3 Best Solar Companies in Arkansas of January 2024 – MarketWatch

The cost of a solar power system in Arkansas is around $2.67 per watt, meaning a 6 kW system costs around $16,020. This rate is slightly lower than the national average of $3 per watt, so it’s generally slightly cheaper to go solar in Arkansas than in other states.

The table below shows the average system costs for our picks for the top installers in Arkansas, along with other information about each company.

*Pricing is based on responses to two surveys we conducted in 2023 of 2,000 total homeowners with 8 kilowatt (kW) solar systems as well as pricing information obtained directly from SunPower, Tesla, Palmetto and local providers. Your cost may vary.

**BBB ratings are accurate as of April 2023.

Deciding whether you should go solar in Arkansas is relatively simple — if you want to save money on electricity and reduce your carbon footprint, the answer is likely yes. But deciding on a solar company is a little more complex. Here are a few factors to consider when choosing a solar provider:

Arkansas is home to 36 solar panel system installers, according to the SEIA. We recommend SunPower or ADT Solar for homeowners looking for the most experienced installer, while residents seeking multiple financing options should check out Blue Raven. Similarly, homeowners who prefer a company with top-notch customer service and industry-leading warranties may like Shine Solar. 

Overall, different installers will suit the needs of different homeowners across the Natural State. We recommend getting free quotes from at least three companies to better compare which solar contractor suits you best.

Arkansas residents who go solar can enjoy the following benefits:

• Electricity bill savings: Even though Arkansas ranks among the 10 states with the lowest retail electricity rate, residents can still save a significant amount of money by installing solar panels. In addition to offsetting your energy bills, you can expect a return on your investment within 10 to 15 years of buying solar in Arkansas. Considering most solar panels work for 25 years, this means you can enjoy increased energy savings for a decade or more after paying off your system.
• Protection from rising energy costs: Over the past two decades, power costs in American households have steadily climbed at an annual rate of 4.3%. Homeowners who install solar panels own their energy, securing themselves against rising energy costs over time.
• Security against power outages: Residents of Arkansas are no strangers to devastating storms — the state saw 39 tornadoes in 2022. These storms are often followed by power outages. With solar batteries, you can keep your home’s power running through an outage for multiple days.
• Environmental benefits: Among the key advantages of solar power are the ecological benefits. Each solar power system can offset thousands of pounds of carbon emissions, helping to combat the state’s carbon footprint.
• Increases home value: Multiple studies show that homes with solar power sell for a higher price compared to similar homes without panels. In other words, installing solar panels is a home improvement project that both increases your house’s value and lowers your energy bills.

The state of Arkansas does not have a large number of state-mandated, renewable energy incentives or rebates. However, the federal solar tax credit and net metering can help customers save money when going solar.

Federal Incentives

The most valuable solar energy incentive available to Arkansas residents is the federal solar tax credit, or the investment tax credit (ITC). This program offers U.S. homeowners a federal tax credit equal to 30% of their total solar system cost, which you can deduct from your income tax burden the year you install a system. The credit can effectively lower your net system cost by thousands of dollars, shortening your payback period.

But keep in mind that this incentive is a tax credit, not a refund or rebate. If you cannot use the full credit amount after you claim it, you can roll over the remainder for up to five years.

State-Wide Incentives

As previously mentioned, Arkansas does not have many state-wide solar incentives. Here is a list of available state-wide incentives:

• Net metering: Arkansas has a net metering program that allows you to send the excess power your panels produce back to the grid in exchange for energy bill credits. While Arkansas currently offers energy credits at the retail rate, the state government may soon pass legislation to lower the rate. 
• Property Assessed Clean Energy (PACE) financing: Commercial customers in Arkansas can finance their solar power systems using PACE financing incentives. The program offers business owners low-cost loans that they can repay with a small addition to their property taxes.

In addition to state incentives, you may be eligible for other benefits offered by your local municipality or utility company. We recommend checking with your local government or electricity provider to learn more.

Learn more about your home services options in our top reviews to see how you can keep your peace of mind.