The opportunities for solar in Alaska

The cost of utility-scale solar photovoltaic (PV) power has decreased by eighty-nine percent over the last decade and it is now the second cheapest electricity on the planet, according to the research firm Lazard. This precipitous drop in cost, along with successful community efforts such as Solarize Anchorage and Solarize Fairbanks, have created a rapid increase in residential rooftop solar PV in Alaska over the last several years.

Although Alaska’s high latitude presents the challenge of having minimal solar energy during three or four winter months, the decrease in solar costs, federal tax incentives and the ability to sell excess power back into the grid (net meter) has made solar an attractive investment for many Alaskans in the Railbelt. Solar generation in the spring and fall is often impressive in northern latitudes where clear skies, cool temperatures, dry air and bright, reflective snow all support solar generation. Solar photovoltaic systems can actually exceed their rated output during these times of year.

Decreasing cost continues to drive consumer interest and the industry throughout the country. In 2018, more than 250,000 people worked in the solar industry in the U.S., more than double the number in 2012.

In rural Alaska, integrating intermittent solar electrons into small, islanded grids can be challenging if not properly planned and managed.

For projects that are not being developed by the local utility, it is critical that developers work closely with the utility to ensure proper integration into the local grid. Off-grid applications such as remote fish camps, lodges and cabins, can be ideal applications for solar PV.  

The Native Village of Hughes recently installed a 120 kW solar photovoltaic system. The project is being developed to help advance the community’s renewable energy goal of 50 percent by 2025. When the project is completed it will be the largest solar project in a small rural community in the state. 

There’s been an 89% decrease in the national average cost of solar PV installations since 2010.

On the Railbelt, two noteworthy solar projects have been added since 2018.

The first is a 563 kW project owned by Golden Valley Electric Association in Fairbanks. The other is a 1 MW solar field built along the Parks Highway in Willow by Renewable IPP, an independent power producer. It is the largest solar project in the state and sells power to Matanuska Electric Association at wholesale rates. 

As the cost of solar PV continues to plummet, it is becoming a more attractive option for homeowners and businesses. Federal tax incentives and net metering, paired with the economy-of-scale provided by the Solarize Anchorage campaign, has motivated a historic number of Anchorage residents to invest in rooftop solar, with more than 150 systems added to rooftops across the city between 2017 and 2018. This trend is consistent with consumer interest elsewhere in the country, and is expected to continue growing throughout the state. 

“Solar thermal” heating systems use pumps or fans to move energy to a point of use, such as a domestic hot water tank. Typical homes demand a large amount of fuel year-round for domestic hot water, so using the sun to heat water for even seven or eight months a year can save significant amounts of energy.

A larger role for solar thermal hot water systems in Alaska is emerging as heating systems advance – allowing solar-heated fluid to supply in-floor systems currently heated by fuel boilers.

In Alaska, careful building design and construction can minimize the use of heating fuel. “Passive solar” design includes proper southern orientation and the use of south-facing windows that transfer the sun’s energy into the building through natural processes of conduction, convection and radiation. Passive solar design employs windows, thermal mass and proper insulation to enable the building itself to function as a solar collector.

Related Resources

RailbeltRenewable TechnologiesRural AlaskaSolar