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Solar Panel Cost in Arkansas (2023 Local Savings Guide)
In this EcoWatch guide on the cost of solar panels in Arkansas, you’ll learn:
- What the average cost of going solar in Arkansas is
- How solar system sizes affect installation costs in Arkansas
- How Arkansans can save money when going solar
- Which local installation companies have the best prices
This guide has helped thousands of Arkansas homeowners save time and money when going solar by teaching them exactly what affects installation costs in the Natural State. Let’s get started!
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How Much Do Solar Panels Cost in Arkansas?
The cost of solar panels in Arkansas is $2.54 per watt on average, which is lower than the U.S. national average of $2.66 per watt. An 11-kilowatt solar panel system is the size that most Arkansas residents install on their homes to offset the average energy bill of $110.1
Using these figures, a solar power system has an average cost of $19,558 in Arkansas (after receiving the 30% federal solar tax credit). However, this is just an estimate, and various factors will affect the total cost of a solar energy system for your Arkansas home. We’ll dig into these below.
SunPower
Best National Provider
Pros
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
Cons
- Expensive
- Customer service varies by local dealer
Seal Solar
Outstanding Local Installer
Local Service
Average cost
Pros
- Outstanding customer service
- Great warranty coverage
- Representatives are experts on local policies
Cons
- Limited service area
- Limited brands of solar equipment available
- No leases or PPAs
ADT Solar
Best Warranty Coverage
Pros
- Industry-leading warranty coverage
- Expansive service area
Cons
- Some reported communication issues
- No leases or PPAs
Watch Below: Why Your Electric Bill Is So High — and Could Keep Climbing
How Do Arkansas’ Solar Installation Costs Vary Based on System Size?
The below table shows the average cost of solar panel systems in Arkansas before and after factoring in the 30% federal solar tax credit. The size of your solar energy system directly correlates with how much energy it can produce.
If you’re hoping to eliminate your electricity bills completely, the size of your system is critical to achieving your goals. Many Arkansas homeowners can completely offset their power bill and sell energy back to the grid with net metering.
| Size of Solar Panel System | Arkansas Solar Panel Cost | Cost After Federal Tax Credit |
| 8 kW | $20,320 | $14,224 |
| 9 kW | $22,860 | $16,002 |
| 10 kW | $25,400 | $17,780 |
| 11 kW | $27,940 | $19,558 |
| 12 kW | $30,480 | $21,336 |
| 13 kW | $33,020 | $23,114 |
| 14 kW | $35,560 | $24,892 |
Want to see the best solar companies in Arkansas that offer affordable, high-quality systems? Click here.
See also: Find out how much solar power your roof can produce with our solar calculator
What Determines the Cost of Solar Panels in Arkansas?
Estimating what your solar panel system will cost in Arkansas is challenging because many different factors affect your total. Most homeowners in the area pay between $14,224 and $24,892 for their systems after the federal investment tax credit (ITC) is applied. Below we’ll discuss some of the main factors that affect the price of your system.
Solar Equipment
The first major consideration in the price of your solar system is the type of equipment you want and the brand of panels you’ll have installed.
Arkansas is home to plenty of extreme weather events, including hurricanes, tornadoes, intense thunderstorms, ice storms and hail. As a result, most homeowners choose solar panels that come with a lengthy warranty to keep their investments protected.
More durable panels with more comprehensive warranties tend to cost a bit more, so your prices could end up being higher than the national average. Weather events also lead to frequent power outages, so solar batteries, while expensive, are a common add-on product in Arkansas.
On the other hand, Arkansas residents enjoy 217 sunny days per year, which is more than the national average of 205. With sunlight that is both ample and intense (given the location in the southern U.S.), most Arkansas residents don’t need to invest in the most efficient equipment, which also tends to be the most expensive.
Solar Financing in Arkansas
Your payment method will play a role in your total cost of going solar.
Cash payments cost the most up front but let you avoid interest. Solar financing lets you pay little or no money up front but you’ll end up paying more for your system in the long run because of the interest. Leases and power purchase agreements are also no-money-down options, but they’re generally not recommended, as they tend to save you the least amount of money.
Arkansas offers Property Assessed Clean Energy (PACE) financing through the Advance Arkansas PACE program. This financing option provides affordable financing for energy-efficient home improvements, including solar equipment.
Unfortunately, there is no specific financing program in Arkansas for low-income households. The only other option available is the Rural Development Department of the U.S. Department of Agriculture’s (USDA) Rural Development Energy Programs. However, these programs are only for agricultural producers and small businesses.
Read Also: UA Fayetteville Campus to Be Powered By Solar Energy
Arkansas Solar Installation Company
As is the case with any home improvement project, the company you choose to handle your solar panel installation can have an impact on your pricing. Each company prices its installation services differently, and each can upcharge equipment, which will raise prices, or offer discounts to lower prices.
Local solar companies in Arkansas — like Seal Solar and Sun Valley Renewables — tend to have higher pricing than the national companies, but they often provide better customer service and can still compete by providing equipment discounts. The national companies that serve Arkansas — like SunPower and ADT Solar — often buy equipment in bulk and pass the savings on to you.
It’s also important to look at the types of equipment offered by the solar installers in your area, as this can affect your pricing as well. For example, Seal Solar installs panels made by Solar Edge, Silfab and Tesla. These brands are relatively affordable, although they don’t have the same efficiency or best-in-class warranty as the Maxeon panels installed by SunPower.
