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Arkansas Solar Information

Arkansas isn’t a bad state for solar. There’s always enough sunshine to cover your basic energy needs or at least to reduce your monthly electricity bill. The 26% Federal Solar Tax Credit as well as some local incentives will make your solar installation even more profitable.
  • #25
    Arkansas ranks #25 in the USA for savings from installing solar panels
  • 6017.03 kWh
    Annual AC energy output of a 4 kW solar system installed in Arkansas
  • 5.21 kWh
    Solar Radiation (kWh / m2 / day)
  • 10 ¢ /kWh
    The cost of electricity today in Entergy Arkansas Inc
  • 20 ¢ /kWh
    If you don't go solar. The forecast average utility price over the next 25 years

Arkansas Solar Facts

  • $1.35
    Average cost of a 4kw solar power system in 2019.
  • 5 years
    Average system payback period.
  • $41 541
    Average lifetime savings.
  • 4 ¢ /kWh
    Levelized cost of solar energy.
  • 5 kW
    Recommended system size.

Arkansas has a considerable solar power potential, although it truly has four seasons, ranging from fairly mild to incredibly extreme. This south-central state doesn’t offer any state-specific tax credits, but you can still take advantage of the 30% ITC. Fortunately, Arkansas boasts one of the best net metering policies in the US, which can eliminate your electricity bill at all.

Arkansas Solar Facts

  • Solar power generation has increased almost eightfold since 2016 and now accounts for about 0.6% of the state’s electricity generation.
  • Arkansas’s solar investment is over $317 millions as of today.
  • The installation prices have fallen 40% over the last 5 years.
  • With 30 solar companies, the state provides about 330 solar jobs.
  • Solar Power System Cost in Arkansas
  • $1.35 per watt
  • $5 674 total
  • 5 years

The Cost of Solar Panels in Arkansas

The average cost of solar panels per watt in Arkansas is $3.91/W to date. A typical 6kW solar system will run you $23,477 before the Federal Solar Tax Credit and much lower after claiming ITC.

Arkansas Solar Rebates and Tax Credits

The Federal Investment Tax Credit – This government program is also known as Investment Tax Credit (ITC). It allows you to deduct 30% of the total cost of the solar equipment and its installation on your federal taxes and has no limit on its value.

Arkansas Solar Incentives

Net Metering Program – Arkansas has a very advantageous Net Metering policy, where the entire price of any kWh you export to the grid becomes a credit on the next month’s bill. This ensures that you save the full price of every single kWh of energy produced by your system, rather than a tiny fraction of the price as in many other states.

The utility company below provides Net Metering in Arkansas:

Entergy Arkansas, LLC – Net Metering is available to residential customers whose Net Metering facilities have generator capacity up to 25kW (or generator capacity representing the customer's highest residential usage in the previous twelve months) and to non-residential customers with the generator capacity up to 300kW.

Pros and Cons of Buying Solar Panels in Arkansas

Cons of Buying Solar Panels

  • Lack of sun due to the subtropical climate

    Snowfalls in the north of the state in winter and frequent rainfalls in summer result in less sun in comparison to other southern states. However, there are still more than 60% of sunny days a year.
  • High purchasing and installation costs

    Since RPSs aren’t available for Arkansas residents, they can only take advantage of ITC. So, the solar panels as well as the solar equipment and accessories may be rather costly.
  • Large area for installation is needed

    One of the main features of solar panels is their size, which implies a large rooftop space or large area of land needed to install them. Anyway, you are the one to choose where to install your panels.

Pros of buying solar panels

  • Relatively short payback period

    The solar payback period measures how many years it takes for a new PV system to recover the initial cost of the investment. Purchasing a PV system in Arkansas in cash has a payback period of around 18 years, but after that you will get more than $1,000 per year in free energy. Over its lifetime, the PV system will save you a net amount of more than $9,000.
  • After the payback period is over, solar power is nearly free

    Unless the utility company charges you a connection fee, once your solar energy system is entirely paid off, the electricity it generates comes at no cost to you.
  • Great savings on a monthly electric bill

    When you install a solar energy system on your home, you start to generate your own electricity. It means that you become less dependent on your local utility company and their utility rates, which are highly influenced by inflation. Even though you are paying for your PV system, you will be saving a great deal on the monthly electric bill.
  • Net Metering system

    The state has Net Metering policy in place, allowing households and businesses with small-scale rooftop and customer-sited solar panels to receive credits from utilities for putting excess electricity on the grid.
  • Electricity grid independence

