Arkansas solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: No

Net metering (by utility)

Calculate for your homes location

There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.

Summary of Arkansas solar incentives 2020

Arkansas continues to be a strong place to consider investing in home solar, because costs have fallen and there's a high amount of sunshine blanketing the state. It also helps that there is a strong net metering policy in effect. That means your utility must credit you for the solar power you aren’t able to use onsite, and send back to them. What’s more, solar leasing is now available in Arkansas, opening up more options for you to go solar!

Read on to explore the entire savings, policy, and incentive picture for home solar panel installation in Arkansas.

On this page, you can:

  1. Learn what solar incentives are available to Arkansas homeowners

  2. See what Arkansas solar incentives you qualify for based on your utility company and city

  3. Find out how much these incentives and/or Arkansas solar tax credits will reduce your cost to go solar and add batteries

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Arkansas

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.

The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.

Net energy metering in Arkansas

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.

Net Metering is offered in Arkansas through all utility companies, and you get credited at full retail electricity rates when you are producing more solar electricity than you are using.

Net metered systems can be up to 25 kW large for home solar in Arkansas. That’s about 80 panels, way more than enough to cover your electricity needs, even if you’re housing a few families and several wandering souls.

In 2019, the Arkansas legislature also allowed solar leasing to be available, opening up more options for you to go solar. Unfortunately, they also decided that the state public utilities commission can determine whether offering net metering represents an "undue burden" on non-solar customers, which is a dog whistle that utility-backed legislators use to indicate support for imposing new fees and reducing compensation paid to solar owners. If you're thinking of going solar in Arkansas, we recommend to do it soon, before they change the deal on you.

Arkansas solar rebates

While Arkansas does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.

Cost of solar panels in your part of Arkansas after all applicable solar incentives

Solar prices near you

Cost range of local prices

$19,658-$24,027

Payback period

8.9-10.9 years

Net profit (savings less system cost)

$45,729-$55,891

Average size system installed in AR in 2020

11.9kW

Solar panel cost calculator

Best 10 solar companies in Arkansas

6 solar companies in Arkansas provide pricing on SolarReviews. Here are the best rated companies near you.

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