Arkansas solar panels: The complete guide in 2024

Data updated Jun 11, 2024

Written by: Emily Walker

Interested in going solar? You'll need to install a 13.61 kW solar panel system to cover the average electric bill in Arkansas, which will cost you about $25,171 after the federal tax credit.

Cost for an average system in Arkansas

Out of pocket cost, cash
Federal tax credit (30%)
- $10,787
Price post tax credit

20-year savings $22,925
Payback period 12 Years
Electricity offset 92%
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As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).

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Going solar in Arkansas

Arkansas sees some pretty crazy storms––but it also gets a decent amount of sunshine. 

Adding solar panels to your home can help you gain independence from your utility company and support clean energy development in Arkansas. If you pair your solar panel system with the right battery, you can even gain protection from grid outages.

Here's what you need to know about going solar in the Natural State.


How much do solar panels cost in Arkansas?

Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Arkansas homeowner needs a 13.61 kW solar panel system to cover their electricity needs, which comes out to $35,958 before incentives. Prices range from $30,564 to $41,352, but after the federal tax credit, that drops by 30%. 

While this may sound expensive, solar panels can pay for themselves over time in Arkansas. That's why over 3,300 Arkansas homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 11.55 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.

There are a few ways to finance your solar panel system so you don't have to provide all that money upfront. 

  • Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings. 

  • Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options––private solar loans typically come with higher interest rates or upfront fees.

  • Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.

Solar panels on a house


What are the best solar rebates and incentives in Arkansas?

Incentives help bring solar's price tag down considerably in Arkansas. Here are the major ones to know about:

Average savings in Arkansas

Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC)


Lowers your solar panel system's cost by 30%

Is net metering available in Arkansas?

In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and makes it so you will owe very little, or even nothing, on your electric bills with solar panels.

Unfortunately, Arkansas is transitioning from net metering to net billing this year. Under net billing, your utility company will buy solar from you at the avoided cost rate (what they usually pay for electricity) instead of the retail rate (what you usually pay for electricity).

But if you want to lock in net metering for 20 years, you still have some time left: Just make sure to install solar panels by September 30, 2024. If you wait, you'll miss out on thousands in savings.

A house with rooftop solar panels connected to the grid


Equipment quality

Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2024, the most popular solar panels can produce about 400 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.  

You should also make sure to select a solar inverter setup that makes sense for your roof’s layout. 

And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter. 

Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output further into the future. 

See our list of the best solar panels


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