Solar Panel Cost in Arkansas (2026): Price, Payback, Incentives

Q: How much do solar panels cost in Arkansas?

At the state median installed price of $3.60 per watt (estimate), a 9.2 kW (estimate) system that covers a typical home's use costs about $33,100 (estimate) before incentives. Quotes vary with roof, equipment and installer.

Solar Panel Cost in Arkansas

A typical Arkansas home uses 1,048 kWh a month^[1] of electricity. Covering that with solar takes a system of about 9.2 kW est.^[1,2], which costs roughly $28,000 to $38,000 est.^[1,2,3] before incentives at the state's median installed price. With Arkansas's average residential price of 13.74¢ per kWh^[4], our model puts payback at more than 25 years est.^[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

Arkansas solar at a glance

Average electricity price13.74¢/kWh^[4]Jan–Aug 2026 average (preliminary)

Average home use1,048 kWh/mo^[1]2024 average

Solar output per kW1,373 kWh/yr^[2]PVWatts estimate for Little Rock

Median installed price$3.60/W^[3]Estimate, before incentives

Typical system9.2 kWSized to cover 100% of use

Typical price$33,100Estimate, before incentives

Year-1 savings$1,080Estimate

Payback>25 yrsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Entergy Arkansas credits exports from new solar customers at about 3.34¢ per kWh; we use it for Arkansas. Other utilities differ. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Arkansas by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Arkansas.

Estimated cost, output and payback by system size in Arkansas
System	Price before incentives^[3]	After incentives	kWh in year 1^[2]	Year-1 savings^[4]^[5]	Payback (years)
4 kW	$14,400	$14,400	5,490	$470	>25
6 kW	$21,600	$21,600	8,240	$700	>25
8 kW	$28,800	$28,800	10,980	$940	>25
10 kW	$36,000	$36,000	13,730	$1,170	>25
12 kW	$43,200	$43,200	16,480	$1,410	>25

Incentives that lower the price in Arkansas

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who: Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline: December 31, 2027
Checked: November 5, 2026

All Arkansas incentives, including utility and local programs →

How Arkansas utilities credit your solar

For Entergy Arkansas systems interconnected after September 30, 2024, energy drawn from the grid is billed at normal rates and every kWh sent to the grid is credited as a dollar bill credit at the utility's avoided cost (about 3.3 cents/kWh in 2026), set yearly. Systems installed earlier keep legacy 1:1 kWh crediting until June 1, 2040.^[5]

We have not added every Arkansas utility yet, so the estimates on this page use the state-level rule: Entergy Arkansas credits exports from new solar customers at about 3.34¢ per kWh; we use it for Arkansas. Other utilities differ.^[5]

Full Arkansas net metering and export-credit rules →

Next steps

Run the solar calculator with Arkansas defaults and your own bill.
Arkansas solar incentives
Arkansas net metering and export credits
How to vet installers in Arkansas
Spot solar sales red flags and compare financing before you sign.

Frequently asked questions

How much do solar panels cost in Arkansas?

At the state median installed price of $3.60 per watt est.^[3], a 9.2 kW est.^[1,2] system that covers a typical home's use costs about $33,100 est.^[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Arkansas?

For a cash purchase at the state's average electricity price of 13.74¢ per kWh^[4], our model estimates more than 25 years est.^[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)^[7] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

Change log

Nov 5, 2026Monthly output per kW in Little Rock updated to [87.1, 94.1, 106.9, 121.9, 136.8, 141.7, 139.0, 136.2, 126.8, 108.5, 97.6, 76.6] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026Average solar radiation on the panels in Little Rock updated to 5.18 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026Solar output per kW in Arkansas (PVWatts, Little Rock) updated to 1373.4 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).

Nov 5, 2026What the rule says updated to “Avoided Cost of the Company to all kWhs supplied to the Company by a Net-Metering Customer during the applicable billing period to be credited to the total bill” (Entergy Arkansas Rate Schedule No. 71, Non-Legacy Net-Metering Service (NLN-M)).