Solar energy in Alaska may seem counterintuitive to some. How can a state known for long, dark winters meaningfully benefit from the sun? Yet the growth of solar generation in Alaska over the past several years has demonstrated that solar energy—when thoughtfully planned and properly integrated—can play a role even in the nation’s northernmost state.

According to Environment America, Alaska produces six times more solar energy than it did in 2019. In 2023 alone, the state generated 24 gigawatt-hours of solar energy—more than all solar generation produced prior to 2021 combined. These figures underscore a clear trend: solar development in Alaska is accelerating.

That momentum has not gone unnoticed by the members of Chugach Electric Association. As Alaska’s largest electric utility—serving more than 90,000 members across more than 113,000 service locations—Chugach has seen steadily increasing interest in solar energy. That interest culminated in 2025 with the successful launch of Alaska’s first community solar project.

At its core, the Chugach Community Solar Project reflects growing member interest in accessible, locally generated renewable energy and the cooperative’s commitment to meeting that interest in a deliberate, thoughtful way, while also moving toward its own decarbonization goals. Program enrollment opened in April 2025, giving members the opportunity to voluntarily subscribe to energy produced from solar panels at a solar facility built and operated by Chugach. Chugach Community Solar is a 500-kilowatt AC, four-acre project with 1,560 bifacial panels located on property owned by Chugach.

The program is designed for members who are unable or unwilling to install rooftop solar—whether due to renting, shading, structural limitations, or financial constraints. Participants subscribe to between one and 20 panels at a monthly cost of $9.21 per panel. Each panel is expected to generate approximately 399 kilowatt-hours in the first year, with energy credits applied directly to the member’s bill. Demand for the program exceeded expectations, initial enrollment was conducted via lottery, and the project reached full subscription within 45 days. As of Jan. 2, Chugach has 270 members enrolled in the program and 59 on a wait list.

If at first you don’t succeed

The project, however, was not Chugach’s first attempt at a community solar project. In 2017, responding to member interest and supporting Chugach’s sustainability business philosophy, the Chugach Board of Directors authorized us to proceed with a 500-kW solar facility, projected to generate 600 megawatt-hours per year. While that project was also subscription based, we proposed moving ahead with construction after 80% of the available shares were pre-subscribed. Ultimately, in 2019, the project was not accepted by the Regulatory Commission of Alaska, with the agency raising concerns that the program was overly complex. Although the initial project was not approved; we remained committed as the RCA emphasized the state’s strong interest in renewable energy and expressed support for innovative programs.

We continued to evaluate and model various community solar project structures, refining the approach in response to regulatory feedback. During this period, Chugach also received encouragement from external stakeholders, including the Alaska Public Interest Research Group, which submitted a letter of support to the RCA in February 2024.

“Most Alaskans support rooftop solar energy, but many cannot receive benefits from this kind of solar because they rent, have a shaded roof, low credit score, or do not have sufficient capital. Community solar is an important opportunity for Alaskans to earn comparable financial benefits as their neighbors with rooftop solar,” the Alaska Public Interest Research Group letter reads.

“Chugach’s Community Solar allows a larger group of citizens to invest through a monthly subscription in local and renewable power generation and diversify the grid without a prohibitive upfront investment. While there are currently no community solar arrays on Alaska’s Railbelt, Chugach’s project will change that reality,” the letter continued.

That same month, the RCA approved our request to move forward with a new community solar project, marking a major milestone in the cooperative’s long-term efforts.

A statewide signal of support

As Chugach refined its approach in advancing a new community solar proposal, broader conversations about community energy also gained momentum at the state level.

In May 2023, Alaska Senate Bill 152, an act relating to community energy facilities, was introduced to establish a legal framework for community energy projects in Alaska. Since Chugach was well underway with its community solar journey, we submitted a letter of support in recognition of the bill’s role in clarifying regulatory direction on the subject. Then, at the end of 2023, Chugach filed its updated proposed community solar program tariff with the RCA. Approval followed in February 2024, positioning Chugach as the first utility in Alaska to offer a community solar program.

A little over a year after the bill’s introduction, in August 2024, Chugach proudly hosted Alaska Gov. Mike Dunleavy at the future community solar site to sign the legislation into law. The signing underscored Alaska’s readiness to support community energy projects and reflected growing alignment between policy and utility-led innovation.

Building the first of its kind

With the project approved, Chugach moved quickly from concept to reality. Design work began, a solar contractor was selected, and plans took shape for a 500-kW AC (640-kW DC) community solar installation built to serve members for decades to come. The array—designed for a 25-year lifespan—would feature 1,560 bifacial panels, each rated at 410 DC watts, producing an estimated 622 megawatt-hours of clean energy annually.

That vision became tangible when Alaska Solar was selected to build Alaska’s first community solar project. The partnership was a natural fit: Chugach had recently worked with the Alaska-based contractor on two additional solar facilities supporting house power at its largest and most efficient natural gas-generation plants. Construction began in spring 2025, employing more than a dozen local workers.

The project site presented several challenges, including wetland conditions, freeze-thaw considerations, and direct interconnection at Chugach’s Retherford Substation. Crews completed trenching, conduit installation, racking, panel installation, and inverter setup while adapting to late-season weather and site constraints. Like many Alaska projects, construction also required occasional pauses, including one instance when a curious moose calf entered the fenced site—an unexpected reminder that even the best-laid plans must occasionally yield to nature. Each challenge became a lesson, helping position Chugach for even greater success on future projects.

