Solar Panels in Arkansas2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in Arkansas.
$17,000–$29,000
Avg system cost
$11,900–$20,300
After 30% ITC
4.7 hrs/day
Peak sun hours
$0.112/kWh
Avg rate
Is Solar Worth It in Arkansas?
Based on a home with a $150/month electric bill in Arkansas
Est. system size
8.6 kW
Gross cost
$24,995
Federal tax credit
−$7,498
Net cost
$17,496
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 9.7 years — then 10 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
Arkansas Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
Arkansas State
State Incentive
Net metering available; no state credit
Additional Arkansas Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: No exemption — solar adds to assessed value
Sales Tax Exemption: Sales tax applies to solar equipment purchase
Solar Installation Cost in Arkansas by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $883,826/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,237,356/yr |
| 9 kW | $22,091,040 | $15,463,728 | $1,590,886/yr |
| 12 kW | $29,454,720 | $20,618,304 | $2,121,181/yr |
* Costs based on $2.90/W national average. Arkansas installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in Arkansas
How much do solar panels cost in Arkansas?
Solar installation in Arkansas typically costs $17,000–$29,000 before incentives. After the 30% federal tax credit, most homeowners pay $11,900–$20,300 net.
Is solar worth it in Arkansas?
Yes — Arkansas homeowners benefit from 4.7 average peak sun hours per day. The 30% federal ITC combined with net metering available; no state credit make the financial case strong for most homeowners.
What state incentives are available for solar in Arkansas?
Net metering available; no state credit. On top of state incentives, all Arkansas homeowners qualify for the federal 30% Investment Tax Credit (ITC).
How long is the payback period for solar in Arkansas?
Based on Arkansas's average electricity rate of $0.112/kWh and 4.7 peak sun hours, most homeowners see payback in 9.7–13 years. Systems then produce free electricity for 15–20+ more years.
Does Arkansas have net metering?
Yes — Arkansas has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.