The state of solar power in Arkansas
Arkansas is well-placed to take advantage of solar energy. The state averages approximately five peak solar hours daily and has around 219 days with sunlight per year. This amount of sunlight means that Arkansas homes with solar power can expect to generate enough electricity to meet their needs regularly, especially during the summer months.
Despite this, Arkansas ranks 34th in the nation, dropping an astonishing 16 places from 18th in 2018. One of the reasons for this is that Arkansas has no state-level incentives or rebates for using solar power. You still may qualify for the 26 percent federal tax credit if you purchase solar,* which makes installing solar an appealing prospect in Arkansas.
- *. Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information.
How much solar power does Arkansas produce?
As of December of 2019, 160.69 MW of solar power has been installed in Arkansas, which represents only 0.36 percent of the state's total power generation. It is only enough solar to power 19,000 homes. This number should rise to approximately 696.83 MW in the next five years, mainly due to significant investments from the solar industry.
The majority of Arkansas' solar power installations occurred in 2018, with a massive spike in utility companies installing solar panels. The residential market is slowly taking off with the help of the federal tax credit* and a very appealing net metering system policy which provides residents the ability to receive credit on their electric bill for each kWh of electricity they produce, beyond what they use, and send back to the grid.*
- *. Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information.
- *. Utility credits and incentives vary by location and are subject to change. Please visit the dsireusa.org website for detailed solar policy information.
Is solar power generation feasible in Arkansas?
In general, solar power generation is feasible in Arkansas due to its relatively mild climate and amount of sunny days. Arkansas has one of the highest solar energy rating potentials in the United States, based on the amount of sunlight it receives.
Currently, thanks to the net metering policy, solar power generation works out to be a net positive for Arkansas residents. However, Arkansas does have one of the lower power prices in the country. Residents pay approximately 10c per kWh for electricity from the grid, which is well under the national average of 13c per kWh. A net metering policy provides homeowners and businesses the ability to sell excess energy produced by their solar system back to the grid.*
What this means is that it will take longer for solar panels to make a good return on investment. Homeowners can expect to see a return on their investment within 18 years of installing a solar power system. However, this doesn't take into account the increase in property values that may come along with a solar system.
- *. Utility credits and incentives vary by location and are subject to change. Please visit the dsireusa.org website for detailed solar policy information.
How much does solar cost in Arkansas?
Homeowners who purchase solar and qualify for the federal income tax credit may receive a 26% tax credit for the purchase price of their system.*
- *. Tax credits subject to change. SunPower does not warrant, guarantee or otherwise advise its partners or customers about specific tax outcomes. Consult your tax advisor regarding the solar tax credit and how it applies to your specific circumstances. Please visit the dsireusa.org website for detailed solar policy information.
What legal considerations affect solar power in Arkansas?
Currently, Arkansas has no state incentives to support residential solar installations. With the federal tax credit scheduled to decrease to 22% in 2021 and end in 2022, now is the best time to consider installing solar panels at home.
Two recent bills have passed that will help make solar energy more affordable in Arkansas. The first, Senate Bill 145, allows for third-party purchasing of solar systems and increases the solar size limit. This bill allows for solar system leasing, which puts solar installations in the reach of many more Arkansas residents.
The second bill encourages utility companies to make the switch to more renewable forms of energy, including solar.
How can I start using solar in Arkansas?
With appealing net metering incentives and a federal tax credit that is going to expire soon, now is the perfect time to start using solar power in Arkansas. Whether you are a homeowner, business or homebuilder, SunPower has services and products to suit your needs. Request a free savings estimate to get started and find out how much you can save with SunPower® solar.

SunPower® Design Studio
See what your home looks like with solar
SunPower currently creates thousands of solar designs per week for our customers. Now we can create thousands per second.