Arkansas has affordable electricity rates, at just over 12 cents per kilowatt-hour in June 2024 -- but household solar panels might still make sense for your individual home energy situation.
Plenty of sunlight, strong net metering policies and affordable solar panel prices make the path to energy independence a little easier in the Natural State. Arkansas averages 4.69 hours of peak sun per day, which is great for solar energy generation, and residential solar costs have decreased by 52% in the past 10 years.
The Inflation Reduction Act passed by Congress in 2022 put forward a federal tax credit arming residents with more solar buying power. This credit, the residential clean energy credit, lets homeowners take advantage of a 30% rebate on all of the clean energy additions they make to their homes; that includes solar panel systems and solar batteries.
If you're looking to go solar and save money on your energy bills, here's what you need to know, starting with the best solar companies operating within Arkansas.
Arkansas solar panel companies
Freedom Forever
Best for cash customers
Read full review
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that's changing.
Tesla Solar
Most affordable
Read full review
Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.
If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.
Local solar panel companies in Arkansas
Located in Russellville, Arkansas, Perihelion Solar is an employee-owned solar company founded in 2018. In addition to solar panel installations, Perihelion provides education about solar energy and advocates for reforms. The company's certified professionals install name-brand products from SunPower and REC.
Since 2015, Seal Solar has performed more than 850 residential solar system installations for homes in Arkansas. Following an instant price estimate, Seal Solar has a five-step process to install a solar system. The company's certified professionals will help determine the exact size your home needs and provide financing options with contracts ranging from five to 25 years. In addition to manufacturer warranties, Seal Solar adds a 25-year quality of work warranty.
Shine Solar has installed solar panels on more than 1,800 homes in Arkansas and some surrounding states, like Oklahoma. The company provides the Shine Promise, which includes lifetime monitoring, a 12-year quality of work warranty, a 25-year minimum production guarantee and a 50% panel buy-back for upgrades.
How to determine which solar company in Arkansas is best for me
Arkansas has just 16 solar developers and installers, according to the Solar Energy Industries Association. But you only need to pick one. The most important thing is not to just go with the first company that shows up at your door promising energy independence. Solar panels are a big, expensive investment. Here are some tips:
- Get a lot of quotes.
- Ask your friends and neighbors with solar panels about their experiences.
- Make sure installers have visited your home and are basing their quote on your property and needs.
- Consider each company's customer reviews and reputation.
Cost of solar panels in Arkansas
Here's a look at the average cash price for a typical solar panel system in Arkansas before factoring in tax credits and incentives, according to data from FindEnergy.com.
Average cost of solar panels in Arkansas
| Typical system size (kW) | Price per watt | Total installed cost | Cost after 30% federal tax credit | |
| Arkansas | 5 | $3.35 | $16,750 | $11,725 |
| National average | 5 | $3.60 | $18,000 | $12,600 |
The average total cash price, cost per watt and typical system size for a solar panel system in your state are displayed on the interactive map below, in accordance with data from FindEnergy.com. Prices shown don't factor in tax credits or state incentives. Certain states don't have any FindEnergy solar data and are grayed out on the map.
Read more: Just looking for an emergency backup? Check out portable solar panels for home use and solar generators.
Solar panel incentives and rebates in Arkansas
Thanks to tax incentives and net metering programs, choosing to power your home with solar energy can make your utilities more affordable. One of the most impactful includes the federal residential clean energy credit offering a 30% tax credit on solar systems purchased from 2022 until the end of 2032. The credit drops to 26% in 2033 and 22% in 2034 before phasing out in 2035. It's important to point out though, that Arkansas does not offer property tax exemption. No exemption means a solar system may increase your home's value and, therefore, your property taxes could increase.
