State solar guide
Arkansas solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 via Electric Choice electricity-prices-by-state | Research dossier south-central.md June 2026 | EnergySage May 2026 (typical 14.75 kW system at $35,128 pre-incentive, averaging $2.38/W) | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Arkansas eliminated 1-to-1 retail-rate net metering for new customers as of October 1, 2024. Customers who had their interconnection agreement filed before September 30, 2024 are grandfathered under the prior full retail net metering policy through September 2040. New customers receive export credits at the MISO (Midcontinent Independent System Operator) or Southwest Power Pool Locational Marginal Price from the prior year's 12-month average for the utility's load zone, which is typically well below the retail rate of 12.73 cents per kWh. The annual true-up for remaining surplus credits is approximately 4 cents per kWh. Entergy Arkansas administers a Non-Legacy Net-Metering Service Schedule for new customers and a Legacy Schedule for grandfathered customers. System size is limited to the lesser of 25 kW or capacity matching the customer's highest-usage month.
Entergy Arkansas is the primary investor-owned utility in Arkansas. Legacy customers (filed by Sept 30, 2024) receive full retail net metering through September 2040 - this 20-year grandfathering is a significant legacy value. New customers receive MISO or SPP LMP-based avoided-cost credits. Southwestern Electric Power Company (SWEPCO) serves southwestern Arkansas under its own tariff. Verify current export credit rates directly with your utility.
Program: NM2_avoided_cost. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Arkansas utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Arkansas homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Arkansas Sales Tax Exemption for Solar Equipment sales_tax_exemption | Estimated $2,200 to $2,700 on a typical 14.75 kW system at 6.5% state rate Residential solar equipment is generally exempt from Arkansas state sales tax. This is one of the few states in the south-central region that provides this exemption, reducing the upfront cost of a system. | Residential solar equipment purchases in Arkansas | Pending | DSIRE (opens in new tab) |
| Arkansas Property Tax Exemption for Solar property_tax_exemption | Full solar-added assessed value excluded Residential solar system value is generally excluded from property tax assessment. The solar installation does not increase the assessed value of the property. | Residential solar installations in Arkansas | Active | DSIRE (opens in new tab) |
| Entergy Arkansas Legacy Net Metering (grandfathered) net_metering | Full retail rate (12.73 cents per kWh) for legacy; MISO or SPP LMP (approximately 4 cents per kWh) for new customers Customers who filed an interconnection agreement by September 30, 2024 are grandfathered under full retail-rate net metering through September 2040. New customers receive MISO or SPP LMP avoided-cost credits. | Legacy: interconnection filed by Sept 30, 2024. New: post-October 2024 interconnection. | Pending | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Arkansas
Arkansas has no statewide battery storage incentive or rebate program as of June 2026. No SGIP-equivalent or battery-specific state credit exists. No utility battery rebates identified for Arkansas residential customers. The Arkansas sales tax exemption on solar equipment may also apply to battery storage components; verify current Department of Finance and Administration guidance.
Savings example
This example uses real Arkansas market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
System size 14.8 kW at $2.38 per watt (EnergySage May 2026). Annual production estimated at 18,000 to 22,000 kWh based on Little Rock area peak sun hours of 4.7 to 5.2. Assumes 80% self-consumption at 12.73 cents per kWh retail plus 20% exported at approximately 4 cents per kWh (MISO LMP annual average). Federal residential credit: $0 (expired). Figures are illustrative; your in-home assessment will use your actual utility bills and current Entergy Arkansas rate schedule.
Arkansas Entergy Arkansas new customer (illustrative, post-October 2024)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Arkansas does not have a statewide residential solar permit fee cap. Permit requirements, fees, and timelines vary by local Authority Having Jurisdiction (AHJ) and municipality. Major metro areas (Little Rock, Fayetteville) typically have permit timelines of 2 to 4 weeks. Entergy Arkansas interconnection review typically adds 4 to 8 weeks after permit issuance. Contract to energization typically runs 10 to 14 weeks.
New customer interconnection uses Entergy Arkansas's Non-Legacy Net-Metering Service Schedule. Understand the export credit structure before committing to a system size, as the MISO or SPP LMP avoided-cost rate makes oversizing uneconomic for new customers.
Commercial solar in Arkansas
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Arkansas business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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