How Much Do Solar Panels Cost in Arkansas? (2024 Savings Guide)

How Do Arkansas’ Solar Prices Compare to the National Average?

Arkansas homeowners see per-watt solar panel prices that are well below the national average. The local average is around $3.17, while most other states pay $3.33 per watt. That means each dollar you spend goes a little further in Arkansas than it would in most other areas throughout the country.

However, the total system costs in Arkansas are well above average, in large part because energy demands are so high, and larger and more expensive systems are needed to offset the above-average consumption.

The typical cost of a solar energy system in Arkansas is $34,870 before the tax credit, which is about $5,000 higher than the national average of $29,970. After the credit, the typical cost in Arkansas is $24,409, which is still close to $4,000 above the national average of $20,979. Although your money goes further on a per-dollar basis, you’ll still need to spend more for a larger system to accommodate your electricity demands.

What Are the Main Factors of Solar System Costs in Arkansas?

There are a few things at play in Arkansas that lead to above-average total system costs. Some of the most influential factors include the following:

• The above-average energy needs of Arkansans
• The outstanding net metering policy in Arkansas
• The abundant sunlight available in the state

We’ll explain how these factors play into average local system costs in the following sections.

The High Energy Demands in Arkansas

Since per-watt pricing is below average in the area, the biggest reason Arkansans pay more for their solar arrays than most U.S. residents is that they need larger systems, which naturally cost more.

The average monthly energy consumption per household in Arkansas is 1,060 kilowatt-hours (kWh), according to the Energy Industries Association. This is well above the national average of 881 kWh, which means residents need more panels to offset their energy demands. More panels mean more watts, which translates to higher installation costs.

The average system size in the U.S. is 9 kW, so the additional 2 kW required in Arizona adds approximately $6,200 to your total.

The Excellent Local Net Metering Policy

Thankfully, Arkansas residents have access to an outstanding net metering policy, which lets solar customers overproduce energy for their homes when the sun is shining and bank the excess to use for free when it isn’t.

Most importantly, the net energy metering (NEM) policy in Arkansas mandates that customers get credited at the full retail rate for excess electricity sent to the power grid.

Net metering is one of the best solar perks available in the state, as it drastically increases your chance of eliminating your electric bills or minimizing your effective electricity rates, provided you size your clean energy system appropriately.

With this net metering policy in place, solar batteries become a matter of preference rather than a recommendation. They will provide electricity through power outages, but they won’t pay for themselves since they don’t provide any monetary benefit that net metering doesn’t already. Declining to install solar batteries — which we recommend in your area — saves $10,000 or more on your system installation costs.

The Abundant Sunlight in Arkansas

Finally, Arkansas sees around 217 sunny days per year, which is above the national average of 205. With more sunlight availability, panels have a good chance of generating sufficient energy to offset electricity costs and even eliminate your energy bills.

In states with fewer sunny days per year, it’s often necessary to invest in high-efficiency panels like those from Maxeon to get the most value out of the solar energy that is available. In Arkansas, most customers can get away with choosing a less expensive panel with a slightly lower efficiency rating.

Since panels with leading efficiency ratings tend to be more expensive, this leads to lower average system totals in Arkansas than in many states that demand higher efficiency ratings.

We still recommend a high-efficiency brand and just adjusting your system size down if applicable, as these panels usually come with superior warranties and durability.
Watch Below: Learn What Arkansas’ Solar Outlook Is and What That Means For You

Additional Costs of Going Solar in Arkansas

The panels and major add-on products — like solar batteries and electric vehicle (EV) chargers — typically make up the bulk of your solar conversion costs. However, there are some other things that can contribute to your total. We’ll briefly discuss these additional costs below.

• Building permits: All cities and counties in Arkansas require that you pull building permits before any major work is completed on your home, including solar panel installation. Building permits come with application fees, which usually fall between $25 and $350 in Arkansas. The specific amount you’ll be charged is based on where you live in the state, and your local building department or your installer should be able to tell you the total.

• Additional system equipment: In addition to solar panels and any big add-on products, your system will require wiring, conduit and inverters to be connected to your home, as well as mounting brackets to be attached to your roof. These pieces of equipment are sometimes charged separately, although they should only total a few hundred dollars.

• Interconnection application and inspections: Before your solar energy system can be connected to the grid, your power company will require that you or your installer file for interconnection. The application or the inspection required thereafter often comes with a filing fee or inspection fee. In most cases, the fee totals less than $125 in Arkansas, but you should check with your utility company or installer to see what you’ll be charged. Your installer usually handles the application and pays the fee at first, but the cost is passed on to you.

• Product markup and administrative charges: Finally, your installer might include a markup on the equipment it installs, and it may charge separately for administration actions, like filing for interconnection or local solar benefit programs. These will usually only account for a few hundred dollars on your final solar installation bill, if anything.

What Maintenance Costs Can Solar Owners Expect in Arkansas?

While installing a solar array in Arkansas comes at a high price, there should be no additional fees you need to pay after the installation for maintenance. Any issues that arise with the panel components or production will typically be covered under warranty and won’t require any payment out-of-pocket from you.

Some homeowners pay for things like panel cleaning, which removes dirt and debris from the panels one to two times a year. These services usually cost between $100 and $150 per visit.

Although clean panels do have a higher rate of production, panel cleaning isn’t necessary in most cases in Arkansas. The state sees nearly double the national average amount of rainfall per year, and the rain should keep your panels plenty clean.

