Key insights
A typical residential solar system costs $12,339 to $24,677 in Arkansas.
Jump to insightIt takes solar panels approximately 17.86 years to pay for themselves in Arkansas.
Jump to insightOver 25 years, Arkansas homeowners with solar panels avoid $16,822 in total utility costs on average.
Jump to insight6 factors to consider before getting solar panels in Arkansas
ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including several from Arkansas. Here’s what to consider before making the switch.
1. Solar panel installation costs
Average solar panel costs in Arkansas are comparable with the national average. A typical residential solar panel system costs $20,007 in Arkansas. That doesn’t include a solar battery, which can add $7,000 to $18,000 to your total system costs.
Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Arkansas, the average cost per watt is $2.47.
Solar panel costs by system size in Arkansas
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before any incentives | $12,339 | $14,806 | $17,274 | $19,742 | $22,210 | $24,677 |
2. Your current energy consumption
It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have older electrical appliances, upgrade those before investing in solar panels.
You get the most out of solar if most of your appliances are electric. If you also have an electric vehicle, solar panels will save you even more. (This may seem obvious, but solar panels generate electricity. They won’t help you save on gas bills.)
A typical Arkansas household needs a system with a capacity of 8.1 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.
Did you know?
Some homeowners pair solar with battery storage for more energy independence and backup power during outages. Grid-tied systems need battery storage or another backup setup to keep powering a home during an outage.
3. Arkansas solar incentives
The 30% federal residential solar tax credit has expired, and Arkansas offers few statewide incentives for homeowners. After your system is installed, net billing lets you earn credits for extra solar power sent to the grid.
What to know about net billing in Arkansas
Instead of traditional net metering, Arkansas now uses a lower-credit net-billing structure for most new solar customers. Customers who qualified for legacy net-metering status can keep 1:1 retail credits until June 1, 2040.
Most new Arkansas solar customers receive credits at a lower utility rate rather than the full retail rate. That means you’ll usually save more by using your solar power at home.
It’s smart to check with your local utility provider about current rates. Another solar customer we talked to, Curt in Benton, was excited to go solar in 2021. “We were told that the net metering rate would be 1:1, and that the cost for the loan would offset the standard electric bill we were used to paying,” Curt told us. “However, we later found out when receiving our bill from the utility company that they do not have a 1:1 net metering rate and instead it is around 40%.”
4. How long you plan to stay in your house
It takes years for electric bill savings to make up for the initial cost — about 17.86 years on average in Arkansas. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.
Solar panels last 25 to 30 years.
A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years. But, you miss out on some of that $16,822 in total avoided utility costs over 25 years.
In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.
5. How you pay
It’s great if you can pay for the whole thing upfront. Of course, cash isn’t always an option. That’s when loans and leases come into play.
Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.
Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.
Monthly costs: solar payments vs. savings
Compare what you’d pay each month with solar to what you pay for electricity now. Ideally, your solar loan payment plus any remaining utility bill should be lower than your current electric bill.
» SOLAR PANELS: Lease vs. buy
6. The solar company you hire
In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.
One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.
Pros and cons of solar panels in Arkansas
It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely pay less than you would for traditional utility bills.
Pros
- Long-term savings
- Better for the environment
- Low maintenance costs
- May increase home resale value
Cons
- Upfront costs
- Seasonal production variations
- Potential roof leaks
- May make your house harder to sell
Is my house a good candidate for solar panels?
Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:
- How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Arkansas averages 3.5 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — makes your solar system less efficient.
- What is the size and angle of my roof? Arkansas (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
- What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.
Find solar companies in Arkansas
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Arkansas’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Green Home Systems | Learn More | 1.0 |  | Cash, loan | 2017 |
 Tesla Energy | Learn More | 1.9 | | Cash, loan and lease | 2015 |
 ShopSolar | Learn More | 4.5 |  | Cash, loan | 2018 |
Arkansas solar FAQ
What are the benefits of going solar in Arkansas?
Going solar has several benefits in Arkansas:
Cheaper energy bills: The average homeowner in Arkansas uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). It also protects you from future energy cost increases.
Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
Higher home resale value: Installing solar panels can increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
More energy independence: Embracing solar paves the path toward true energy independence. It works especially well for people in areas susceptible to power outages.
What are the drawbacks of going solar in Arkansas?
Going solar has a few drawbacks in Arkansas:
Solar equipment is expensive: Solar panel prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.
Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
Could make your house harder to sell: Solar panels can make a home harder to sell if they’re leased or financed, since the buyer may have to take over the agreement. Some buyers may also worry about roof repairs, maintenance or whether the system will actually save them money.
Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
» MORE: Solar energy pros and cons
How much can I save with solar panels?
On average, Arkansas homeowners with solar panels avoid $16,822 in total utility costs over 25 years.
» EXPLORE: Where solar savings go the furthest
Will hail damage my solar panels?
It’s true that hail can damage solar panels, but you shouldn’t let that deter you from installing them. Many solar panels can withstand smaller hail. The cost of fixing any damage that does occur may be covered by your homeowners insurance.
How long does it take to install solar panels in Arkansas?
Installation times depend on a range of factors, especially seasonality and supply chain issues. The actual installation might take only a day, but it takes time to design, plan and activate the system.
Is it cheaper if I install solar panels myself?
It’s potentially cheaper to install your solar energy system yourself, but it’s difficult and dangerous if you don’t know what you’re doing, especially for a large residential project.
» DIY SOLAR PANELS: Pros, cons and installation guide
Bottom line: Is going solar in Arkansas worth it for you?
Going solar in the Natural State isn’t just a green move; it's often a smart money move. With electricity costs continuing to rise, more homeowners find solar power is financially worth it in the long run.
Solar costs vs. savings: Arkansas and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Arkansas | $14,806 | $24,677 | 8.1 kW | $2.47 | $16,822 |
| Louisiana | $16,007 | $26,679 | 5 kW | $2.67 | $12,171 |
| Mississippi | $16,011 | $26,685 | 5.2 kW | $2.67 | $15,211 |
| Missouri | $15,220 | $25,366 | 10.9 kW | $2.54 | $29,087 |
| Oklahoma | $14,154 | $23,589 | 7 kW | $2.36 | $29,807 |
| Tennessee | $18,277 | $30,462 | 6.7 kW | $3.05 | $2,846 |
| Texas | $13,148 | $21,914 | 7.1 kW | $2.19 | $80,284 |
Article sources
- DSIRE, "Arkansas Programs." Accessed Sept. 11, 2026.
- EnergySage, "The cost of solar panels in Arkansas." Accessed Sept. 11, 2026.
- Solar Energy Industries Association, "Arkansas Solar." Accessed Sept. 11, 2026.
- SolarReviews, "How much do solar panels cost in Arkansas?" Accessed Sept. 11, 2026.
- Arkansas Democrat-Gazette, “Solar power bill sent to governor's desk.” Accessed Sept. 11, 2026.
- University of Arkansas System, “Net Metering Policies.” Accessed Sept. 11, 2026.
