Solar power in Arkansas

Arkansas ranks 33rd in the U.S. for solar, according to the Solar Energy Industries Association (SEIA). Solar energy makes up 1.54% of the state’s electricity generation. Arkansas receives ample sunshine throughout the year, making the state an ideal location for solar power. Solar adoption is expected to continue with an increase in solar capacity of more than 3,400 megawatts (MW) over the next five years.

Installing solar panels on your home can be an effective way to reduce your electricity bills and boost your energy independence. However, you should be aware that purchasing a solar system in Arkansas could cost an average of $34,900. You can lower your total installation cost with tax credits and incentives, and you may have several payment options. Discover the benefits, costs, companies, and incentives for solar in Arkansas on this page.

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Arkansas solar panel cost

The cost of solar panels is measured by watt. The total cost of a solar system in Arkansas depends on the number of panels in your system, your home’s location, and upgrades or roof repairs. Additional factors such as battery storage or electrical work can also increase the price. Data from Find Energy estimates the price per watt in Arkansas is $3.49, which is slightly lower than the U.S. average price of $3.67, according to the Lawrence Berkeley National Laboratory. The average Arkansas home requires a 10-kilowatt (kW) system, bringing the total system cost to $34,900.

Here’s how typical solar costs in Arkansas compare to the average U.S. prices:

How does Arkansas solar save you money?

After factoring in Arkansas’s average electricity bill of $134.07, the payback period, or time for your investment to pay for itself, is about 15 years. Over the lifetime of your solar panels, typically 25-30 years, you could save thousands on your energy bills and earn net metering credits. Arkansas electricity rates have increased by 5% since April 2022 and will likely continue to increase. Reducing your bills by switching to solar can help you avoid these price hikes.

The following table details solar costs by system size, which varies based on your energy usage and other factors. Many installers provide a free quote for Arkansas solar systems.

The best Arkansas solar incentives and rebates

Federal and local solar incentives and rebates are available to Arkansas residents who purchase or finance solar panels. These incentives can help you offset the cost of investing in solar power. On the federal level, the Residential Clean Energy Credit offers a 30% solar panel tax credit for residents who add a system to their primary or secondary homes.

On March 16, 2023, Arkansas Governor Sarah Sanders signed Act 278, reducing the credited rate for net metering. Traditionally, net metering is an exchange between the customer and the utility where excess generated energy is sold back to the grid, and solar customers receive energy bill credits. Before the signing of Act 278, the net metering rate was equal to the retail electricity rate. Now, the credited rate is less than the retail rate, which may disincentivize Arkansas residents from installing solar panels. Other states like Hawaii and California have also reduced net metering rates in recent years.

If you signed a net metering contract before Dec. 31, 2022, or apply for interconnection before Sept. 30, 2024, you are locked into more favorable net metering rates. If you are a new solar customer in Arkansas, contact your utility company for specific rates. SaveOnEnergy can connect you to installers who can help you sign up before the deadline. Fill out the form to start the process. In addition to net metering, Arkansas offers federal and state solar incentives.

Solar incentives in Fayetteville

The city of Fayetteville set goals in its Energy Action Plan to transition all city-owned facilities to 100% clean energy by 2030. To reach the city’s goal, Fayetteville approved projects for 87 acres of ground-mounted solar panels to provide 18.3 million kilowatt-hours (kWh) of solar energy per year. The project increases Fayetteville’s clean energy usage by 56%, which improves air quality and reduces carbon emissions, resulting in a healthier city.

Solar incentives in Little Rock

The  Little Rock Sustainability Office plans to transition city operations to 100% clean energy by 2030, significantly reducing greenhouse gas emissions. Clean energy sources include solar, wind, nuclear, and hydropower to fuel city-owned facilities and vehicles. The city will offer grants and other programs to financially support residents and businesses transition to clean energy. The transition may also lead to an increase in clean energy jobs.

Why choose Arkansas solar power?

Arkansas residents who choose to go solar can look forward to several major benefits as a result of their investment, including electricity cost savings, energy independence, and an improved carbon footprint.

Lower energy costs

Solar power in Arkansas can lead to lower energy bills for your home. Arkansas electricity rates have risen by over 5% in the past year. Depending on your location, incentives, and energy usage, you could save thousands of dollars over the lifetime of your solar panel system.

Establish energy independence

Installing a solar panel system can reduce your reliance on the power grid, making you less vulnerable to price spikes. Installing a solar battery to store excess generated energy increases your independence and can supply energy to your essentials during a power outage. It also allows you to use solar power when the sun isn’t shining. Installers offer different batteries depending on your needs. Popular solar batteries include the Tesla Powerwall and GeneracPWRcell.

Go green

Solar power provides many environmental benefits because it does not directly emit greenhouse gases. By contrast, fossil fuels emit CO2, contributing to climate change. Solar energy is a 100% renewable resource and reduces your home’s carbon footprint.

Should I buy or lease solar panels?

Several payment options are available to make choosing solar power accessible to all. Each option has its own benefits and drawbacks to consider based on your budget. A cash purchase is a significant investment but can save you the most money in the long run. Solar loans, leases, and power purchase agreements (PPAs) have lower upfront costs.

You can take a closer look at payment options and their pros and cons in the following table.

Arkansas solar panel companies

There are 36 solar energy companies in Arkansas. As a result, you’ll have a wide range of options when searching for a solar panel installer near you. SaveOnEnergy partners with trusted solar panel installers and can connect you with a reliable company. Fill out the form on this page or call the number on your screen to start your solar installation process.

Solar Installer	Year founded	Financing options	Warranty terms
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	2012	Solar lease, loan, or PPA	Up to a 25-year equipment and installation warranty
	1985	Cash purchase, solar loan, or lease	25-year full system warranty

What to look for in a solar contractor

One of the main things you’ll want to consider when choosing a contractor is the overall cost, measured per watt. You should obtain quotes from multiple licensed solar installers to ensure you have the best deal. In addition, make sure the contractor you choose offers the services you need, such as battery installation, roof repairs, and electrical wiring. Consider whether they offer a strong warranty and use high-quality products. You should also look for an installer that offers various financing options, depending on how you choose to access solar. Finally, it’s well worth reading customer reviews about the company to get an idea of what its reputation is like.

Beware of free solar panels in Arkansas scam

As the solar industry continues to grow rapidly, some unscrupulous actors are seeking to take advantage of expanding consumer interest in solar panels. You may see advertisements promising free or very cheap solar panels in Arkansas. You should avoid these scams since there is no such thing as free solar panels. The average cost of solar panel installation in Arkansas is around $3.49 per watt. While it’s possible to find below-average prices, you should be suspicious of any quote claiming to offer solar installation for a small fraction of this price.

Important solar installation factors to consider

Review the following factors to help determine if installing solar is right for your home.

• Age and angle of roof. Old or damaged roofs require replacement or repair to support a solar array. The Department of Energy suggests that south-facing roofs with a slope between 15 and 40 degrees are the best for solar generation.
• Access to sunlight.Solar panels work by capturing sunlight. Consider removing trees or other obstructions shading your roof that can limit panel efficiency.
• Neighborhood rules. Arkansas does not have any laws prohibiting homeowners associations (HOA) from banning solar panels. Check the guidelines of your neighborhood organization before installation. You can work with your installer to navigate potential roadblocks.