Solar Panel Cost In Arkansas

Solar energy is becoming an increasingly attractive option for homeowners in Arkansas looking to reduce their electricity bills and environmental impact. But how much do solar panels actually cost in the Natural State? 

As of 2024, the average cost of solar panels in Arkansas is $2.73 per watt, with a typical 5 kW system costing around $13,625 before incentives. 

However, after applying the 30% federal solar tax credit, the average cost drops to about $9,538, making solar more affordable for many Arkansas residents. 

While this upfront investment may seem significant, solar panels can provide substantial long-term savings on energy costs, with the average Arkansas homeowner saving over $23,000 over the 25-year lifespan of their solar system. 

In this article, we’ll break down the costs, factors, and incentives that influence solar panel pricing in Arkansas to help you determine if going solar is the right choice for your home.

Average Solar Panel Costs in Arkansas

When considering solar panels for your home in Arkansas, it’s important to understand the typical costs involved. Let’s break down the average prices you can expect to pay in the Natural State.

Cost Per Watt

In Arkansas, the cost of solar panels is typically measured in dollars per watt. As of August 2024, homeowners can expect to pay between $2.37 and $2.89 per watt for their solar installation. This price range includes both equipment and installation costs.

Typical System Sizes And Costs

The size of your solar system will significantly impact the total cost. Here’s a breakdown of average costs for different system sizes in Arkansas:

System Size	Total Cost (before incentives)	Cost After Federal Tax Credit
4 kW	$10,900	$7,630
5 kW	$13,625	$9,538
6 kW	$16,350	$11,445
7 kW	$19,075	$13,353
8 kW	$21,800	$15,260
9 kW	$24,526	$17,168
10 kW	$27,251	$19,075

Keep in mind that these prices are after applying the 30% federal tax credit, which significantly reduces the upfront cost of going solar.

Comparison to national average

Arkansas homeowners will be pleased to know that solar panel costs in the state are generally lower than the national average. While the U.S. average hovers around $3.00 per watt, Arkansas residents enjoy prices starting at $2.37 per watt. 

This makes Arkansas an attractive state for solar investments, potentially leading to quicker payback periods and greater long-term savings.

Factors Affecting Solar Panel Costs in Arkansas

Several key factors influence the cost of solar panels in Arkansas. Understanding these can help you better estimate the potential cost for your specific situation.

System size

As mentioned earlier, the size of your solar system plays a significant role in determining the overall cost. 

Larger systems generally have a lower cost per watt due to economies of scale, but they also have a higher total price tag. Your energy consumption and available roof space will help determine the appropriate system size for your home.

Equipment Type And Quality

The type and quality of solar equipment you choose can significantly impact the cost. There are two main types of solar panels for residential installations:

• Monocrystalline: These panels are more efficient and typically more expensive.
• Polycrystalline: These panels have a lower efficiency rating but come at a lower price point.

Additionally, the type of inverter you select (string inverters vs. microinverters) and whether you opt for a solar battery storage system will affect the overall cost.

Installation company

The solar installation company you choose can also influence the price. While it might be tempting to go with the lowest bid, it’s essential to consider the company’s reputation, experience, and the quality of their work. 

A reputable installer may charge more but could provide better long-term value through superior workmanship and customer service.

Location Within Arkansas

Your specific location within Arkansas can affect solar panel costs due to factors such as:

• Local labor costs
• Permitting fees
• Roof condition and complexity
• Shading and sun exposure

These location-specific factors can cause prices to vary even within the same state.

Solar Incentives and Rebates in Arkansas

Taking advantage of available solar incentives can significantly reduce the cost of your solar panel system in Arkansas.

Federal Solar Tax Credit

The most significant incentive available to Arkansas homeowners is the federal solar investment tax credit (ITC). As of 2024, this credit allows you to deduct 30% of the cost of your solar panel system from your federal taxes. This substantial incentive can save you thousands of dollars on your solar installation.

State-Specific Incentives

While Arkansas doesn’t offer a state-specific solar tax credit, there are other benefits for solar owners:

• Net metering: Arkansas utilities are required to offer net metering, allowing you to earn credits for excess energy your system produces.
• Property tax exemption: Solar panel systems are exempt from property tax assessments in Arkansas, meaning your property taxes won’t increase due to the added value of your solar installation.

Always check with your local utility and a tax professional to ensure you’re taking advantage of all available incentives.

Calculating Solar Panel Costs and Savings

To determine if solar is a good investment for your home, it’s crucial to calculate both the costs and potential savings.

Payback Period

The payback period is the time it takes for your solar savings to equal the initial cost of your system. In Arkansas, the average payback period ranges from 9 to 12 years, depending on factors such as system cost, energy usage, and local electricity rates.

Long-Term Savings

While the upfront cost of solar panels can be significant, the long-term savings can be substantial. Over 25 years (the typical warranty period for solar panels), Arkansas homeowners can potentially save $50,000 to $60,000 on electricity costs.

