Solar Incentives and Rebates in Arkansas

Peak Sun Hours (PSH): 4.9-5.0
Cost of Grid Power: $0.10/kWh
Number Of Installations: 2,579

What’s the Cost of Solar in Arkansas?

Cost of Grid Power

Arkansas' electricity prices average $0.10/kWh, well below the national average of $0.14/kWh. On average statewide grid power costs have slightly decreased, down from $0.11/kWh last year.

Cost of a Solar Install

The average cost of a 5.5kW (equivalent to saving over 100 trees a year) solar power system starts around $12,000 in Arkansas. That system would pay for itself through energy savings within 6-7.5 years. System life can span well over 25 years, and savings will improve with inflation.

Solar Energy Step by Step in Arkansas

Today solar accounts for just 0.6% of the state's net power generation. The state has no utility-scale wind farms, though several businesses that manufacture wind turbine components call Arkansas home.

In 2018 Arkansas surpassed 1,500 net metering systems, an increase of more than 50% over the prior year's figures. Under Arkansas' policy system owners are paid a full retail rate credit for energy put into the utility grid. A net-metered photovoltaic system in Arkansas can only generate 25kW, or about 80 standard solar panels. Don't worry though, this is more than enough power generation for even the largest of homes.

Solar Leasing News in Arkansas

Arkansas' legislature moved to allow solar leasing in 2019. Worthy of note, the state public utilities commission will have the power to determine if net metering represents an "undue burden" on non-solar customers. This only makes sense in the context of reduced compensation for grid-tie systems in the works. This means time is of the essence if you want to get a good solar lease in Arkansas!

What Incentives are Available in Arkansas?

Data from DSIRE. For more info visit:

Name Implementing Sector Program Type Administrator DSIRE ID
Advanced Biofuels Tax Credit State Industry Recruitment/Support 32
Energy-Saving Equipment Deduction State Personal Tax Deduction 48
Alternative Fuel Vehicle Conversion Rebate Program State Rebate Program Arkansas Department of Economic Development 213
Solar Energy Equipment Certification State Equipment Certification 440
Disclosure State Generation Disclosure 614
Interconnection Guidelines State Interconnection 778
Alternative Fuels Fund State Grant Program 972
Wind Energy Manufacturing Tax Incentive State Industry Recruitment/Support Arkansas Economic Development Commission 4153
Local Option - Property Assessed Clean Energy Financing State PACE Financing 5408
Arkansas Oklahoma Gas Company (AOG) - Commerial and Industrial Efficiency Rebate Program Utility Rebate Program Arkansas Oklahoma Gas Company (AOG) 5493
Entergy Arkansas - Small Business Energy Efficiency Programs Utility Rebate Program Entergy Arkansas 5494
Entergy Arkansas - Agricultural Energy Solutions Program Rebates Utility Rebate Program 5532
Local Option- Energy Efficiency Project Bonds State Bond Program 5747
OGE- Residential Geothermal Rebate Program Utility Rebate Program 5784
Arkansas Oklahoma Gas (AOG) Residential Rebate Program Utility Rebate Program 5785
Entergy Arkansas - DataLink Utility Energy Analysis Entergy Arkansas, Inc. 14908
OG&E - myOGEpower Utility Energy Analysis Oklahoma Gas & Electric Co. (OG&E) 14909
Arkansas Department Of Environmental Quality - Arkansas Material Exchange Directory State Other Arkansas Department Of Environmental Quality 17087
Arkansas Department Of Environmental Quality - ADEQӳ Pollution Prevention (P2) Program State Other Arkansas Department Of Environmental Quality 17088
Empire District Electric - Missouri Commercial/Industrial Energy Audit Program Utility Energy Analysis Empire District Electric Company 18046
Ozarks Electric Cooperative - Complete Energy Audit Program Utility Energy Analysis Ozarks Electric Cooperative 18368
Carroll Electric Cooperative - Energy Audits for Commercial and Industrial Accounts Other Energy Analysis Carroll Electric Coop, Inc. 18892
Mississippi County Electric Coop - Green Power Other Other Mississippi County Electric Coop, Inc. 20844
Energy Efficiency Arkansas - Resources, Training & Events Other Training and Information Energy Efficiency Arkansas 21970


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