Arkansas Incentives

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Arkansas Solar Power

Arkansas receives almost as much sun as parts of Florida. Sadly, this clean, renewable energy resource is vastly wasted in the state of Arkansas. Arkansas has one of the lowest solar rankings in the United States. Even with an abundance of sun, Arkansas produces some of the lowest amounts of solar energy per capita in the country. This is not the fault of the people of Arkansas, but rather a result of bureaucratic delays. Solar Power systems help lower energy bills, and lower our carbon footprint. So why isn’t it being used?

State Incentives

As recently as 2013 the Arkansas state government failed to pass a major renewable energy bill. The bill would have encouraged homeowners to buy residential solar power Arkansas and opened up the state of Arkansas to the growing green energy market. This is one of the issues that have hampered the development solar energy Arkansas.

Arkansas currently has no Renewable Portfolio Standard. A Renewable Portfolio Standard sets a goal for the percentage of electricity the state should produce from renewable energy resources. Having an RPS is important because it encourages the state government, utility companies, residents, and business owners to think about how as a state they can reduce their carbon footprint. An RPS is helpful because it puts pressure on state level legislation to form incentives that encourage citizens and businesses to begin using solar power Arkansas.

Although Arkansas currently offers no sales and property tax exemptions, it does have state rebate programs for solar panels Arkansas. The rebate programs can reduce the costs incurred by residents who use solar power to generate electricity and heat water. The Arkansas Energy Office began offering these rebates in 2010. After applying for the rebate, the Arkansas Energy Office will pay up to $1.50 per kilowatt-hour produced by little rock residential solar panels, for example. A resident can apply online at A resident can apply online at or visit DesireUSA to view all the Arkansas solar incentives

Arkansas does not currently offer net metering for homeowners who use residential solar power. However, individual utility providers do offer net metering. Utility providers monitor the amount of solar electricity generated by a resident. Then, the utility company decides to buy solar power Arkansas generated by the system and feeds it to their power grid. Utility providers count the solar energy generated against resident’s power bills. Any excess solar power generated beyond the homeowner’s bill is rolled over against the costs of the next bill.

Federal Tax Incentives

The federal government offers tax credits for homeowners who decide to buy home solar panels Arkansas. With the future of energy production pointing towards solar power, our federal government has stepped up its initiatives to encourage both residential and business use. Residents who use solar power systems are eligible for a federal tax credit of up to 30% of the installation and operating costs of solar panel and plate systems. Should the tax credit exceed an individual’s federal income tax, it will roll over to be used as credit during the next tax period.

To apply for the federal solar tax credit complete IRS form 5695 with your regular tax return. This form is used to calculate the value of your federal tax credit. To complete the application, file the information from form 5695 with your 1040.

123SolarPower is your destination for solar energy solutions in Arkansas. Our partners carry the most advanced equipment in the industry. Installing solar panels at your home can provide a variety of benefits. Do not hesitate to use our solar calculator Arkansas that will help you find your potential savings today! To receive a free estimate on installation costs please fill out the above form for our experts. Our solar professionals will help guide you through the savings available to you. If you prefer to speak with one of our solar power experts call us at 800-294-2397.Do not hesitate to use our solar calculator Arkansas that will help you find your potential savings today, or read our FAQ to find answers to some of the most common solar questions.

Frequently Asked Questions

When making any modifications to the home, questions always arise. In order to discern whether adding solar panels is a good idea for a given home, having answers to the most frequently asked questions can help. These answers can not only help a homeowner decide whether or not to install solar panels on their home, but they may also help to alleviate some fears and/or concerns that homeowners have about solar power.

Will solar panels benefit my home if I do not have constant access to the sun?

It is a myth that only sunny places like California and Hawaii can benefit from the installation of solar panels. While solar panels do generate more power in areas that have more access to the sun, there are solar panels that are capable of capitalizing on diffused solar rays. These are the kind of solar rays that fall on overcast days.

What incentives are available to me?

There are many incentives in place to help convince homeowners to install solar panels. For example there are tax credits at both the state and federal levels. While the tax credit value varies by state, to the credit ranges to upwards of 25% on installation up to $1,000. Furthermore, most solar power devices are sales tax exempt. The federal tax credit is 30% on installation with no limit. For more information about tax incentives in your state, call 800-294-2397 to speak with a solar consultant.

What is the difference between on the grid and off the grid?

On the grid refers to one still being attached to the electric grid and essentially creates a solar/electric hybrid system. Off the grid refers to relying solely on solar power as the home is completely disconnected from any electric grid.

While solar panels may be expensive to install, the long-term savings (both personally and as a member of society) really outweigh the upfront costs. Moreover, the tax breaks available (through 2016) can also help to recoup some of the costs.

Adding solar panels to your home can benefit you in many ways—including tax credits and a decrease in your electric bill. For more information, please complete the online form or call 800-294-2397.

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