By summer’s end, construction was complete. The system was energized, and Chugach Community Solar subscribers began seeing solar credits appear on their bills in August 2025—marking the moment Alaska’s first community solar project officially came online.

From project to participation

Building the solar array was only part of the work. Ensuring the project’s success also meant preparing members to participate. While there was clear interest in community solar, Chugach recognized an important distinction: expressing interest is quite different from committing to a monthly subscription. Bridging that gap required education, transparency, and consistent communication.

Historically, many Chugach member programs—such as our electric vehicle charging and heat pump initiatives—provide credits or rebates. Community solar was different. This program asked members to voluntarily pay a monthly premium in exchange for access to locally generated renewable energy. It was the first service program of its kind at Chugach that required sustained, proactive outreach and true marketing to help members understand the value of participation.

To build awareness, increase understanding, and earn member confidence, Chugach took a multichannel approach. Chugach staff developed a dedicated community solar webpage and FAQs to explain how the program works. An interest form allowed members to submit feedback, sign up for updates, and receive ongoing information through an email newsletter. Outreach efforts extended well beyond digital communications, including presentations at legislative and community events, board and committee meetings, and internal staff briefings—ensuring employees could confidently discuss the program with members and the broader community.

Chugach also hosted a well-attended webinar to address questions directly and developed a member-friendly subscription calculator to help participants understand costs, benefits, and subscription options. Throughout the project life cycle, earned media coverage helped broaden awareness and reinforce understanding.

This combination of education, engagement, and transparency made the difference. Having the project over-subscribed so quickly was an early and clear signal that Chugach members were ready to participate in Alaska’s first community solar project.

Ribbon cutting in the rain

Due to strong interest and enthusiasm surrounding the community solar project, Chugach hosted a ribbon-cutting event to celebrate the milestone with members, program subscribers, and local officials. Despite heavy rain on the August event day, attendance remained strong—a reflection of the community’s commitment and enthusiasm. Many subscribers expressed pride in participating in Alaska’s first community solar program and in supporting locally generated renewable energy.

“I am a strong believer in the need for us to develop more clean, renewable energy that does not destroy our environment,” said Chugach member Ann Yates. “I live in a townhouse, so I can’t put on solar. And so, I kind of felt like I was stuck with the same old fossil fuel. This allows me to partake in clean energy through this farm. Yeah!”

Chugach member Steve Carroll said he felt like he had won the lottery.

“I’m super excited because I’m a low utility user at only 300 kilowatts [hours] a month,” he said. “With five panels, that pretty much can cover my utility usage, and low-cost electrons and low capital investment for the next 25 years. This is the wave of the future for Alaska and America.”

Chugach is committed to adding renewable projects to our generation mix that allow the utility to keep providing reliable power at affordable rates.

Early insight and member feedback from our solar pioneers

Now, nearly six months into the program, Chugach has begun evaluating system performance and participant experience. Together, these early insights are helping inform how community energy programs can continue to evolve and improve.

From an energy production standpoint, output has been slightly lower than initial projections. The variance is primarily attributed to higher-than-average cloud cover and reduced sunlight during the first four months of operation. In fact, three of those four months ranked as the lowest or second-lowest solar irradiance periods observed in the past decade—highlighting the importance of long-term performance tracking rather than short-term snapshots.

Equally important has been understanding how members experience the program. Each new community solar subscriber receives a welcome email and is enrolled in the Solar Pioneer Newsletter—an exclusive subscriber newsletter designed to keep participants informed and engaged. The newsletter provides regular updates on energy production, guidance on reading their bill credits, and additional information tailored to members participating in the program.

Subscribers are also invited to complete a voluntary survey. The responses have helped Chugach better understand who is participating and why. Early results show that support for clean and renewable energy is the primary motivation for enrollment. While the program is open to all eligible members, 99% of participants are residential members, representing a range of housing types—from single-family homes to mobile homes. In addition, more than half of subscribers, 55%, are long-term residents, having lived at their current location for more than 10 years.

These early insights reinforce what Chugach heard during outreach: Members are eager for accessible, locally based renewable energy options, and community solar is meeting that interest in meaningful ways.

Diversified generation

While the community solar project stems in large part from member interest, Chugach is also focused on reducing our need for natural gas. Renewable generation is a priority for many members and our board of directors. Currently, we have a corporate goal of reducing our carbon intensity by at least 35% by 2030 and at least 50% by 2040, with no negative material impact to rates or reliability. We are looking at future renewable projects to include more hydro, wind, and solar.

With a total project cost of $2.8 million, the electricity generated from the community solar project is the energy equivalent of about 0.02% of our annual retail energy sales. And while the community solar program is only a small portion of that energy diversity, it’s an important signal that we are serious about reducing the need for natural gas and will continue to look for projects that work for our members and the cooperative. In October 2025, the Chugach Board of Directors approved a 10-MW solar project. The project is expected to start commercial operation by mid-2027.

As winter will soon be spring, we look forward to having the first full season of community solar and giving our members the opportunity to realize the full potential of their investment.

 

View the Chugach Community Solar website here. Or click the image below to view the Chugach Community Solar Project video on YouTube.