Cost of solar panels in Arkansas (2024)

How much do solar panels cost in Arkansas?

With professional installation, a typical 8-kilowatt residential solar panel system in Arkansas costs $21,360. That price drops to $14,952 after the full federal solar investment tax credit (ITC).

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar energy systems in Arkansas is 11.19 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar installation cost by system size in Arkansas

Are solar panels worth it in Arkansas?

We think solar panels are worth it in Arkansas. A solar power system is a good investment if you want to save money on future electric bills and reduce your carbon footprint.

It also makes sense for energy independence. For example, Joe in Mountain View installed solar panels on a cabin for the cost savings. “There's no electricity down there and this is the sole electrical source,” Joe said. “There's no telling what it would have cost me to get electricity there.”

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Just be sure you understand the deal you’re getting. Curt in Benton was excited to go solar but had a negative experience with a solar company. He said reps misled him about Arkansas’ net metering rate and overall costs.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

If your house is a good candidate for solar, it’s worth it if you like the idea of lower monthly utility bills and more energy independence. Over 25 years, homeowners with solar panels avoid $67,139 in utility costs on average. If you also have an electric vehicle, solar panels will save you even more.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Arkansas

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

The cost of solar panels varies based on the solar panel efficiency and the size and weight of your panels. In Arkansas, you can expect to pay around $2.85 per watt for solar panels. Here are some average costs you can expect for other equipment:

• Storage batteries: $7,000 to $18,000
• Inverters: $1,000 to $3,000
• Monitoring system: $80 to $400

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before you go solar.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can.

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

How to save money on solar panels in Arkansas

There’s no way around it: Solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Arkansas:

• Compare quotes: Get quotes from at least three or four different solar companies.
• Lower your electrical load: For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: In addition to government incentives, you might be able to take advantage of manufacturers’ rebates.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Arkansas

There are relatively few statewide solar incentives in Arkansas. Consequently, the federal solar investment tax credit (ITC) is the best financial incentive for many.

The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes. The ITC is not a rebate or a refund. It only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

The ITC drops to 26% in 2033 and 22% in 2034.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

» GREENEST STATES: Arkansas ranked 39th in 2024

How can I pay for solar panels in Arkansas?

Affordable financing makes the upfront costs of solar more manageable. For instance, most leases let you start saving from day one with little or no money down.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest).
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Arkansas

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Arkansas.

Bottom line

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Arkansas and other states. Even though Arkansas isn’t the best state for solar, it still ends up being worth it for a lot of residents.

Solar costs vs. savings: Arkansas and nearby states