Arkansas Solar
Incentives & Rebates

Updated March 8, 2021

Arkansas Energy Incentives

Sunny Arkansas has some laws favorable for solar power and renewable energy. Plus, the Federal solar investment tax credit (ITC) applies and is currently worth 26% of the cost of your system; it gets deducted from your income tax.

Arkansas Net Metering

Net metering laws are quite strong in Arkansas. Net metering is when solar panels or other renewable energy generators are connected to the public utility, and surplus power is transferred into the grid. You not only save by producing your own clean energy, but you effectively sell the excess to the power company in the form of a credit on your power bill.

In Arkansas, Federal Tax Credit Is Biggest Incentive

The solar Investment Tax Credit (ITC), is worth 26 percent of the system cost, and will be deducted from your federal income tax. Keep in mind that the federal ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), not to those who lease it. The percentage goes down a bit in 2021, another reason to go solar today.


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