Homeowner Rebates, Tax Benefits, Net Metering & SRECs for Arkansas Homeowners
Arkansas homeowners are increasingly considering solar as utility rates rise, severe weather and grid outages become more frequent, and long-term energy cost predictability becomes a priority.
Arkansas sees hot summers where air conditioning drives peak electricity use and winter cold snaps that can strain infrastructure, making reliable on-site generation and resiliency planning appealing for many households.
The average residential electricity rate in Arkansas is approximately 13–14¢ per kWh, placing the state near the national average. While this rate is not among the highest nationally, the high seasonal variability — with summer air conditioning use and winter heating demand — can result in unusually high electricity bills for homeowners with electric HVAC systems.
Although federal solar incentives are not available to homeowners in 2026, Arkansas still offers state tax exemptions, net metering through major utilities, and local utility programs that support residential solar adoption when systems are designed appropriately.
Here's what homeowners need to know about Arkansas solar incentives in 2026.
Types of Arkansas Solar Incentives for Homeowners
Property tax exemption: Solar systems are excluded from local property tax assessments
Sales tax treatment: Solar equipment generally exempt from state sales tax
State energy goals: Distributed generation encouraged under clean energy policy
Arkansas generally excludes the added value of residential solar systems from property tax assessments, allowing homeowners to install solar without increasing annual property taxes. Solar equipment is also exempt from the state sales tax, reducing upfront costs at the point of purchase. While Arkansas does not offer broad statewide cash rebates, these tax treatments help lower both immediate and long-term costs of solar ownership.
Utility-Specific Solar Incentives in Arkansas
Investor-owned utilities: Entergy Arkansas and SWEPCO (AEP) offer interconnection and net metering
Municipal utilities: Local providers support net metering under state rules
Electric cooperatives: Policies vary widely by co-op
Entergy Arkansas Residential Solar Programs
Entergy Arkansas provides residential solar interconnection under state net metering requirements. Homeowners can export excess solar generation to the grid and receive bill credits, with system size and interconnection requirements outlined in Entergy’s tariff. While export credits may not fully offset retail charges in some circumstances, solar remains effective when systems are sized to maximize on-site use, particularly during peak cooling hours.
SWEPCO (American Electric Power) Solar Programs
American Electric Power operates SWEPCO in western Arkansas and offers net metering for qualifying residential solar systems. SWEPCO customers can interconnect systems that meet utility standards and receive credits for exported energy. Homeowners should review local tariff details, as credit valuation and rollover policies can differ from Entergy’s.
Municipal Utilities and Cooperatives
Many homeowners in Arkansas are served by municipal utilities or electric cooperatives rather than large investor-owned utilities. These providers typically administer net metering or net billing arrangements under state rules.
Cooperatives such as Arkansas Electric Cooperative Corporation (AECC) and local utilities like Murphy Electric or Ozarks Electric may have unique policies on credits and interconnection; homeowners should contact their provider directly for specifics.
Net Metering for Residential Solar in Arkansas
Supported by: Entergy Arkansas, SWEPCO, municipal utilities, many cooperatives
Credit method: Bill credits for exported solar generation
Rollover: Credits typically roll forward monthly
System limits: Systems are usually sized to match household needs
Arkansas requires qualifying utilities to offer net metering for residential solar customers. Excess electricity generated by a homeowner’s system earns credits that offset future energy use. Credits usually roll forward month to month and are reconciled annually, although specific terms can vary by utility. Because export credits may not fully reflect retail rates, systems are most effective when oriented toward on-site consumption — especially during peak summer cooling loads.
Why Use Energy Storage in Arkansas
Outage resilience: Batteries provide backup during summer storms and winter grid stress
Peak cooling demand: Storage offsets high afternoon and evening AC use
Self-consumption optimization: Captures daytime production for later use
Rate protection: Helps manage evolving tariff structures
Energy storage enhances residential solar by smoothing demand peaks and providing backup power during grid interruptions caused by severe weather. Batteries allow homeowners to store excess solar generation, capturing energy during peak UV hours and discharging it in the evening when air conditioning demand remains high but solar output has dropped. This improves self-consumption and reduces reliance on grid power, especially under rate structures with time-of-use or demand components. Storage also offers short-duration backup for critical loads like refrigeration, lighting, and communications during outages.
SREC and Production-Based Incentives in Arkansas
Statewide SREC market: Not available
Primary value drivers: Net metering credits, tax exemptions
Utility pilots: Local performance incentives possible in rare cases
Arkansas does not operate a statewide Solar Renewable Energy Credit (SREC) market. Residential solar value is realized primarily through reduced electricity purchases via net metering bill credits and tax incentives rather than certificate trading. In limited cases, some utilities or local programs may offer production-based rewards or pilot incentives for solar plus storage participation, but these are not statewide programs.
Need Help Navigating Incentives? Reach Out to US Solar Supplier
Arkansas homeowners can benefit from property and sales tax exemptions, utility net metering, and storage integration to make residential solar a long-term investment. Success depends on right-sizing systems for seasonal loads, and selecting battery and panel systems that match homeowner usage patterns.
US Solar Supplier helps Arkansas homeowners with materials selection, residential system design, storage planning, and utility compliance. Whether you’re offsetting peak summer cooling loads, improving outage resilience, or planning hybrid grid/storage configurations, our team can help design an incentive-ready system tailored to Arkansas conditions.
Contact US Solar Supplier for personalized guidance on solar equipment, design services, and homeowner-focused solar planning in Arkansas.
