All states · Alaska
Updated August 2026 · rank 2 of 50
Only for some homeowners
6 kW system · $17,100 after incentives · $1,386 saved in year one
0 yrs25 yrs
12.9 years is long enough that the answer depends on your own situation rather than the state average. It improves sharply if your bill is above average, your roof faces south with no shade, or you can install for less than $2.85 a watt.
At 28.2¢ per kilowatt-hour, Alaska pays 71% more for electricity than the US average of 16.5¢. High rates are the main engine of a short payback: every kilowatt-hour the roof makes displaces an expensive one.
A 6 kW array in Alaska produces about 5,532 kWh a year, below the national middle. That is not disqualifying — Germany installs solar at lower irradiance than any US state — but it does mean the rate you pay for grid power matters more here than the weather does.
Alaska offers little or no net metering. Exported power earns about 7.1¢ against a 28.2¢ retail rate, so power you send to the grid is worth a quarter of what you buy. The practical consequence: a smaller system that you consume almost entirely at home pays back faster than a large one, which is the opposite of the advice given in full-net-metering states.
Alaska has no state-level rebate or tax credit at present, so the $17,100 installed price is what you pay. With Section 25D gone, there is nothing federal to subtract either — this is the first year in over a decade where that is true.
A 6 kW system — the size that suits most Alaska households — runs about $17,100 installed, at $2.85 a watt before anything comes off. Nothing comes off that here: no state rebate, no state tax credit, and no federal credit since Section 25D expired on 31 December 2025. Prices move with roof complexity, panel choice and how busy local installers are — a quote $0.40 a watt either side of this is normal. Smaller systems cost more per watt; larger ones less, though a bigger array is worth less here because exports earn only 7.1¢.
| System size | 6 kW |
|---|---|
| Annual production | 5,532 kWh |
| Installed cost | $17,100 |
| Incentives | none |
| Net cost | $17,100 |
| Electricity rate | 28.2¢ / kWh |
| Export credit | 7.1¢ / kWh |
| Year-one saving | $1,386 |
| Break-even | 12.9 years |
| 25-year gain | $24,601 |
Out of 50 states, Alaska ranks 2 for how quickly a bought system repays itself. Fastest right now: Hawaii, Nevada, Kansas, Iowa. Slowest: Nevada, Kansas, Iowa, Oregon. Compare all 50 on the map.
Only for some homeowners. A 6 kW system breaks even in 12.9 years on our assumptions, after the 30% federal tax credit expired on 31 December 2025.
About $17,100 installed for a 6 kW system at $2.85 a watt. Nothing comes off that in Alaska — no state rebate, no state credit, and no federal credit since Section 25D expired. A system sized to your own daytime use will cost less and still pay back faster here, because exports only earn 7.1¢.
About $1,386 in year one on a 5,532 kWh system, and more each year after that as Alaska electricity rates climb. Almost all of that comes from power you use as it is made — at 7.1¢, exporting is worth little.
Alaska offers little or no net metering.
Production from NREL PVWatts v8 for the largest metro in Alaska, south-facing at 20°. Electricity rate from the EIA. Export credit from the state's net metering rule. The break-even figure adds 0.5% panel degradation a year, 3% annual electricity rate rises, $150 a year of upkeep and an inverter replacement in year 12. Federal credit set to $0 — Section 25D expired 31 December 2025. Exports and imports are netted over the monthly bill, so about 85% of production cancels out at the full retail rate before any surplus is paid at the export rate - which matters more here than the export rate itself. Full method and sources. Export terms checked against the state source, 2026-08-11.
Estimates for comparison, not a quote. Your roof, shading, usage pattern and installer pricing will move these numbers. Get at least three quotes.