Arkansas Solar Calculator

Arkansas gets 4.8 peak sun hours and offers 1:1 net metering plus property tax exemption — enter your Entergy AR or SWEPCO bill to see your 30% ITC savings and payback.

Your Arkansas solar inputs

Monthly electric bill?

Utility?

System size?

Battery backup?

Arkansas solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 8.7 kW

Monthly usage1,000 kWh/mo

Annual production (AR 4.8 PSH)11,213 kWh/yr

Annual savings (1:1 net metering)$1,233/yr

Gross system cost$22,000

Federal ITC (30%)-$6,600

Arkansas state tax creditNone available

Net cost after ITC$15,400

Property tax exemption (annual est.)$143/yr

Payback period12.5 yrs

25-year savings$30,835

Arkansas requires 1:1 net metering for systems up to 25 kW (investor-owned utilities). The property tax exemption is permanent — solar added value is excluded from assessed value indefinitely. No state income tax credit currently available. The 30% federal ITC is the primary incentive.

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How to Use This Calculator

Arkansas: solid sun resource with 1:1 net metering

Arkansas averages 4.8 peak sun hours per day — above the national average and among the better solar markets in the mid-South. While Arkansas lacks a state income tax credit (unlike neighboring Missouri or Iowa), the state mandates 1:1 retail-rate net metering for systems up to 25 kW at investor-owned utilities. Combined with a permanent property tax exemption and the 30% federal ITC, Arkansas offers a reasonable incentive package for residential solar. The main challenge is Arkansas's low electricity rate of $0.11/kWh, which extends payback periods compared to higher-rate states.

Enter your bill and select your Arkansas utility

Entergy Arkansas is the largest utility, serving Little Rock, North Little Rock, and much of central and eastern Arkansas at $0.11/kWh. SWEPCO (Southwestern Electric Power Company, an AEP subsidiary) serves Fort Smith and western Arkansas. OEC (Ozarks Electric Cooperative) serves northwest Arkansas including Fayetteville, Bentonville, and Springdale. Select your utility, enter your monthly bill, and choose a system size to see your full savings estimate including net metering credits.

Arkansas property tax exemption: permanent protection

Unlike Iowa's 5-year freeze, Arkansas's property tax exemption for solar energy equipment is permanent. The added value of a solar installation is completely excluded from your home's assessed value for property tax purposes indefinitely. Arkansas's average effective property tax rate is approximately 0.65% — modest by national standards — but the permanent exemption adds meaningful value over the system's 25-year life.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.8 PSH × 365 × 0.80 efficiency ÷ 1000 Self-consumed kWh = Annual Production × 0.65 Exported kWh = Annual Production − Self-consumed kWh Annual Savings = (Self-consumed + Exported) × Retail Rate (AR 1:1 net metering) Gross Cost = System kW × 1000 × $2.75/W + Battery ($12,000 if added) ITC Credit = Gross Cost × 30% Net Cost = Gross Cost − ITC Payback = Net Cost ÷ Annual Savings Property Tax Exemption = System Cost × Property Tax Rate (permanent)

Arkansas averages 4.8 peak sun hours — Fort Smith (4.9 PSH) and Little Rock (4.8 PSH) are the sunniest; Fayetteville (4.7 PSH) in the Ozarks is slightly less due to elevation and weather. Arkansas's $2.75/W installation cost is below the national average, reflecting the growing competitive solar market in the state. The 1:1 net metering policy means every kWh exported earns a full retail credit — the most favorable metering structure for solar owners.

Example

Sarah — Little Rock Entergy Arkansas customer

Sarah is in Little Rock on Entergy Arkansas paying $110/month at $0.11/kWh. She installs an 8 kW system to maximize 1:1 net metering credits and lock in long-term electricity costs.

Monthly bill$110 (Entergy Arkansas, $0.11/kWh)

System8 kW, no battery

LocationLittle Rock, AR (4.8 PSH)

Result

Annual production (4.8 PSH)~13,406 kWh/yr

Annual savings (1:1 net metering)~$1,475/yr

Gross system cost~$22,000

Federal ITC (30%)-$6,600

Arkansas state creditNone

Net cost after ITC~$15,400

Property tax exemption (annual)~$143/yr (permanent)

Payback period~10.4 years

25-year savings~$36,875

Sarah's low Entergy rate extends the payback period compared to higher-rate states, but Arkansas's strong 4.8 PSH sun resource keeps production high. Her 8 kW system produces significantly more than her consumption, generating substantial net metering credits during summer that offset fall and winter bills. The 30% ITC reduces her net cost to $15,400, and the permanent property tax exemption adds $143/year in ongoing savings. Over 25 years, she saves $36,875 — a strong return despite no state credit.

FAQ

How does Arkansas net metering work? ▼

Arkansas law (Act 827 of 2015, amended) requires investor-owned utilities to offer 1:1 net metering for systems up to 25 kW. Exported solar is credited at your full retail rate. Credits accumulate monthly and carry forward. At the end of a 12-month period, utilities compensate remaining credits at the "avoided cost" rate (lower than retail). Entergy Arkansas and SWEPCO both comply with this mandate. Rural electric cooperatives and municipal utilities may have different policies. For most residential installations (up to 25 kW), the 1:1 retail credit significantly improves solar economics.

Does Arkansas have a property tax exemption for solar? ▼

Yes. Arkansas law exempts solar energy equipment from property tax assessment permanently. The added value of a solar installation is not included in your home's assessed value for property tax purposes. This means your property taxes won't increase due to solar — unlike in states without this protection where a $22,000 solar installation could add $143-200/year to property taxes. Arkansas's average effective property tax rate of 0.65% is modest, but the permanent exemption adds meaningful value over the system's 25+ year life, equivalent to $3,500+ in lifetime property tax savings.

Does Arkansas have a state solar tax credit? ▼

No. Arkansas does not currently offer a state income tax credit for residential solar installations. This is the main gap in Arkansas's incentive package compared to neighboring Iowa (15% state credit) or Missouri. The primary incentive for Arkansas homeowners is the 30% federal Investment Tax Credit (ITC), which is substantial. Combined with 1:1 net metering and the permanent property tax exemption, Arkansas still offers a competitive solar package for the mid-South region. Utility-specific rebate programs may occasionally be available — check with Entergy Arkansas or SWEPCO.

Which utilities serve Arkansas solar customers? ▼

Entergy Arkansas is the largest utility, serving Little Rock, North Little Rock, Conway, Jonesboro, Pine Bluff, and much of central and eastern Arkansas. SWEPCO (Southwestern Electric Power Company, an AEP subsidiary) serves Fort Smith, Texarkana, and western Arkansas. OEC (Ozarks Electric Cooperative) serves parts of northwest Arkansas including Fayetteville, Bentonville, Rogers, and Springdale — the fast-growing NWA tech corridor. Some cities like Jonesboro have municipal utilities. All investor-owned utilities must comply with Arkansas's 1:1 net metering mandate for systems up to 25 kW.

How much sun does Arkansas get for solar? ▼

Arkansas averages 4.8 peak sun hours per day — above the national average of 4.5 PSH and significantly better than most northern states. Little Rock and Fort Smith in the south and west average 4.8-4.9 PSH. Fayetteville in the Ozarks averages 4.7 PSH — slightly less due to higher elevation and more frequent cloud cover from Ozark weather patterns. Hot Springs averages about 4.8 PSH. Arkansas's mid-latitude location (33-36°N) and generally clear summers produce strong solar output from April through September, with good production year-round. This makes Arkansas a solid solar state despite its low electricity rates.

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