In 2020, Choose Energy reported that Arkansas had the 13th-highest electrical usage in the country. With that much power going through residential houses, homeowners in the Natural State might start considering alternative energy sources. Looking at the cost of solar panels in Arkansas, the average price and potential savings might surprise some people.
With so many factors influencing the actual cost, however, Arkansans might not know how to start budgeting. We’ve got you covered; below, we break down average prices, wattage amounts, net returns, and more. Keep reading for everything you need to know about solar panels in Arkansas.
Average Cost of Solar Panels in Arkansas
Although the state lacks bureaucratic support for solar energy, the average cost of panels in Arkansas falls below the national average of $2.95. Homeowners in the Natural State can expect to pay about $2.63/W for an array. When applied to a typical, 6kW system that comes to about $15,780. That’s nearly two grand less than the average national cost for a solar array of that size.
Although the cost of solar is more affordable in Arkansas than in other states, it’s essential to know how that relates to the cost of traditional power. In the Natural State, homeowners have some of the highest monthly power usage at 1,060kWh on average. However, due to incredibly low electricity rates, Arkansans spend less than usual on utilities.
While solar is affordable here, there’s not a whole lot of upfront incentive to switch. However, plenty of benefits exist for those that have a solid interest in alternative energy. For example, Arkansans purchasing a solar array in 2023 can take advantage of a 30% federal tax credit. Applied to a typical 6kW array, this drops the price from $15,780 to $11,046.
How Much Solar Do Arkansans Need?
While the above calculations show the average cost of solar panels in Arkansas, they don’t consider the actual amount to power your home. To find a more accurate estimate, you’ll need to know your area’s peak sun hours and your typical electricity usage. Let’s give an example of how to do this.
In Arkansas, the average peak sun hours is 4.69 hours. With an average electricity usage of 35.3kWh (1,060kWh/mo), our solar array needs to produce about 7500 watts (or 7.5kW) per hour. Using the average price per watt in Arkansas ($2.63/W), this 7.5kW system will cost $19,725.
Using the metrics that relate to your situation, you can discover what an array might cost for your home. You can find more accurate peak sun hours with this chart.
Arkansas Solar Cost Factors
The average cost of solar panels in Arkansas includes more than just the physical panels. For an average cost of $15,780, homeowners in the Natural State are covering all equipment, installation, and marketing. However, a few aspects can substantially affect this price.
When looking at panel types, Arkansans can choose between monocrystalline and polycrystalline. While the latter is more affordable in most cases, homeowners should seriously consider going with the former due to the large number of storms in the state. They’ll cost more, but the higher efficiency of monocrystalline panels will drastically reduce the overall array size.
Additionally, homeowners should not breeze over installer companies; while you might feel inclined to pass on installers with high rates, those well below the state average could provide poor services. Arkansans should consider carefully a company that can efficiently install the array and sticks around for its lifetime of about 20-25 years.
As mentioned above, one of the primary metrics for estimating solar costs is peak sun hours. This can have a massive influence on the amount of total wattage required in an array. For example, check out the average cost of surrounding states such as:
Can Solar Energy Save Arkansans Money?
Now that we know how much Arkansans can expect to pay for solar panels, let’s determine if there are savings to consider.
First, we’ll take a look at how long it could take to pay off an array with the electrical payment offset. With homeowners saving about $1,483 a year ($123.60 monthly average), they could cover the cost of a 6kW solar panel system in about 10.6 years. This is a longer time frame than most other states.
How does that translate into net savings for Arkansans? If we consider the average lifespan of a solar panel system of 20-25 years, homeowners can see net returns on the electricity they aren’t buying after paying it off. In Arkansas, this means you could save around $13,940 to $21,360.
Solar Panels in Arkansas: Rebates, Credits, and Incentives
As mentioned earlier, Arkansans that purchase an array can take advantage of a 30% federal tax credit on any residential solar payments. This can reduce the total cost of solar panels in Arkansas by nearly $5,000 or more.
Unfortunately, the Natural State is one of the last in the country to support renewable energy. Despite having a decent amount of peak sun and a relatively affordable equipment cost, homeowners won’t find many incentives to make an installment worth it. For a detailed breakdown of available opportunities in Arkansas, check out our complete incentives list.
Solar Panels in Arkansas: Further Reading
While the cost of solar panels in Arkansas might not feel as influential as in other states, the net savings and environmental benefits still make it a worthwhile decision. For more on the solar industry, check out the articles below.
The 10 Largest Solar Panel Companies in the World, and What They Do – These are the companies behind the arrays you’re putting on top of your house.
Can You Recharge an EV With Solar Power? – Residential solar isn’t the only application for the renewable energy. Here’s how we’re using it to power our cars.
Solar Panels in Arizona: Cost, Savings, and Rebates – Arizona is one of the leading states promoting solar energy.
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