2025 Solar Incentives Guide for Bentonville, AR - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Bentonville?

Source: https://www.dsireusa.org/

Solar incentives are intended to encourage homeowners to switch to renewable energy by offering financial incentives that lower the burden of solar panel installation and use. Various types of incentives, including discounts, cash back or credit towards your monthly utility bill, may be available to you. Certain incentives may be handled by the Arkansas government, by your utility company or by county or municipality, while other incentives are federal. You might qualify for any of the following types of solar incentives:

• Tax Exemptions: These might come in the form of property tax exemptions, which let you exclude the value of your solar system when paying property tax on your home. They may also include exemptions on sales tax at the time of purchase.
• Net Metering: You can sign a net metering agreement with your Bentonville utility company. This agreement may apply to all or a percentage of the excess electricity that is generated by your solar panels. They will then deduct this value from your utility bill each month.
• Tax Credits: Different from tax deductions, tax credits reduce, dollar-for-dollar, the amount of income tax that you owe the government.
• Rebates: Solar rebates might be provided by your local utility company, or by your state or county. These rebates are essentially partial refunds that are applied after you purchase solar panels and before tax credits are calculated.

Federal Solar Incentives

Federal solar incentives are likely to be the first thing that comes to mind when thinking about solar incentives. The Federal Solar Investment Tax Credit, or ITC, is the best-known federal solar incentive. The ITC allows you to claim a tax credit for a predetermined percentage of the cost of your solar system.

The ITC can be applied to solar systems installed after January 1, 2006, on a primary or secondary residence in the United States that you own. Initially, the credit applied to 30% of the total cost – for panels, accessories, labor and equipment – although that amount may range from 26-30%, depending on when your solar system was installed. There is no cap on the claim amount.

Curious how the ITC might apply to your specific situation? Reach out to your local Bentonville solar panel installer to get more information.

The Inflation Reduction Act, passed in August 2022, made some changes to the ITC (as well as renaming it to the Clean Energy Credit). The new Clean Energy Credit now runs until 2035. American homeowners can now apply for a 30% credit for solar systems that began installation after January 1, 2022, and are completed by the end of 2032. This new credit will then see a slight annual decrease until it expires. Beginning in 2023, it will also be easier to get credits for energy storage systems under the new laws.

Click here to learn more about the new Inflation Reduction Act. Your local Bentonville solar panel installer can answer any questions you have and explain how the new Clean Energy Credit may apply to you.

State & Local Solar Incentives

There are more than just federal solar incentives; rebates, tax credits and more may be offered at the state and local level. Some incentives are ongoing, while others are only available for a limited time. Incentives may be offered by the Arkansas government, or by your county or municipality.

Next Steps for Installing Solar in Bentonville

There are many kinds of solar incentives: those provided by local utility companies, those provided by the Arkansas government and those offered by the federal government, to name a few. Solar energy utilization has increased enormously in the last 15 years, thanks to these incentives. Getting in touch with your local Bentonville solar panel installer is the best first step towards making sure you get all the incentives you qualify for when you switch to solar energy.