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RoofPayback

Solar panels in Alaska: payback, production and savings

In Anchorage, each kW of south-facing panels produces about 922 kWh a year, #51 of 51 states for sunshine. Homes in Alaska paid 28.83¢/kWh on average in July 2026 (#6 highest in the U.S.; national average 18.31¢), up 5.6% from a year earlier. Above-average power prices make every solar kWh worth more here.

Output by month (kWh per kW)

May is the best month (139 kWh) and Dec the weakest (8 kWh).

Jan: 14 kWhJanFeb: 35 kWhFebMar: 99 kWhMarApr: 120 kWhAprMay: 139 kWhMayJun: 137 kWhJunJul: 124 kWhJulAug: 111 kWhAugSep: 77 kWhSepOct: 41 kWhOctNov: 18 kWhNovDec: 8 kWhDec139

Example: 7 kW system, 10,500 kWh/yr home

Full net meteringCredit ½ retailCredit ¼ retail
Year-1 savings$1,860$1,402$1,172
Payback10.8 years13.9 years16.2 years
25-year net gain$35,984$22,094$15,149

Assumptions, not quotes: $21,000 installed ($3,000/kW), no incentives, 40% of use during daylight, power prices +2.5%/yr. Change them below.

How roof direction changes output in Alaska

kWh per kW per year, and the difference vs. south at 20°.

Facing20° pitch30° pitch
South922 (+0%)965 (+5%)
Southeast855 (-7%)875 (-5%)
Southwest893 (-3%)926 (+0%)
East731 (-21%)707 (-23%)
West781 (-15%)773 (-16%)
East-west (split)756 (-18%)740 (-20%)

What to check before going solar in Alaska

Run your own numbers in Alaska

Your roof
Your usage
Prices
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First-year savings

$1,860

Payback

10.8 years

25-year net gain

$35,984

Return (IRR)

8.7%

Production vs. use by month

6,452 kWh/yr produced · covers 31% of your use directly · 51% of output used on the spot.

Jan: 99 kWhJanFeb: 244 kWhFebMar: 691 kWhMarApr: 839 kWhAprMay: 976 kWhMayJun: 957 kWhJunJul: 867 kWhJulAug: 778 kWhAugSep: 536 kWhSepOct: 288 kWhOctNov: 124 kWhNovDec: 55 kWhDec976
Production Use

Which size pays off best?

Same usage and prices, only size changes. Best 25-year net gain: 12 kW.

kWCostYear-1 savingsPayback25-yr gain
3$9,000$79711.5 years$13,993
4$12,000$1,06311.1 years$19,491
5$15,000$1,32911.0 years$24,989
6$18,000$1,59410.8 years$30,486
7$21,000$1,86010.8 years$35,984
8$24,000$2,12610.7 years$41,482
10$30,000$2,65710.6 years$52,477
12$36,000$3,02710.8 years$62,484
Estimate based on NLR PVWatts and EIA data. See the methodology.

States with similar sunshine

Data: NLR PVWatts v8 (U.S. DOE National Laboratory of the Rockies, formerly NREL), TMY weather for Anchorage (61.22, -149.9), 14% losses, retrieved 2026-10-11. Prices: U.S. EIA Electric Power Monthly, Table 5.6.A (July 2026). Methodology.