All states · Alaska
Updated October 2026 · ranks 22 of 50
Only under favorable conditions
6 kW system · $17,100 after incentives · $1,415 returned in year one
0 yrs25 yrs
At 12.7 years the outcome depends more on individual circumstances than on the state average. It shortens appreciably with above-average consumption, an unshaded south-facing roof, or an installed price below $2.85 a watt, and lengthens with the opposite.
The answer depends on the individual property rather than the state average. At 12.7 years, shading or below-average consumption can move the outcome materially in either direction.
The case modeled here approximates an average Alaska household on the state average rate of 28.8¢, with an unshaded roof and no financing: $17,100 of capital, $1,415 returned in the first year, and break-even near year 12.7. Above-average consumption, a south-facing roof or a competitive installed price shorten that period; shading, a loan carrying a dealer fee, or a sale within six years lengthen it. Because exports earn only 7.2¢, daytime occupancy carries measurable value: a household absent between nine and five performs appreciably worse than this figure.
At 28.8¢ per kilowatt-hour, Alaska pays 75% more for electricity than the United States average of 16.5¢. A high retail rate is the principal driver of a short payback, since each kilowatt-hour generated displaces an expensive one.
A 6 kW array in Alaska generates approximately 5,532 kWh a year, below the national median. This is not disqualifying - Germany installs solar at lower irradiance than any US state - but it means the retail electricity rate matters more here than the weather does.
Alaska provides little or no net metering. Exported power earns approximately 7.2¢ against a retail rate of 28.8¢, roughly a quarter of its purchase price. The practical consequence is that a smaller system, consumed almost entirely on site, repays faster than a large one - the reverse of the position in full-net-metering states.
Alaska offers no state rebate or tax credit at present, so the installed price of $17,100 stands. With Section 25D expired there is no federal credit to deduct either, the first year in over a decade in which that has been the case.
A 6 kW system, the size typical of Alaska households, costs approximately $17,100 installed at $2.85 a watt before deductions. No deduction applies in Alaska: there is no state rebate, no state tax credit, and no federal credit following the expiry of Section 25D on 31 December 2025. Prices vary with roof complexity, equipment selection and local installer demand; quotes $0.40 a watt either side of this figure are common. Smaller systems cost more per watt and larger ones less, although a larger array is worth less here, since exports earn only 7.2¢.
| System size | 6 kW |
|---|---|
| Annual production | 5,532 kWh |
| Installed cost | $17,100 |
| Incentives | none |
| Net cost | $17,100 |
| Electricity rate | 28.8¢ / kWh |
| Export credit | 7.2¢ / kWh |
| Year-one saving | $1,415 |
| Break-even | 12.7 years |
| 25-year gain | $25,605 |
Of the 50 states published here, Alaska ranks 22nd for how quickly a bought system repays itself. Fastest right now: Hawaii, New York, Illinois, Massachusetts. Slowest: South Dakota, Louisiana, North Dakota, Tennessee. Compare them all on the map.
Alaska shares no land border with another state. These are the states whose break-even period is closest to it, which makes them the useful comparison even though the conditions behind the figure differ.
About $17,100 installed for a 6 kW system at $2.85 a watt. No deduction applies in Alaska: no state rebate, no state credit, and no federal credit following the expiry of Section 25D. A system sized to daytime consumption costs less and repays faster here, because exports earn only 7.2¢.
Only under favorable conditions. A 6 kW system breaks even in 12.7 years on the assumptions used here, following the expiry of the 30% federal tax credit on 31 December 2025.
Approximately $1,415 in the first year on a 5,532 kWh system, rising thereafter as Alaska electricity rates increase. Almost all of that derives from power consumed as it is generated; at 7.2¢, export earns little.
A 6 kW array is about 14 modules at 430 W and generates 5,532 kWh a year here, which covers a household using roughly that much. Sizing beyond on-site use is poor value in Alaska, since the surplus earns 7.2¢ against a 28.8¢ retail rate. The sizing calculator works it out from a bill.
Only under favorable conditions. The retail rate here is 28.8¢ against a national average of 16.5¢, exports earn 7.2¢, and a 6 kW system breaks even in 12.7 years. What separates Alaska from states with similar sunshine is the rate and the export tariff, not the weather.
Alaska provides little or no net metering.
Generation is taken from NREL PVWatts v8 for the largest metropolitan area in Alaska, south-facing at 20°. The retail rate is from the EIA and the export credit from the state's net metering rule. The break-even figure incorporates 0.5% annual panel degradation, 3% annual electricity price growth, $150 a year in maintenance and an inverter replacement in year 12. The federal credit is set to $0 — Section 25D expired 31 December 2025. Imports and exports are netted over the monthly billing period, so approximately 85% of generation offsets consumption at the full retail rate before any surplus is compensated at the export rate. This has a larger effect on the result than the export rate itself. Full method and sources. Privacy. Export terms checked against the state source in August 2026.
These are estimates for comparison between states, not quotations. Roof orientation, shading, consumption pattern and installer pricing all affect the result. At least three written quotations are advisable before purchase.