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Which Solar Financing Options Will Help You Save the Most in Arkansas?

There are four main payment options for solar equipment: a cash purchase, a solar loan, a solar lease and a power purchase agreement (PPA). Your access to these will depend on the installer you choose, as not every company accepts leases and PPAs.

A cash purchase is self-explanatory: you pay for your system in cash upfront, which leads to immediate panel ownership. Paying in cash is not realistic for many Arkansas residents, especially given the above-average price of a PV system in the area. However, we recommend it if you can make it work, as cash payments lead to the fastest possible panel payback period and maximize your solar savings over time.

With a solar equipment loan, you pay a small down payment — and often nothing at all — upfront. You agree to make monthly payments on your system over eight to 20 years until it’s paid off. You will pay interest, which bumps up your total system cost and cuts into your savings, but this option is much more accessible.

A solar lease is where you rent the panels for a monthly fee and get to use the energy they generate to offset your energy rates. Leases save far less over time than cash purchases and solar loans. They also never lead to panel ownership, which means you can’t take the federal solar tax credit — an average potential value of $10,461 in Arkansas.

A PPA is when you get panels installed for free, and you agree to buy energy at a slightly reduced rate from your solar company for a specific term. PPAs also don’t let you take the federal solar tax credit, and they usually lead to minimal savings in the long run.

It’s also worth mentioning that leases and PPAs don’t boost your home value like the other options do, and they can complicate the sale of your home.

If you want to keep your options open, we suggest considering SunPower or Tesla for your system installation, as both companies operate in Arkansas and accept all four financing options.

Alternatively, you can use our solar calculator to get an accurate estimate of what your system will cost and then use the following table to decide which is the most beneficial option that will fit into your budget.

What Are Other Ways You Can Save When Going Solar in Arkansas?

Choosing the right financing option for you is a great way to keep your system price down, but there are some other money-saving strategies you can employ. These include the following:

• Take advantage of the solar tax incentives and rebates in Arkansas
• Optimize your efficiency and per-watt costs
• Consider solar batteries carefully

In the following sections, we’ll explain how each of these strategies can save you some money on your solar panel system.

Take Advantage of Arkansas’ Solar Incentives

Solar incentives are one of the most effective and easiest ways to save money on your solar project in Arkansas.

All residents have access to the federal tax credit, which holds an average potential value of more than $10,400. This perk alone can effectively save 30% of your entire system cost.

There are also quite a few local benefit programs and solar rebates available from companies like Entergy Arkansas, First Electric Cooperative, North Arkansas Electric Cooperative and more that can bring down your system total by hundreds of dollars.

Optimize Your Panel Efficiency

In many states, we recommend maximizing panel efficiency within a given budget to get the most value out of the available sunlight. However, Arkansas homeowners see above-average sunny days per year and have access to an outstanding one-to-one net metering program. That means most customers can save some money by choosing less efficient panels and still have the opportunity for massive energy savings over time.

We still recommend choosing high-efficiency panels for the durability and performance, but opting for an upper-to-mid-tier efficiency rating — like panels from QCells, SolarEdge, JA Solar and Jinko Solar — can help save hundreds of dollars on your system and still have a good opportunity for savings over time.

Consider Solar Batteries Carefully

Finally, we recommend avoiding solar batteries unless you’re looking for the convenience of being able to maintain electricity through power outages. The biggest benefit solar batteries provide is effective net metering in areas where net energy metering isn’t available.

Since batteries add a minimum of around $10,000 to your equipment costs and don’t provide any financial benefit to Arkansans — who have access to an outstanding statewide NEM program — you can save quite a lot of money by avoiding them.

What Are the Typical Costs of Arkansas’ Solar Installers?

A significant chunk of the installation total you’ll pay for a solar array comes from the labor, and every solar installation company in Arkansas charges different prices for their labor. As such, the company you choose to handle your solar project will play a major role in your all-in pricing.

The table below includes some relative pricing information for what we believe are the five best solar companies in Arkansas. This should help you estimate which installers are most likely to fit into your budgetary constraints.

How Are Solar Costs and Regulations Trending In Arkansas?

According to the Solar Energy Industries Association (SEIA), the cost of solar equipment in Arkansas has gone down by 54% in the last decade alone. That means the cost of a system — which, today, averages $34,870 in AR — would have totaled more than $68,000 a decade ago.

We believe the drastic decline in pricing is largely due to advancements made in the manufacturing process. Since solar is only growing in popularity, we expect more advancements to be made in the coming years, which should bring an additional decline in panel pricing in the area.

Arkansas is one of the few states without a renewable portfolio standard (RPS) goal, and since RPS goals often drive when new solar perks are offered and existing ones are discontinued, it’s tough to say if there will be any changes to incentive programs or solar rebates in the area in the near future.

If something were to change, we’d expect it to be the net energy metering policy. Currently, the NEM program is outstanding and highly profitable for solar customers. Since net metering policies have been changing across the country, it’s possible Arkansas’ policy will disappear or, more likely, drop to an avoided cost or wholesale rate for excess energy credits.

Since prices are lower than ever before and there’s the potential for incentives to decline in the near future, now is a great time to convert to renewable energy in Arkansas. You can use the tool below to get free quotes customized for your home from reliable installers in your area.

Read More About Going Solar

• What Are the Best Solar Companies in Arkansas?
• Are Solar Panels Worth It in Arkansas?
• How Much Can You Save With Solar Incentives in Arkansas?

The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.