Using Solar Calculators

To get a more accurate estimate of costs and savings for your specific situation, consider using an online solar calculator. These tools take into account factors such as:

• Your location
• Roof size and orientation
• Current electricity usage
• Local electricity rates

By inputting this information, you can receive a customized estimate of system size, cost, and potential savings. 

Many solar installation companies also offer free consultations and quotes, which can provide even more accurate estimates tailored to your home.

Choosing a Solar Installation Company in Arkansas

Selecting the right solar installation company is crucial for ensuring a quality installation and long-term satisfaction with your solar panel system. Here’s what to consider when choosing an installer in Arkansas.

Top-Rated Companies

Arkansas has several highly-rated solar installation companies. Some of the top-rated installers in the state include:

• Sunrise Solar: Based in Bentonville, this company has excellent customer reviews and specializes in residential solar installations.
• PowerSync Solar LLC: Operating across multiple states, PowerSync Solar is known for its personalized approach and ongoing customer support.
• Good Faith Solar: Located in Bentonville, this company focuses on transparency and high-quality American-made products.

When researching companies, look for those with positive customer reviews, proper licensing and certifications, and substantial experience in the Arkansas solar market.

Getting Multiple Quotes

It’s always wise to obtain quotes from multiple solar installers before making a decision. This approach allows you to:

• Compare pricing and system designs 
• Evaluate different equipment options 
• Assess each company’s customer service and expertise 
• Potentially negotiate better terms

Aim to get at least three quotes from reputable installers. Remember, the cheapest option isn’t always the best – consider factors like warranty coverage, equipment quality, and the company’s track record alongside the price.

Is Solar Worth It in Arkansas?

Determining whether solar panels are a good investment for your home in Arkansas requires careful consideration of several factors.

Factors to consider

Electricity rates: Arkansas has relatively low electricity rates compared to the national average. While this means lower potential savings, it also means solar can still be a hedge against future rate increases.

Sun exposure: Arkansas receives ample sunlight, with an average of 217 sunny days per year, making it suitable for solar energy production.

Roof condition: The age, orientation, and shading of your roof can impact the efficiency of your solar panels.

Long-term plans: If you plan to stay in your home for many years, you’re more likely to see a return on your solar investment.

Environmental impact: Beyond financial considerations, many homeowners value the environmental benefits of solar energy.

Comparing Solar To Utility Costs

To determine if solar is worth it for you, compare the levelized cost of solar energy to your current utility rates:

Levelized cost of solar: In Arkansas, the levelized cost of solar power over 25 years is approximately 5.6 cents per kWh.

Utility rates: The average cost of utility power in Arkansas over 25 years (assuming a 3.5% annual increase) is about 21.9 cents per kWh.

This comparison suggests that solar can indeed be a more cost-effective option in the long run for many Arkansas homeowners.

Conclusion

Solar panel installation in Arkansas offers a promising opportunity for homeowners to reduce their electricity costs and environmental impact. 

With average costs ranging from $2.37 to $2.89 per watt, and a typical 6 kW system costing between $9,941 and $12,151 after the federal tax credit, Arkansas ranks as one of the more affordable states for solar installations.

While the upfront costs may seem significant, the long-term savings, coupled with available incentives like the federal tax credit and net metering, make solar an attractive investment for many Arkansas residents. 

The average payback period of 9 to 12 years, followed by substantial savings over the 25+ year lifespan of the system, further enhances the appeal of going solar.

Frequently Asked Questions

1. How Much Does It Cost To Install Solar Panels In Arkansas?

The cost to install solar panels in Arkansas is approximately $2.73 per watt. This means that the total cost will depend on the size of the solar system you need, but generally, this rate makes solar installation relatively affordable in the state.

2. Are Solar Panels Worth It In Arkansas?

Yes, solar panels can be worth it in Arkansas. The state’s sunny climate and relatively low solar panel pricing make it a viable option for reducing energy costs and increasing energy independence.

3. Do Solar Panels Increase Home Value In Arkansas?

Yes, installing solar panels in Arkansas can increase home value by around 4.1%. This boost in property value is a significant benefit for homeowners considering solar energy.

4. How Much Does A 100W Solar Panel Cost?

A 100W solar panel kit typically costs between $150 and $300. This price range can vary based on the brand, quality, and additional components included in the kit.

5. How Much Money Will I Save If I Install Solar Panels?

By installing solar panels, you can save an average of $1,530 on your annual energy bills. The exact amount depends on your energy consumption and the size of the solar system you install.

6. Can You Sell Solar Energy Back To The Power Company In Arkansas?

Yes, you can sell solar energy back to the power company in Arkansas through net metering. This allows you to sell any excess electricity generated by your solar panels back to Southwest Arkansas Electric Cooperative Corporation (SWAECC) or other utilities, offsetting your energy costs.