
Solar Panel Cost in Arkansas
Updated 2026 guide to solar panel prices, savings, and payback period in Arkansas.
Estimated Solar Savings
Solar Panel System Costs in Arkansas
Below are estimated costs for different solar panel system sizes in Arkansas, including the 30% federal solar tax credit.
| System Size | Cost Before Incentives | Federal Tax Credit (30%) | Net Cost | Est. Annual Production |
|---|---|---|---|---|
| 4 kW | $11,600 | -$3,480 | $8,120 | 6,716 kWh |
| 6 kWMost Popular | $17,400 | -$5,220 | $12,180 | 10,074 kWh |
| 8 kW | $23,200 | -$6,960 | $16,240 | 13,432 kWh |
| 10 kW | $29,000 | -$8,700 | $20,300 | 16,790 kWh |
| 12 kW | $34,800 | -$10,440 | $24,360 | 20,148 kWh |
What Affects Solar Panel Cost in Arkansas?
The average cost of solar panels in Arkansas is $290/watt before incentives. For a typical 6kW residential system, that means a total cost of about $17,400 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), your net cost drops to approximately $12,180.Arkansas homeowners typically see a payback period of 9 years and save an estimated $27,000 over 25 years.
Solar costs in Arkansas have fallen roughly 40% over the past decade. Recent policy improvements have made solar energy an increasingly attractive option for homeowners.
Factors that affect your cost:
- System size: Larger systems cost more but have a lower cost per watt
- Equipment quality: Premium panels and inverters cost more but offer better efficiency
- Roof complexity: Steep roofs, multiple levels, or shading can increase installation costs
- Local labor rates: Installation costs vary by region within Arkansas
- Incentives: State and local programs can significantly reduce your out-of-pocket cost

Solar Incentives in Arkansas
Federal Solar Investment Tax Credit
30% Federal Tax Credit (ITC)
Arkansas residents can take advantage of the 30% federal solar tax credit to significantly reduce installation costs.
State & Local Incentives
Net Metering
Net MeteringArkansas has a strong net metering policy that allows solar customers to receive full retail rate credits for excess generation.
Net Metering
Arkansas requires investor-owned utilities and electric cooperatives to offer net metering at full retail rates for systems up to 25 kW.
AvailableSRECs
Arkansas does not currently have an SREC market or solar carve-out in its renewable energy standards.
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Solar Panel Cost FAQ - Arkansas
The cost of solar panels in Arkansas typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Arkansas can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Arkansas solar installers to find the best price.
The average solar payback period in Arkansas depends on local electricity rates, available incentives, and sun exposure. Most Arkansas homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Arkansas solar installer can calculate your specific payback period based on your energy usage and roof characteristics.
Arkansas homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Arkansas continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Arkansas-specific incentives helps maximize your return on investment.
The right solar system size for your Arkansas home depends on your electricity consumption, roof space, and budget. The average Arkansas home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Arkansas's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Arkansas solar installer will use satellite imagery and your usage data to recommend the optimal system size.
Yes, solar is generally worth the investment for Arkansas homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Arkansas is strong. Most Arkansas homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Arkansas home is to get a free, customized quote from a qualified local installer.
Solar Panel Costs by City in Arkansas
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