Solar power in Little Rock, Arkansas
Entergy Arkansas offers its Little Rock customers a net metering program.
Little Rock residents can also take advantage of the federal solar tax credit. The tax credit is equal to a lage proportion of the cost of a solar system (26% in 2020, and 22% in 2021) and is applied to your federal income taxes. In some cases, you may be able to wipe out your entire tax bill for the year!
The combination of the federal tax credit and Entergy’s net metering program can provide you with an excellent return on investment on a solar system installation in Arkansas.
Net Metering Broken Down
Entergy will provide credit for any excess generation a customer’s solar system generates. The net metering credits are equal to 1 kilowatt hour of energy that are applied to the customer’s next bill in order to offset future electricity usage.
If the customer has credits in their account that are over 2 years old, they can sell them back to the utility for cash at the avoided cost rate. However, you, as the customer, will end up saving more money by keeping the credits and having them apply to future bills since the credits are worth the retail rate of electricity.
The average cost of installing residential solar panels in Little Rock,
Arkansas in 2024 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Little Rock, AR
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in Arkansas is only 1174kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Little Rock solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our Arkansas solar savings calculator can do this because it contains a database of the electric rates charged by City of North Little Rock, Entergy Arkansas Inc, First Electric Coop Corp
How much can solar panels save you in Little Rock
What does the cost of a real solar system look like?
Facts about installing a 8.38kW solar system in Little Rock, AR
This system would offset 100% of your energy usage if your typical monthly bill is $121, however your situation may vary so try our Little Rock solar calculator to get a result tailored to you.
$16,061
Net cost of system
9 Years 2 Months
Average payback time
11,000 kWh
Annual power production
6¢/kWh
Levelized cost of solar energy
24¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 8.38kW system
Life-time savings on this system over the next 25 years
$41,370
(Prices shown after repayments of capital)
2
Solar companies in Little Rock, AR that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Little Rock
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in Arkansas
Check out all of the ways energy providers of Arkansas can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net Metering |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