    Arkansas is known for extreme weather and frequent storms. A typical year brings thunderstorms, tornadoes, hail, snow and ice storms. Electrical communications are very fragile to the conditions like that (such weather patterns lead to electricity facilities failure, breaks in the wiring and eventual power outage) compared with solar panels, which have quite more permanent structure.
  • Helping the environment since solar energy is clean, sustainable, and renewable

    Besides saving you money every month, solar energy is a truly clean, renewable, and sustainable power source. Sunlight is abundant and is ready to be harvested without any harm to the environment. What's more, installing an average-size solar system will mean saving 208 trees every year. It is proven that using solar energy instead of fossil fuels will decrease our carbon footprint by reducing air and water pollution.
  • Support from the government

    The Federal Investment Tax Credit offers significant savings to Arkansas residents when buying a solar system. Purchasing a PV system in Arkansas through a loan gives you an immediate benefit thanks to the 30% investment tax credit, but the net savings over the system’s lifetime will tend to be zero unless energy prices start to rise dramatically.
  • Very low maintenance

    Solar panels do not have any moving parts, so essentially there is no wear and tear with their usage. Thanks to this, solar panels are completely silent when working. The only maintenance that they need is the occasional cleaning from the dust, ice or snow.
  • Excellent warranty protection

    Today, most of the solar panels come with two types of warranties: performance guarantee and extended product warranty. The 25-year-long performance guarantee ensures efficient energy production for at least 25 years. Extended warranties guarantee to repair defective equipment, breakage or any deficit in the performance that might arise.
  • Increase in the property value

    Recently, studies by multiple organizations showed that installing solar panels on the roof of your house definitely adds value to the property. On average, adding a solar energy system will raise your house value by 4.1%. Furthermore, not only do houses with PV installations sell at higher prices, but they also sell faster than the houses without solar systems.

Is it worth going solar in Arkansas?

Arkansas is one of the south-central states of the US with a large number of sunny days per year and the Net Metering policy which is very favorable for owners of residential solar PV systems. If the financial aspect is not a key question for you and you are willing to contribute to environmental protection, the solar power system is definitely a good option for you.

Tell us how much you are spending on electricity and we’ll calcalute how much you can save if you go solar
According to Entergy Arkansas Inc, we received the cost of kWH in your area and calculated energy consumption based on an average electricity bill for 3 months.
I am claiming the 26% Federal Tax Credit (ends 2020) i

When you install your solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.

Most people are eligible to claim this credit (you must owe federal taxes to be eligible).

System size

  • Mini
  • Small
  • Medium
  • Large
We recommended
4.2 kW medium system size
Provides up to 80% of electricity consumption
$1.35 per watt
Average system cost
  • image rec 3
    13 x 325 watt
    solar panels
  • +
  • image rec 3
    13 x 300 watt
    microinverter
  • +
  • image rec 3
    1 x 5 000 watt
    inverter
$74.11 / month
Estimated savings on your average quarterly bill
  • $5 673.88
    Estimated system cost
    Excludes 26% Federal Tax Credit.
    This price does not include the installation cost.
  • 5 years
    Average system payback period
  • $41 540.90
    Estimated utility savings

Example of 4 kW system calculation in Minnesota for electricity bill $100

  • 10 ¢ /kWh
    The cost of electricity today in Entergy Arkansas Inc
  • 20 ¢ /kWh
    If you don't get solar. The forecast average utility price over the next 25 years
  • 4 ¢ /kWh
    levelized cost of solar energy

Relevant product for your system

Entry-level solar panels x 13
$2,416.44
  • View
  • View
Entry-level microinverter x 13
$2,001.15
  • View
Entry-level inverter x 1
$1,523.11
  • View
  • View
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Canadian Solar 315W Solar Panel 120 cell CS3K-320MS Monocrystalline Black - A1 Solar Store 28% Off
Cell number 120 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.52
Rated Power Output 315 W
Voltage (VOC) 40.1V
Cell Type Monocrystalline
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Cell number 60 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.57
Rated Power Output 325 W
Voltage (VOC) 43.4V
Cell Type Monocrystalline
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Cell number 60 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $0.55
Rated Power Output 320 W
Voltage (VOC) 44 V
Cell Type Monocrystalline
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Panasonic HIT 330W Solar Panel 96 cell VBHN330SA17 Monocrystalline Black - A1 Solar Store 28% Off
Cell number 96 cell
DC/Charger Volt Compatible 12v, 24v, 48v
Price per Watt $1.01
Rated Power Output 330 W
Voltage (VOC) 69.7V
Cell Type Monocrystalline