Find out if solar panels are right for your home in Arkansas.
Solar energy is not just a buzzword—it's a growing industry with substantial benefits for homeowners. It is no different in Arkansas.
The state enjoys an average of 218 sunny days per year and 80% of buildings are solar-viable. We’ll get into what solar-viable means in this article.
Major projects like the Stuttgart Solar Energy Center are setting the pace for solar in Arkansas. Commissioned in 2018, the facility spans 475 acres and produces 81 megawatts of electricity.
But what does this mean for you? As a homeowner, you're likely interested in how solar can lower your electricity bill, especially given that the average solar panel cost in Arkansas is around $2.60/W. While there are federal tax credits available, it's essential to note that Arkansas doesn't offer state-level incentives. However, the state's generous net metering policy could be a game-changer for your utility bills.
There's a lot to consider, but this article aims to be your go-to guide for making an informed decision about solar energy in your Arkansas home.
The average price for a home solar panel system in Arkansas is $18,360 or about $3.06 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Arkansas | $15,420 | $25,700 | $7,710 | $2.57 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $12,850 | $8,785 |
| 6 kW | $15,420 | $10,542 |
| 7 kW | $17,990 | $12,299 |
| 8 kW | $20,560 | $14,056 |
| 10 kW | $25,700 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
We’ll be honest, when you think of solar, Arkansas is not the first state that comes to mind. But that really only applies to the incentives. There aren’t many to choose from. Incentives shouldn’t be the only factor to sway your decision because the sun and solar pricing have a big impact.
The average price for solar in Arkansas is right around the national average at $18,360, and that’s before the federal incentive. Then, the weather and sunny days run at an average of about 218 days a year, which is great at about 60%. This provides ample savings to begin to chip into the large investment.
The next biggest impact is having a generous net metering policy across the state. Net metering allows you to gain credits when you over produce on power, then use those credit when you aren’t producing. So while there aren’t many additional incentives, net metering can be a big factor all on it’s own because it helps to make your system’s production more efficient.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Arkansas. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Don’t forget about Solar Incentives! While there is the Federal 30% Tax Credit that came from the Inflation Reduction Act, there may be others that are statewide or local.
Check to see if you are eligible for solar incentives, they could significantly reduce the cost of solar panel installation. While some incentives are statewide, others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in Arkansas. But hey, this isn't the end-all-be-all list. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Advanced Biofuels Tax Credit | AR | Financial Incentive | Industry Recruitment/Support |
| Energy-Saving Equipment Deduction | AR | Financial Incentive | Personal Tax Deduction |
| Alternative Fuel Vehicle Conversion Rebate Program | AR | Financial Incentive | Rebate Program |
| Solar Energy Equipment Certification | AR | Regulatory Policy | Equipment Certification |
| Net Metering | AR | Regulatory Policy | Net Metering |
| Interconnection Guidelines | AR | Regulatory Policy | Interconnection |
| Biodiesel Production Incentive | AR | Financial Incentive | Performance-Based Incentive |
| Biodiesel Suppliers Tax Credit | AR | Financial Incentive | Corporate Tax Credit |
| Small Business Revolving Loan Fund | AR | Financial Incentive | Loan Program |
| Green Building Standards for State Facilities | AR | Regulatory Policy | Energy Standards for Public Buildings |
There are hundreds of solar companies in Arkansas. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
In the articles we provide, we try to provide you with the best information possible, including warnings because not everything is peaches and cream. Even while seeming like you are trying to do something good for the planet, people have gotten caught up in bad contracts and agreements.
Arkansas Attorney General Tim Griffin is also trying to be diligent about this issue. He has sent warning letters directly to solar companies operating in the state, reminding them of their legal obligations under the Arkansas Deceptive Trade Practices Act.
The advisory comes in response to a few bad apples in the solar industry. He aims to curb deceptive trade practices such as predatory sales tactics, false information about tax rebates and grants, and improper installations. The letter highlighted issues like sellers falsely implying partnerships with electrical utilities, promising no-cost electricity, and not providing contracts to customers, especially those who speak Spanish. Violations of the Trade Practices Act could result in fines of up to $10,000 per incident, with fines doubling for victims over 60.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Arkansas decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Arkansas can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Arkansas is $18,360 for a 6kW system or about or about $3.06 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
One of the great perks of solar panels is their low maintenance. However, to ensure they keep producing clean, green power, a few key maintenance steps are recommended.
Another benefit of solar panels is their longevity. Most come with a 25 to 30-year performance warranty which spans their Effected Useful Life (EUL). While the EUL is supposed to give you an estimate of how long the equipment will last, solar panels often continue to produce power long past this timeframe, just not as effectively as they used to. However, with anything, it's crucial to delve into the fine print to understand precisely what's covered.
The inverter is a critical component that converts direct current (DC) from your panels into alternating current (AC) for your home. Inside the inverter are electro-magnetic parts that move quickly and often. Because they have these moving parts, inverters have a shorter lifespan than the panels themselves. Know ahead of time that you will have to replace the inverters at least once during the lifespan of your panels. This should be factored into your long-term cost considerations.
Great question! Some homeowner's insurance policies may cover solar panels, but it's wise to double-check. You might need to add a separate rider or explore different insurance providers to ensure everything is adequately protected.
While solar panels seem straightforward with no moving parts, taking on a DIY installation might not be the best choice for most homeowners. The primary challenges lie in the intricate electrical work. Mistakes can not only damage the expensive system but also pose safety risks, especially if you're not an electrician. Before attempting a DIY project, consider getting a professional quote. You might be surprised to discover that labor costs are a relatively small part of the overall expense.
When it comes to selecting the right solar panels for your home, you'll typically encounter two main types: Monocrystalline and Polycrystalline. Each has its pros and cons, making the choice a bit of a balancing act.
Keep in mind that due to the efficiency difference, you may need a few more poly-panels to match the output of mono-panels. Additionally, various factors such as your roof's weight capacity, area, angle, orientation, and budget should influence your decision. To make an informed choice, it's best to consult a professional solar installer who can assess these factors and provide a tailored recommendation for your specific situation.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
