Arkansas Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Arkansas homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,740 in Arkansas, that's a direct tax credit of $5,022. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Arkansas does not currently offer a state-level solar tax credit. However, Arkansas homeowners still benefit from the substantial 30% federal ITC, worth $5,022 on a typical 6kW system. Even without a state credit, solar is economically attractive in Arkansas with electricity rates averaging 12.84¢/kWh.

Arkansas does not currently offer a statewide property tax exemption for solar installations. This means the added home value from solar panels may increase your property tax assessment. Some local jurisdictions may offer their own exemptions — it's worth checking with your county tax assessor. Even without this exemption, the energy savings from solar typically far outweigh any marginal property tax increase.

Arkansas does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Full Retail Rate. Full retail rate 1:1 credits, annual true-up The current system size cap is 25 kW residential.

Arkansas's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 12.84¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.