Cost of Solar Panels in Arkansas: Local Solar Installation Prices (2022)
Here’s a quick look at the estimated cost of solar in Arkansas:
- Average Cost Per Watt: $2.54
- Cost of Average System: $20,676*
- Cost of Energy Without Solar: $43,507
- Payback Period: 14 Years**
- Lifetime Savings of Going Solar: $15,567
*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.
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Cost of Solar Panels 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 $20,676 in Arkansas (after receiving the 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.
Solar Panel System Installation Cost in Arkansas
The below table shows the average cost of solar panel systems in Arkansas before and after factoring in the 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|
Want to see the best solar companies in Arkansas that offer affordable, high-quality systems? Click here.
What Determines the Cost of Solar Panels in Arkansas?
Several factors determine the cost of solar panels for your Arkansas home. Three primary categories represent the main sources of input for the overall cost: the solar equipment you install, the financing option you choose and the solar installation company that handles your solar project.
As with most products available on the market today, solar photovoltaic panels come in a variety of specifications, brands and quality levels. The type of equipment you choose to install plays a significant role in your total cost. Generally, high-efficiency, high-wattage solar panels are more expensive than their less-efficient, lower-wattage counterparts.
Some homeowners may find that the higher-efficiency and -wattage monocrystalline panels are ideal for their needs. And despite the elevated price tag, they’re often worth it, as they offer a higher return on investment over time.
You can estimate the number of solar panels you’ll need based on how much sun your home gets, the area of your roof and your past utility bills. If you plan on purchasing a power-hungry appliance or electric car in the future, you may want to account for that potential extra energy use to save on upcoming electricity bills.
When you decide to incorporate a solar renewable energy system into your home, you have three primary options for payment: cash purchase, solar loan or lease. Buying with cash is always the more cost-effective option, as the price you see on your solar estimate is the price you pay — no extra payments or hidden fees will be tacked on down the line.
A solar loan is not as cost-effective as paying the balance in full, as you will likely accrue interest, which drives up the overall cost. However, whether you buy your solar panels outright or take out a loan, you can take advantage of the federal solar tax credit, reducing your overall price considerably.
Solar leases are the least cost-effective option. They don’t let you take full advantage of the cost savings solar panels provide, as you’re not eligible for any financial incentives, like the federal tax credit, if you don’t own the system.
Solar Installation Company
The particular solar installation company you choose also contributes to your system’s total price. As you browse through the solar companies that serve Arkansas, you’ll likely notice price differences from company to company.
Some companies give much higher solar quotes than their competitors, which usually results from higher overhead costs, different types of panels (with higher efficiencies) or other factors. This doesn’t mean that you should go with a different company, though — you should choose a trustworthy company that both fits within your budget and offers high-quality installations.
Arkansas Solar Incentives
Although fewer financial 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||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 26% of installed system costs, but it will be reduced to 22% in 2023 and will disappear for residential systems in 2024 unless the federal government extends it.|
Best Solar Panel Brands and Installed Solar System Costs in 2022
As mentioned, the solar equipment you choose will play a role in how much your solar system costs in Arkansas. Here are how the top solar panel brands compare in terms of average cost per watt:
|Solar Panel Brand||Average Cost Per Watt ($-$$$$$)|
People Also Ask
EcoWatch FAQ: Solar Panel Cost Arkansas
We get questions every day from homeowners looking for information about electricity rates, warranties, interconnection and other solar-related topics. Here are some of the questions we see most often from readers in Arkansas:
On average, solar panels cost about $2.54 per watt in Arkansas. For an 11-kilowatt system, the cost checks out to about $20,676 (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%.2 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.3 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 cheaper 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.