Arkansas solar panels: The complete guide in 2025
Data updated Jul 15, 2025
Ready to go solar in Arkansas? To offset the average typical electric bill, you’ll need a 13.11 kW system, which costs about $22,355 after the federal tax credit.
Cost for an average system in Arkansas
| Out of pocket cost, cash | $31,935 |
| Federal tax credit (30%) | - $9,581 |
| Price post tax credit | $22,355 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $38,041 | 11 Years | 84% |
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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- Overview
- Solar cost
- Incentives
- Companies
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.
Cost
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 13.11 kW solar panel system to cover their electricity needs, which comes out to $31,935 before incentives. Prices range from $27,145 to $36,725, 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 4,100 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 10.87 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 pay for your solar panel system, each with its pros and cons.
Cash purchase: You pay for your system upfront. While it’s the most expensive option initially, it provides the best long-term savings.
Solar loan: You owe little to nothing upfront and make monthly payments on your system. With a solar loan, you get to maintain ownership of your panels. Still, they aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. If not, go with a home equity loan or a personal loan. Private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): You have little to no upfront costs, but a third-party company owns your system. Depending on your contract, you’ll either lease your solar panels (solar lease) or purchase the electricity they generate (PPA). While more affordable upfront, third-party ownership models generally provide the lowest savings and have the worst reputation for reliability. They can be beneficial, but remember to read the fine print.
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Incentives
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:
| Incentive | Average savings in Arkansas | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $9,581 | 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.
At the end of 2024, Arkansas transitioned from net metering to net billing. But if you installed solar panels by September 30, 2024, you’re grandfathered into net metering for the next 20 years.
Equipment
Equipment quality
Solar panels continue to get more efficient, meaning they produce more power per square foot. In 2025, the most popular solar panels can produce about 450 watts of electricity in full sunlight—you’ll want panels with at least that much power output to get the most out of your installation.
It’s also important to choose a solar inverter setup that works for your roof’s layout.
And if you plan to install a solar battery, pick one that can easily integrate with that inverter.
While premium equipment can result in sticker shock, it typically saves you more money in the in the long run: The highest-quality panels degrade at a slower rate and maintain more of their power output for longer, and the best warranty terms often guarantee up to 40 years of coverage in case you need repairs or replacements.
Companies
Who are the best solar installers in Arkansas?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Arkansas:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Arkansas
- Arkansas Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Arkansas Electricity Profile (EIA)
Learn about AR energy production and prices.
- AR State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in AR.
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