Southeast Alaska isn’t particularly known for regular blue skies and sunny days, but that isn’t stopping progress on a new solar farm in Wrangell.

The Southeast Alaska Power Agency (SEAPA) began preliminary construction earlier this summer on its solar farm out near 6-Mile. 

To satisfy federal investment tax credit requirements outlined in last year’s Trump administration tax and spending plan, known as the Big Beautiful Bill, the company was required to start building before July 4, 2026.

“By breaking ground and putting in the substation pad and the power line road and part of the remainder of the road, we were able to meet those requirements,” said Robert Siedman, chief executive officer for Ketchikan-based SEAPA.

The tax credits would cover up to half the cost of the estimated $6 million project.

Since that first major milestone has been met, Siedman said they now have more breathing room in terms of time moving forward.

SEAPA operates the Tyee Lake hydropower project for Wrangell and Petersburg, and the Swan Lake hydropower plant for Ketchikan.

The next major hurdle for the 44-acre site above the highway is a wetland delineation process, which will determine whether a creek running through the property falls under the U.S. Army Corps of Engineers’ jurisdiction. The outcome will decide the access road design.

“We will either have to permit access across that creek or build in a culvert or a bridge or something of that nature,” Siedman said.

The delineation process and necessary permitting are expected to take about a year, according to SEAPA project manager Mark Hilson. If all goes well, they will be able to continue work during the 2027 construction season, well ahead of the 2030 tax credit deadline. 

Another potential barrier could be sourcing parts. The federal legislation requires at least 55% of materials to be sourced domestically, Siedman said, so he doesn’t expect tariffs to impact the project. However, some of those parts are experiencing higher demand with the recent artificial intelligence tech boom. As a result, some electrical components needed to build the solar units are on back order and have longer lead times, which could impact the overall timeline.

The project would start with a capacity of 1.5 megawatts of solar generating capacity and could be expanded to 5 megawatts. By comparison, each of the two hydropower units at Tyee Lake is capable of spinning 10 megawatts of power.

Once completed, the farm will help further diversify Wrangell’s energy portfolio, potentially cushioning residents against utility spikes that occur when the hydroelectric plant is shut down for maintenance, as occurred earlier this summer.

“Our goal is to try and get it done in 2028, by the end of 28, but it may move into 29,” Siedman said.