Solar Payback Calculator

State guide

Solar payback in Alaska (AK) — 2026

How Alaska compares with the other 50 records in this dataset
MeasureAlaskaDataset medianRank of 51
Avg residential rate24.2¢/kWh14.8¢/kWh7th highest
Annual insolation3.0 kWh/m²/day4.6 kWh/m²/day51st highest
Modeled payback13.3 years13.5 years21st fastest

Rates from the EIA; insolation from NREL's NSRDB. Ranks and medians are computed across the 50 states and DC covered by this site. Payback is modeled for a 7 kW system at $3.20/W with no federal credit applied — see the disclaimer for the full assumption set.

Alaska pays about 24.2¢ per kilowatt-hour for residential electricity and receives about 3.0 kWh per square metre per day of sunlight — 7th and 51st respectively among the 50 states and DC tracked here. Those two numbers set the ceiling on what rooftop solar returns in Alaska, and they point in opposite directions.

Where Alaska sits against the rest of the country

Alaska is 9.4¢/kWh above the median residential rate across this dataset (14.8¢/kWh) and 1.6 kWh/m²/day below the median insolation (4.6 kWh/m²/day). Under this site's standard assumptions, that combination puts Alaska 21st of 51 for modeled payback speed, at 13.3 years against a dataset median of 13.5 years.

What actually drives payback in Alaska

Alaska is rate-led: upper half of the dataset for electricity price (7th), lower half for sunlight (51st). Swap Alaska's sunlight for the dataset median and payback moves to 9.1 years (4.1 years of swing). Swap its electricity rate instead and payback moves to 19.9 years (6.6 years of swing). The rate swap is the larger of the two, so what a kilowatt-hour costs is the input deciding the outcome in Alaska.

State incentives on record

Recorded for Alaska: Alaska Energy Authority renewable energy fund (project-scale); residential solar limited by low insolation and high latitude.

No federal credit is applied above (Section 25D expired 31 December 2025), and export terms often matter more than the headline rate (net metering guide).

The modeled system, in numbers

At Alaska's sunlight level a 7 kW array produces roughly 5,979 kWh a year, worth about $1,447 in first-year bill savings at 24.2¢/kWh against an assumed $22,400 installed cost. A ten-year payback at this sunlight level would require a residential rate of about 33.5¢/kWh, which is 9.3¢ above what Alaska households pay today.

States with comparable economics

Alaska's closest analogues by modeled payback are Georgia (13.3 years), Wisconsin (13.4 years), Delaware (13.1 years). They arrive there from different rate and sunlight combinations, so their incentive rows are the useful comparison.

Estimate your solar payback

Enter your ZIP and the system size you're considering. We'll pull your state's average residential electricity rate and an annual sun-hour figure to estimate production and break-even years.

Estimate only — not a quote. Verify with a licensed installer and your utility. Federal Section 25D 30% credit is not included (expired 2025-12-31). Not tax advice — consult a tax professional.

State (AK)
Alaska
Avg residential electricity rate
24.2¢ / kWh
Estimated annual production
5,979 kWh
Year 1 bill savings
$1,447
Estimated payback
13.3 years
Installed cost before incentives*
$22,400

*A $3.20/W installed cost assumption valued against your state's average residential electricity rate (EIA, most recent 12-month average available as of 2026 Q1). No federal, state, or utility incentive is deducted from this figure — state incentives that may reduce it are listed on your state page for details.

Estimate only. Numbers shown are modeled projections, not quotes or guarantees. Actual production, electricity rates, financing terms, and available incentives vary by household, utility, roof condition, shading, and policy changes. The Residential Clean Energy Credit (Section 25D, the 30% federal tax credit) expired for systems placed in service after December 31, 2025. Verify all numbers with a licensed installer and your utility before making a purchase decision. See full disclaimer.
Advertisement
Ad space (state-AK-mid)

Run the math for your specific ZIP

Enter your ZIP on the home page calculator, or jump directly to a ZIP-level estimate that uses the NREL PVWatts model for your nearest weather station.

← Back to home calculator