Here's a look at solar incentives available in Arkansas:
Arkansas solar incentives
| Program | Description |
|---|---|
| Net metering | A program in which excess energy generated from your solar system is sold back to the utility company for credits on your next electricity bill. Net metering in Arkansas applies to systems under 25 kW. Check with your local utility company for details. Systems installed after Sept. 30 will be credited less than the 1:1 rate under a new "net energy billing" system. |
| Residential clean energy credit | Apply through the IRS and receive a 30% federal tax credit for solar panel systems installed from the start of 2022 through the end of 2032. It will lower to 26% in 2033 and 22% in 2034. It is set to expire in 2035 unless it is renewed again. |
| Rural Energy for America Program | This initiative of the Department of Agriculture provides grants and loan guarantees for farmers and other rural businesses interested in solar panels or other energy efficiency projects. |
How solar-friendly is your state?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here's how your state scored on CNET's solar policy test.
Arkansas
Grade: F
Incentives available:
- Retail rate net metering (for systems installed before Sept. 30, 2024)
Strongest scoring categories:
Arkansas offers net metering at the full retail rate, allowing solar panel system owners to exchange their excess electricity on the grid for credits to pull from the grid when their solar panels aren't producing enough energy for the household.
Categories to improve:
Though retail rate net metering is a very strong policy, Arkansas has nothing else in the way of solar incentives, and that policy is ending. The state has no property or sales tax exemptions, state solar tax credits, low-income rooftop solar programs or community solar programs.
Solar financing options for Arkansas residents
Explore the following payment options for purchasing a solar panel system. Review CNET's solar buying guide and consider each option's potential benefits and drawbacks.
Cash: If you want the quickest return on investment and to take advantage of tax incentives, consider making a cash purchase or a solar loan. The upfront costs of a cash purchase are high but have no interest or fees.
Loan: If you don't have the cash to pay for a system upfront but still want to own your own solar panels, consider a loan. Solar companies often have partners with lenders offering solar-specific loans, and you can also buy panels using home equity loans, home equity lines of credit or personal loans.
Lease or power purchase agreement: If you're interested in lower upfront costs, you should explore solar lease and power purchase agreement options. While you won't benefit from incentives, solar leases and PPAs provide the benefits of solar without ownership. In a solar lease, you pay a fixed monthly price to the solar company that owns the panels. In a PPA, you pay a price based on the energy used.
Installation factors to examine
Consider the following five questions when determining if installing solar panels is right for your home.
- Are you part of an HOA? There are no laws prohibiting homeowners' associations in Arkansas from banning solar panels. Check the rules of your HOA or other neighborhood association to ensure you follow any guidelines.
- Do you own or rent your home? Renters may inquire with landlords about getting solar panels or pursue opportunities like community solar through subscription services.
- Does your home insurance cover solar panels? Contact your homeowners insurance company to ensure your current policy covers solar panels.
- What is the condition of your roof? Depending on the age and wear of your roof, maintenance and repairs may be necessary before installing solar panels.
- Where is your home? Consider outdoor elements that may shade your roof, such as large trees or nearby buildings. Solar panels can generate some electricity while shaded but perform best in direct sunlight.
How we found the best solar companies
The companies we listed above as "the best" are curated from CNET's best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we've completed a full review on a company or not, it's always a good idea to get multiple quotes from different installers before choosing a company.
FAQs
Does Arkansas have a solar tax credit?
Yes and no. Arkansas residents may apply for the 30% clean energy credit from the federal government and receive electricity credits through the state's net metering program. Arkansas does not have a state incentive for solar panels.
How much do solar panels cost in Arkansas?
The average cost is $32,418 before applying incentives. The cost of solar panels in Arkansas varies based on the number of solar panels, roof repairs, installation costs and other factors.
How do I choose an Arkansas solar installer?
Receiving multiple price quotes from various companies and comparing customer reviews is recommended. In addition to the solar installers listed in this article, you may also consider reviewing CNET's picks for the best solar companies.
Are all solar panels the same?
Not all solar panels are the same. Solar panels can differ from each other in efficiency, size and wattage. Other solar alternatives, like solar shingles, will have varying technical ratings as well.