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Arkansas Solar Panels: Pricing and IncentivesHow much do solar panels cost in Arkansas?
Written by Michelle Honeyager
Edited by Lisa Iscrupe
Last updated 08/24/2022
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Solar power in Arkansas
Solar energy in Arkansas can be a wonderful option to collect and store electricity since the state receives ample sunlight most of the year. Arkansas overall is starting to embrace solar power. According to the Solar Energy Industries Association (SEIA), the state has almost 600 megawatts (MW) of solar installed and is projected to add 1,000 MW over the next five years.
For Arkansas residents, home solar panels can be a way to reduce energy bills and reduce reliance on the energy grid. Discover more benefits of solar power in Arkansas, how much solar panels cost, and solar incentives and rebates for residents of the state.
Arkansas solar panel cost
The cost of solar panels in Arkansas can total $11,160 to $46,500 for an entire solar array. The average time it takes for a homeowner to start seeing a return on investment for solar panels in Arkansas is six to nine years. Solar panels last 25–30 years, so the ROI is a fraction of the time you will have the panels in place. The price can vary due to:
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Arkansas solar incentives and rebates
Federal and local solar incentives and rebates are available to Arkansas residents who purchase or finance their solar panels. On the federal level, the Residential Clean Energy Credit — previously known as the Investment Tax Credit (ITC) — allows solar buyers a 30% tax credit for installing solar systems from 2022 through 2032. Arkansas also offers statewide solar incentives like net metering. Contact your local Arkansas electric company to learn more about their specific net metering guidelines.
|Entergy Arkansas Net Metering Program||Participants in this net metering program receive a monthly credit on their electric bill for excess energy produced through a residential solar system of less than 25 kilowatts (kW).|
|First Electric Cooperative Net Metering Program||Customers of First Electric can earn bill credits. Prior approval is needed to participate in this net metering service.|
|Southwest Arkansas Electric Cooperative (SWREA) Net Metering Program||SWREA customers can learn more about the company’s net metering policies to earn bill credits.|
|Southwestern Electric Power Company (SWEPCO) Interconnection Program||SWEPCO electric customers can participate in the interconnection program, which provides net metering bill credits.|
Why choose Arkansas solar power right now?
Opting for solar power in Arkansas can ensure a lower electricity rate for your home for years to come. Historically, energy rates go up over time. For example, according to Ballotpedia, Arkansas’ average residential electricity rate in 2003 was 7.2 cents/kWh. By 2013, the average rate was 9.57 cents/kWh. The average residential electricity rate in Arkansas currently stands at 10.9 cents/kWh. This rate change equals a 40% difference over the last 20 years. Generating solar electricity for your home and incurring the net metering benefits Arkansas offers can significantly reduce your electricity bill. You will be generating your own electricity, plus earning bill credits when you sell energy back to the power grid.
Another benefit to choosing Arkansas solar power is that installing solar can improve your home’s value. Many people will pay more for a home already set up with solar because it ensures they will save money on their electricity bills over time. A solar panel system can increase your property value by $15,000 on average.
Extreme weather and outdated infrastructure is becoming a threat to the U.S. electrical grid, causing residents to experience periods of interrupted power every year. With a solar panel system that includes a solar battery, vital appliances can still function during a temporary power outage. Popular solar batteries include the Tesla Powerwall and GeneracPWRcell.
And, of course, the environmental benefits are also huge for solar power. Solar is a 100% renewable resource and can reduce your carbon footprint.
Should I buy or lease solar panels in Arkansas?
If your top concern is saving money, buying or financing solar panels in Arkansas is your best option. Buying solar panels lets you claim the solar tax credit and net metering benefits. An upfront purchase also allows you to avoid interest rates. However, low-interest loans are often available for energy-efficient home improvements such as installing solar.
Other options, such as leasing or entering a power purchase agreement (PPA) isn’t necessarily a bad option. Leasing solar panels helps provide solar to homeowners that might not be able to install solar otherwise. Leasing and power purchase agreements still allow residents to benefit from lower electric costs. However, these two methods of getting solar can lower overall savings since it bars qualification from the solar tax credit and net metering bill credits.
You might also have a shared or community solar program in Arkansas near you. Through community solar, off-site solar panels provide power to multiple homes. Individuals purchase or subscribe to part of that solar array so that the community pays less on an individual basis.
Arkansas solar power companies
There are nearly 30 solar energy companies and installers in Arkansas. Choosing the right one for you doesn’t have to be complicated. SaveOnEnergyⓇ can connect you with a reliable solar panel installer in Arkansas. Our trusted solar partners use top-rated solar panel brands and high-quality monocrystalline solar panels. Simply fill out the form above, and we will contact you to set you up with a solar installer in your area to assist you with customized plans and financing options.
The history of solar power in Arkansas
Since the discovery of solar power, Arkansas has expanded its investments in solar and other green energy initiatives, despite the challenges facing the solar energy industry. Arkansas currently ranks 28th in solar energy generation.
Arkansas also has several solar farms operating in the state. One example of an active large-scale system is Stuttgart Solar, with an 81 MW capacity. Happy Solar 1 is another major solar system that is in the planning stages and expected to have a 95 MW capacity.
Important solar installation factors to consider
There are factors of your home and area that make solar panels more or less viable.
- Age and angle of roof. Older roofs might not be strong enough to support a whole solar array. Damaged roofs may need to undergo repairs before installing solar panels. The roof must also angle so that it can access enough sunlight to store and use that energy.
- Access to sunlight. Arkansas is fairly sunny as a state. Solar panels work by capturing sunlight, so too much shade may limit the efficiency of your solar panels.
- Neighborhood rules. You may also have to check with your HOA or neighborhood rules to see if you need approval to install solar.
Solar Power FAQs
Yes. Investing in solar now can save money on your electricity bill in the long run. The Residential Clean Energy Credit and net metering options also add to the benefits of solar in Arkansas.
Savings can depend on the size of the solar array, how much energy is generated, and qualifying solar incentives. Households with high electricity use or homes that earn net metering bill credits could end up saving more
SaveOnEnergy can help you find trusted solar installers near you. Fill out the form on this page to get the process started toward a solar-powered home. Our energy experts will reach back out to you to create a customized solar experience.
Solar power is a renewable resource and doesn’t produce carbon dioxide. Installing solar panels helps the environment by lowering your carbon footprint. The Nature Conservancy defines carbon footprint as “the total amount of greenhouse gases (including carbon dioxide and methane) that are generated by our actions.”