Arkansas Solar Guide 2026
Everything Arkansas homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Quick answer
Arkansas solar economics depend mainly on 5 average peak sun hours, an estimated $2.75/W installed cost, 11.0¢/kWh electricity, and the state's current net-metering rules.
Reviewed 2026-07-26
- Best for
- Arkansas homeowners comparing solar costs, incentives, and payback assumptions.
- Inputs needed
- annual kWh usage, utility rate, installed $/W, net-metering policy
- Formula used
- Typical production = system kW × peak sun hours × 365.
- Source checked
- state incentive data, utility tariff checks, Wattcrunch price benchmarks
Key fact about Arkansas solar
Arkansas has solid sun hours (5.0/day) and full retail net metering, but low electricity rates extend payback. Arkansas is an underserved solar market — fewer installers means shopping quotes is especially important.
Peak sun hours
5
hrs/day avg
Avg electricity rate
11.0¢
per kWh
Median install cost
$2.75/W
before incentives
Typical payback
13 yrs
8 kW system, avg usage
Typical 8 kW system in Arkansas
Annual production
14,600 kWh
Year-1 savings
$1,606
System cost (est.)
$22,000
No federal tax credit — Section 25D expired December 31, 2025.
Arkansas Net Metering Policy
Full retail net metering (APSC Rule)
Arkansas requires full retail net metering under APSC rules. Entergy Arkansas and AEP Southwestern Electric must credit exports at retail. Monthly net excess carries forward for 12 months.
Arkansas Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Sales tax exemption on solar equipment
- ✓Property tax exemption
- ✓AECC and co-op rebate programs (varies)
Top Utilities in Arkansas
Interconnection timeline: 4–8 weeks
State-specific decision guide
What to verify before signing a Arkansas solar quote
In Arkansas, the financial result depends on more than sunshine or the headline installation price. Confirm the export rule, program eligibility date, and interconnection timeline for your exact utility before treating a payback estimate as a promise.
Export value
This page models full retail net metering (apsc rule). Ask which tariff and export credit apply to your account, not only which program name appears in the proposal.
Incentive eligibility
Check equipment, income, installer, application, and placed-in-service rules before subtracting an incentive from the quote. Programs can close or change terms.
Interconnection
Budget for the published 4–8 weeks and confirm who pays for a required meter, service upgrade, or engineering review.
Source trail: production assumptions use NREL PVWatts; incentive discovery should be checked against DSIRE; electricity-market context is available from the EIA. Confirm final tax treatment with the IRS and your utility.
Calculate your Arkansas solar economics
Our calculators are pre-filled with Arkansas data. Run any tool below.