sun hours in Anchorage, month by month
| Month | Flat ground | Panels at 52° | kWh per kW |
|---|---|---|---|
| Jan | 0.3 | 1.1 | 18 |
| Feb | 0.9 | 2.2 | 39 |
| Mar | 2.4 | 4.2 | 91 |
| Apr | 3.9 | 4.8 | 113 |
| May | 4.8 | 4.9 | 129 |
| Jun | 5.2 | 5.0 | 127 |
| Jul | 4.7 | 4.6 | 119 |
| Aug | 3.7 | 4.1 | 101 |
| Sep | 2.4 | 3.3 | 73 |
| Oct | 1.1 | 2.1 | 43 |
| Nov | 0.4 | 1.3 | 23 |
| Dec | 0.2 | 0.5 | 9 |
| Year | 2.5 | 3.2 | 884 |
A peak sun hour is one hour of sunlight at 1,000 W per m². Why sites disagree.
The best angle and direction for panels in Anchorage
| Roof faces (6/12 pitch) | Output vs south | kWh per kW |
|---|---|---|
| South | 100% | 884 |
| Southeast | 94% | 831 |
| Southwest | 94% | 831 |
| East | 80% | 707 |
| West | 80% | 707 |
| North | 60% | 530 |
Face panels south and tilt them 52° for the most energy over a year. East and west roofs keep about 80% of that. A north-facing roof keeps 60%, which is rarely worth the money. Try other angles.
Where the sun goes over Anchorage
The noon sun is lower in winter, which is why the best winter tilt (80°) is steeper than the best summer tilt (28°).
Anchorage's homes
Anchorage has 108,597 households. 63.9% own their home, and 58,747 of those owners live in single-family houses, the kind of home that usually gets rooftop solar.
The median home here was built in 1982. Many roofs that age are due for replacement. Replace the roof first, then add solar: taking panels off and putting them back later costs thousands.
16.1% of homes heat with electricity and 78.7% with gas. If you switch to a heat pump or an electric car, plan for more panels or leave room on the roof.
Source: U.S. Census Bureau, American Community Survey 2020–2024 5-year estimates.
If the power goes out in Anchorage
Solar panels alone shut off in a blackout. Add a battery and they keep going. One Tesla Powerwall 3 (13.5 kWh) running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day):
Change the appliances, the battery and the weather in the battery calculator.
Questions people ask about solar in Anchorage
How much do solar panels cost in Anchorage?
A 8.0 kW system — enough for the average Alaska home — costs about $20,000 to $30,000 before incentives, based on $2.50–$3.75 per watt. The 30% federal credit no longer applies to systems homeowners buy.
How many solar panels does a house in Anchorage need?
About 19 panels of 420 watts for a home using 578 kWh a month, the Alaska average. Each kilowatt of panels here makes about 884 kWh a year on a south-facing roof.
Is solar worth it in Anchorage?
Over 25 years, solar power here costs about 17.4¢ per kWh, against 27.1¢ from the grid today. Payback is about 12.3 yrs if your utility credits exported power at the full retail rate, and 20.0 yrs if it pays about 30% of retail.
How many peak sun hours does Anchorage get?
3.2 a day on panels tilted to 52°, and 2.5 on flat ground. The best month is Jun; the weakest is Dec.
What is the best angle for solar panels in Anchorage?
52° for the most energy over a year, facing south. 80° is best in winter and 28° in summer. On a normal pitched roof, anything within 15° of 52° gives you about 95% of the maximum.
How long would a home battery last in a Anchorage power outage?
A Tesla Powerwall 3 running a fridge, freezer, furnace fan, lights, Wi-Fi, TV and microwave (6.9 kWh a day) lasts about 43 hours with no sun. With 7 kW of solar to recharge it, it lasts about 52 hours in overcast January.
Solar near Anchorage
| City | Miles | kWh per kW | Sun hours |
|---|---|---|---|
| Bellingham, WA | 1,349 | 1,135 | 4.0 |
| Marysville, WA | 1,394 | 1,166 | 4.1 |
| Everett, WA | 1,399 | 1,164 | 4.1 |
| Shoreline, WA | 1,406 | 1,148 | 4.1 |
| Bothell, WA | 1,409 | 1,163 | 4.1 |
Cities with the same sunshine as Anchorage
These far-away cities get almost exactly as much solar energy per panel.
- Lakewood, WA 1,128 kWh per kW
- Bellingham, WA 1,135 kWh per kW
- Seattle, WA 1,145 kWh per kW
Snow: NASA records about 100 cm of snow on the ground here in an average January. Covered panels make little until it slides off, and these figures (like PVWatts') don't subtract that.
Sources: NASA POWER 2001–2020 monthly climatology (grid cell 38 km from Anchorage's Census point), our PV model (within 1.6% of NLR PVWatts® on average), U.S. EIA prices and use, U.S. Census 2025 population estimates and ACS 2020–2024. Estimates for an average home, not a site survey. How we calculate.