What drives electric bills in Alaska
Residential electricity in Alaska averaged 27.1¢ per kWh in January–July 2026, up 5.0% from 25.8¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 28.8¢. The typical home here used 578 kWh a month in 2024, 33% less than the U.S. average, so a high bill usually points to the price per kWh or to one big appliance.
- Cook Inlet natural gas. Anchorage-area utilities rely on natural gas from Cook Inlet, and supplies are tightening. Higher gas prices pass through on fuel and purchased power charges.
- Diesel in rural Alaska. Villages off the road system often pay several times more per kWh because diesel has to be shipped or flown in.
- Long winters. Many hours of darkness and extreme cold increase lighting, heating and block heater use.
Who supplies your power
Chugach Electric and Matanuska Electric serve the Anchorage area and the Mat-Su Valley, Golden Valley Electric serves Fairbanks, and Homer Electric serves the Kenai Peninsula. Many rural villages are served by small, often diesel-powered utilities.
Ways to pay less in Alaska
- Put engine block heaters on timers. Running one all night can add a lot to a winter bill; two to three hours before you leave is usually enough.
- Swap remaining incandescent bulbs for LEDs. With so many dark hours in winter, lighting is a bigger share of Alaska bills than elsewhere.
For example, a 1,500 W space heater running 8 hours a day costs about $99 a month at Alaska prices. Check what your appliances cost to run in Alaska.
Help paying your bill in Alaska
- Power Cost Equalization (PCE): a state program that lowers the price of the first 750 kWh a month for homes in rural communities with high power costs. It’s applied automatically by eligible utilities.
- Heating Assistance Program: Alaska’s LIHEAP program helps with heating costs, and the Alaska Housing Finance Corporation offers weatherization.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Alaska?
A typical 7 kW rooftop system in Alaska produces roughly 5,950 kWh a year, about 86% of what an average home here uses. At the state’s average price of 27.1¢, that power is worth about $1,612 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Alaska compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Alaska | 27.1¢ | 578 | $157 |
| Washington | 14.4¢ | 955 | $138 |
| Hawaii | 46.3¢ | 495 | $229 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.