Read Also: This Arkansas School Turned Solar Savings into Better Teacher Pay
Additional Considerations and Costs
The factors discussed above are the primary ones to account for when estimating your cost of going solar, but there are some additional things to consider, some of which can alter your pricing as well. We’ll discuss these other factors below.
- Permits: All municipalities in Arkansas will require that you pull a permit for the installation and pass the necessary inspections. Your solar installer will very likely handle this process for you, but you should expect the cost of the permit to be added to your total.
- Licenses: Arkansas requires all solar panel installers to have quite a few licenses, including a contractor license and an electrician license. Licensing doesn’t directly affect your cost, but more requirements for your installer do generally equate to a slightly higher average cost.
- Warranties: All major solar panel manufacturers in Arkansas offer an equipment warranty, and all reputable solar installers will provide a warranty for the workmanship and installation labor. The longer the warranty, the better, although the best warranties in the solar industry usually come with the pricier equipment.
- HOAs: Arkansas is one of the few states in the country that doesn’t have solar rights and access laws. As such, private entities like homeowners’ associations can prevent you from installing solar panels on your home.
- Environmental zoning: In some cases, zoning laws can prevent you from installing solar, although this generally pertains to ground-mounted solar. The laws in Arkansas are conducive to most homeowners opting in to solar.
Learn More About Purchasing Solar Panels
Arkansas Solar Panel Incentives
Although fewer solar rebates and tax incentives are available for Arkansas residents than homeowners in other states, the somewhat limited options are better than nothing. Since solar panel installations can present steep upfront prices, every little bit can help reduce costs.
| Arkansas Solar Incentive | How it Affects the Cost of Solar Panels in Arkansas |
| Net Metering Program | Arkansas has solid net metering policies, which enable homeowners to send the excess power their solar energy system generates back to the local power grid in exchange for credits from their utility companies. These credits can be put toward future utility bills. |
| Local Solar Rebates & Incentives | Depending on your municipality and utility company, there may be additional incentives available to you. We recommend doing some research to ensure you’re maximizing your savings. |
| Federal Solar Tax Credit | The federal solar investment tax credit (ITC) is available to all U.S. homeowners. It’s currently valued at 30% of installed system costs. The credit will decrease to 26% in 2033 and 22% in 2034 before expiring in 2035. |
Read Also: Why Solar Usage is Soaring in Arkansas
The Best Solar Panel Brands Available in Arkansas
The brand of equipment you choose can have a significant effect on your pricing, as we mentioned above. Choosing a brand that suits your energy needs (meaning that it provides adequate efficiency) and your budget is crucial.
The table below includes some relative pricing for the best solar panel options in Arkansas to give you an idea of which ones might be suitable for you and your home.
| Solar Panel Brand | Average Cost Per Watt ($-$$$$$) |
| LG Solar | $$$ |
| Canadian Solar | $$ |
| JA Solar | $$ |
| Mission Solar | $$ |
| Panasonic | $$ |
| Q Cells | $$ |
| REC | $$$ |
| Silfab | $$$ |
| SunPower | $$$$$ |
| Tesla | $$ |
| Trina Solar | $$$ |
Ready to see what size system your home needs and what it will cost you? Check out our preferred solar providers below, and a reputable installer in your area will provide you with a free estimate.
Read More About Going Solar
FAQs: Solar Panel Cost Arkansas
We get questions every day from homeowners looking for information about electricity rates, warranties, interconnection, and other solar-related topics. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
On average, solar panels cost about $2.54 per watt in Arkansas. For an 11-kilowatt system, the cost checks out to about $19,558 (after the federal solar tax credit).
Of course, several factors may drive the price up or down. We recommend reaching out to at least three reputable local solar energy providers for personalized, free quotes for your home to get an idea of how much it would cost you to go solar. Some companies offer complimentary consultations, which can help you get a narrow idea of how much your system will cost.
Yes, solar panels can increase your Arkansas home’s property value. On average, your solar energy system raises the value of your home by about 4.1%.
Considering the median cost of homes throughout the state is $169,962 at the time of publication, that can mean approximately $6,968 in added value. However, that may be more if you live in a more expensive area, like Little Rock, or less if you live in an area with less expensive homes, like Ozark.
The additional home value can benefit homeowners who sell their homes prior to breaking even on their investments. Although the added value may not cover the entire purchase price of your solar solution, it may cover a considerable portion of what you paid.
No, solar panels aren’t free in Arkansas.
As you begin your search for the best solar company to handle your solar installation, you may see advertisements claiming you can get free solar panels. Generally, these ads are trying to get you to sign a lease or power purchase agreement (PPA).
The “free” solar panel ad is usually a marketing gimmick to bring in new clients. If you’re interested in a solar lease/PPA, you may be able to take advantage of the deal. However, we recommend doing extensive research on the company of interest to ensure it’s a reputable choice.
Arkansas receives plenty of sun, an average of 217 sunny days per year. This is higher than the national average annual of 205 sunny days. Given the abundance of sunlight, the possibility of eliminating your energy bills via solar energy is very high in Arkansas. With that said, the amount of power your solar energy system produces hinges on various factors.
For example, if you live in the shade of several trees, your solar energy system may not have adequate access to sunlight which will prevent you from being entirely “off-grid.” While the possibility of eliminating your electricity bills for your Arkansas home via solar panels is there, several variants may impact how much you can actually save. All utility companies in Arkansas allow net metering, which helps significantly.
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- Most efficient panels on the market
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- Cradle to Cradle sustainability certification
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- Expensive
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A+Best National Provider1985SunPower Panels25-year all-inclusive warranty
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