Alaska's Off-Grid Communities Face Rising Diesel Costs as Governor Promotes Solar Alternative

Alaska Governor Mike Dunleavy urged the state's 220-plus off-grid communities to consider solar power as diesel fuel prices climb, speaking Wednesday at the Alaska Sustainable Energy Conference in Anchorage.

These remote communities are ordering fuel for fall and winter at elevated prices. Many lack road access and rely entirely on diesel generators for electricity and heat.

Dunleavy said solar panels paired with wind power, diesel backup, and batteries can cut diesel consumption significantly. He pointed to installations in Fairbanks and Kotzebue, located above the Arctic Circle, as proof the technology works statewide.

"Many of our communities that have a combination of diesel power, wind power, now solar power, and then battery, you are able to cut down on the cost of diesel," Dunleavy said.

The governor owns a 50-panel solar array at his residence. He said the system generates substantial power even on December 21, the shortest day of the year. February and March produce the most electricity because snow on the ground reflects additional sunlight onto the panels.

Solar panels perform better in cold weather than heat, Dunleavy noted. A sunny February day in Fairbanks produces more output than a 90-degree desert day with identical equipment.

He described himself as "an oil and gas guy" who grew up heating his Scranton, Pennsylvania home with anthracite coal. But he framed solar as part of an "all-in energy approach" rather than a replacement for traditional sources.

Solar installations require no moving parts and minimal maintenance beyond occasional cleaning, making them simpler than wind turbines. Dunleavy predicted advancing technology will improve panel efficiency and reduce costs, eliminating the need for subsidies.

In August 2024, Dunleavy signed Senate Bill 152, creating a virtual net metering program that allows multiple ratepayers to pool resources and receive benefits from a single renewable energy project.