Solar in Arkansas: is it worth it in 2026?
Arkansas is one of the hardest states to make solar pay for itself. Three things decide that: electricity here is among the cheapest in the country (47th most expensive of 51), its sun ranks 25th, and exported power earns much less than the retail rate. Of the 51 states and DC, Arkansas has the 47th-fastest payback for a typical home.
The average home here pays about $138 a month for 1,076 kWh. An 8.5 kW system sized for that home would knock about $916 off the first year's bills, 55% of the total.
Checked November 12, 2026
What makes solar pay off in Arkansas
- Size the system to what you use during the day, not to your whole year: extra power sent to the grid earns about 35% of the retail rate. A battery, or running the dishwasher, laundry and EV charging while the sun is up, raises the value of every panel.
- Cheap power stretches payback. At 12.9¢ per kWh, the price you pay matters more than anything. At $3.34 per watt, the high end of what companies quote, payback for a typical system here goes past 25 years.
Payback by system size
An average Arkansas home uses about 12,912 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 48% | 4.5 kW | $11,565 | 6,179 kWh | 24 years | $1,323 |
| 74% | 7 kW | $17,990 | 9,611 kWh | 23 years | $3,515 |
| 101% | 9.5 kW | $24,415 | 13,044 kWh | 22 years | $5,698 |
| 128% | 12 kW | $30,840 | 16,476 kWh | 23 years | $3,923 |
The 9.5 kW system has both the fastest payback and the most savings. Assumes exported power earns about 35% of the retail rate, prices rise 2.5% a year and one inverter replacement.
How Arkansas credits power you send to the grid
Reduced credit (net billing)
Net billing with reduced export rates for new systems.
We haven't found a single published export rate for Arkansas, so the calculators assume about 35% of the retail rate. Ask your utility for its rate and enter it.
Before you sign in Arkansas
Check the license. Look the company up with the Arkansas Contractors Licensing Board, by its legal name or license number, and ask for the electrician's license number too.
Arkansas has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Arkansas compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Arkansas | 12.9¢ | 1,373 | 22 years | Reduced credit (net billing) |
| Missouri | 13.3¢ | 1,433 | 15 years | Monthly netting |
| Tennessee | 13.2¢ | 1,338 | 24 years | No statewide rule |
| Mississippi | 14.0¢ | 1,414 | 19 years | Reduced credit (net billing) |
| Louisiana | 12.5¢ | 1,479 | 22 years | Reduced credit (net billing) |
| Texas | 15.4¢ | 1,421 | 20 years | No statewide rule |
| Oklahoma | 13.2¢ | 1,542 | 14 years | Monthly netting |
Questions about solar in Arkansas
How long does solar take to pay for itself in Arkansas?
About 22 years for a typical 8.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Arkansas have net metering?
Not full net metering. Net billing with reduced export rates for new systems.
Is there a solar tax credit in Arkansas in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 8.5 kW system in Arkansas, that credit was worth about $6,554 and brought payback down to 17 years, instead of 22 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Arkansas?
On bill savings alone, not quite: a 13.5 kWh battery at about $15,650 would move about 3,548 kWh of solar power a year from the grid to your evenings in a typical Arkansas home, adding about $4,320 of savings over 15 years. That doesn't cover its price, so the system's payback goes from 22 years to over 25 years; the rest is paying for backup during outages. Time-of-use rates, battery rebates and utility payments for sharing your battery can tip it; try your numbers in the payback calculator.
Is plug-in solar legal in Arkansas?
There's no plug-in solar law yet in Arkansas, so your utility may treat a kit like any rooftop system.
How do I check a solar company's license in Arkansas?
Look the company up with the Arkansas Contractors Licensing Board (aclb.arkansas.gov) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; EnergySage: median quoted price, first half of 2026.