Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. Co-op credits read September 29 to October 19, 2026. Updated October 19, 2026.
A typical Alaska home system is 7.77 kW and costs about $24,476 in cash at $3.15 per watt. At Chugach, Alaska’s largest co-op, it pays for itself in about 19.4 years, and at Golden Valley in about 11.4 years (simple payback before incentives). Power you use within the month saves the full price, 26.94¢ on average. Surplus left at the end of the month earns your co-op’s much lower credit.
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Alaska settles each monthly bill on its own. A kWh your panels make is worth one of two very different amounts, depending on whether you use it that month. Our cases use each co-op’s own price, its surplus credit and the share of solar output its members reported sending to the grid.
| Co-op and surplus credit | Share sent out as surplus | Yearly savings | Simple payback before incentives |
|---|---|---|---|
| Chugach, 6.553¢ (on bills from October 1, 2026, pending approval) | 26.6% | $1,264 | 19.4 years |
| Golden Valley, 13.726¢ (its rate from September 1 to November 30, 2026, used in our payback file) | 13.7% | $2,149 | 11.4 years |
Swipe the table sideways to see every column.
Each case values the co-op’s reported share of output at its surplus credit and the rest at its price for power. That share is what the co-op reported to EIA, not a reading from your meter, and a home that uses more of its output each month pays back sooner.
Four electric co-ops serve about 78% of Alaska’s home electric customers. The state rules are the same for all four. The credit for surplus is not, and each co-op resets it during the year.
Anchorage area, about 1 in 3 Alaska homes. On bills from October 1, 2026, pending approval by the RCA, which has until November 16, 2026 to rule; the last approved rate was 6.831¢. It changes with each quarterly cost-of-power adjustment. $270 to apply.
Next: ask Chugach for this quarter’s rate in writing.
Fairbanks and Interior Alaska, about 14% of homes. This rate runs September 1 to November 30, 2026. $65 to apply.
Next: ask which quarter’s rate the quote uses.
Mat-Su Valley and Eagle River, about 22% of homes. Its surplus rate resets each quarter and was not posted when we checked. No application fee.
Next: get this quarter’s rate from MEA in writing.
| Co-op | Credit per kWh of surplus | Rate period | Application fee | Share of Alaska homes |
|---|---|---|---|---|
| Golden Valley | 13.726¢ | Sep 1 to Nov 30, 2026 | $65 | about 14% |
| Chugach | 6.553¢ | From Oct 1, 2026; pending approval | $270 | about 1 in 3 |
| Matanuska | Ask MEA | Resets each quarter | None | about 22% |
| Homer | Ask HEA | Resets each quarter | Ask HEA | about 10% |
Swipe the table sideways to see every column.
Homer Electric Association (HEA) serves the Kenai Peninsula. It takes systems from 0.4 kW up to the 25 kW state limit and uses a surplus rate that can change each quarter. Its website did not load when we checked, so ask HEA for this quarter’s rate and any fee, in writing.
The state rules cover utilities whose rates the Regulatory Commission of Alaska (RCA) regulates. A stand-alone grid that sold less than 5,000,000 kWh in the past year is exempt, and so is one that runs fully on renewable power. Utilities outside the rules set their own terms, so ask yours before you buy.
Shares are of Alaska’s home electric customers in 2024 (EIA Form 861). The Railbelt is the connected grid that links the four big co-ops.
An Alaska co-op can stop taking new solar homes once its program is full. Ask yours, in writing, whether it still takes new homes before you sign.
Per home. The system must sit on your property and mainly cover your own use.
A utility may refuse new systems once they add up to 1.5% of its average demand. It can ask for more.
Both use a 5% limit. Homes already connected keep their place.
6,705 kW of 10,620 kW in its March 25, 2026 filing. The figure today is higher.
The RCA opened Docket R-24-003 in September 2024 to consider raising the limit. We could not confirm the outcome, and the published regulation still says 1.5%. We found no official source for the September 2026 deadline that older guides give.
The September 2026 benchmark, $0.26 above the US average. These are modeled cash prices, not quotes we collected.
| Size (kW DC) | Cash price | Power made a year |
|---|---|---|
| 4 kW | $12,600 | 3,828 kWh |
| 6 kW | $18,900 | 5,742 kWh |
| 7.77 kW (typical) | $24,476 | 7,436 kWh |
| 9 kW | $28,350 | 8,613 kWh |
Nothing lowers the purchase price of a home system in Alaska today. The money is on your bill: the power you no longer buy, and your co-op’s credit for surplus.
Alaska has no solar rebate for homes.
Alaska has no individual income tax, so there is nothing for a solar credit to reduce.
Not for a system you own placed in service after December 31, 2025.
A borough or city may exempt home solar, but only by its own ordinance. Ask your assessor. The law does not name batteries.
Listed A to Z, not ranked. Facts from their own sites and Alaska state records, read October 13 to 16, 2026.
None of the three publishes a workmanship warranty or a warranty for roof leaks at the panel mounts. Ask for both in writing, and for a current Alaska license number.
Ask each installer to name your co-op’s surplus credit and show output month by month.
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CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyVerified Installer methodology
