Solar Panel Cost in Arkansas (2022 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!

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 9/27/2022

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SunPower

  • Pros icon Most efficient panels on the market
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  • Pros icon Great warranty coverage
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ADT Solar

  • Pros icon Industry-leading warranty coverage
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Seal Solar

  • Pros icon Outstanding customer service
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  • Con icon Limited service area
  • Con icon Limited brands of solar equipment available
  • Con icon No leases or PPAs

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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.

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

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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.

arkansas solar panel cost

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

solar panel cost arkansas

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.

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.

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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.

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Karsten Neumeister

Solar Expert

Karsten is a researcher, editor, writer and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.