Oct 31, 2025 | Energy, News
Photo Credit: leungchopan
Solar power in Alaska is set to level up. The board of directors of Chugach Electric Association voted unanimously on October 22 to approve a $26.4 million investment for the state’s largest solar array yet. The 10 MW project would be located next to the utility’s 312 MW gas-fired power station at Beluga, near Tyonek.
The board was under a deadline to act before federal Investment Tax Credits are phased out. If the credits apply, the estimated cost to ratepayers drops to $16.4 million. The project would generate power for approximately $89/MWh, comparable to the anticipated cost of gas-powered electricity. Last year, Homer Electric Association contracted with Hilcorp Alaska for gas costing upwards of $85/MWh, and Chugach Electric’s supply contract is up for renegotiation in 2028.
Currently, the largest utility-scale solar farm in Alaska is in Houston, an 8.5 MW array installed in 2023 by Renewable Independent Power Producers. The company was planning a 45 MW facility at Puppy Dog Lake on the Kenai Peninsula, covering about 300 acres in Nikiski, but uncertainty about financing halted that project indefinitely.

The solar farm would require clear-cutting about 80 acres north of the Beluga Lake power plant. According to the conservation group Cook Inletkeeper, solar panels could offset gas-powered electricity that would otherwise emit about twenty times the estimated 8,480 tons of carbon released by clearing the land.
Meanwhile, Chugach Electric is also working on an additional community solar project, following the success of its first installation south of Dimond Boulevard. That 500 kW array is already fully subscribed, so the utility is planning on an expansion to accommodate more interested co-op members.
Regulations for independent community solar projects are also in flux, with public comment closing this week on proposed changes. State regulators are considering whether to lift the 5 MW cap on independent community solar to enable more projects to be developed statewide.
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