Arkansas Solar Incentives, Cost & Policy (2026)
Written by Aditya Patil · Last updated 2026-09-24
Arkansas changed its solar policy landscape significantly in late 2024. New solar installations are no longer eligible for 1:1 retail net metering, which shifts the financial calculus and makes strategies like storing energy in batteries for self-consumption more beneficial.
$154
Avg. monthly bill
14.12¢/kWh
Avg. rate
3.34¢/kWh
Entergy avoided cost
2026-27 export credit
1392 kWh
Est. generation
per kW per year
Cost of solar in Arkansas
Robust, state-specific installed cost data from the LBNL Tracking the Sun report is not currently available for Arkansas. However, residents consume an average of 1087.1 kWh per month. To offset a typical household's annual usage of 13,045 kWh, you would need roughly a 9.37 kW solar system in Arkansas, given the region's strong solar production of 1392 kWh per kW annually.
Solar only, no battery
~40% self-consumption — credits for excess grid exports are low under the new rules
$998 / yr savings
$34,031 saved over 25 years
Solar + battery
~65% self-consumption — a battery shifts solar power to evening hours
$1,350 / yr savings
$46,016 saved over 25 years
Estimated savings based on an average retail rate of 14.12¢/kWh and Entergy's 3.34¢/kWh export rate. Battery installation costs will add to your total upfront system price.
Net billing / export rules
Arkansas no longer offers full 1:1 net metering for new installations. Following rules established by the Arkansas Public Service Commission, customers submitting interconnection applications on or after September 30, 2024 are placed on a net billing structure.
Under this new framework, the electricity you pull from the grid is billed at retail rates, but the surplus solar power you push to the grid is credited at the utility's lower "avoided-cost" rate. For instance, Entergy Arkansas values excess generation at 3.34¢/kWh for the March 2026 to February 2027 period. Electric cooperatives and municipal utilities dictate their own avoided-cost figures.
Customers who filed their net-metering interconnection prior to the September 30, 2024 deadline retain "legacy" status. These grandfathered accounts will continue to receive full retail-rate credits for their solar exports through June 1, 2040.
| Policy | Net Billing (avoided-cost) |
| Effective for new applications | September 30, 2024 |
| Export valued by | Utility's avoided-cost rate (e.g., 3.34¢/kWh for Entergy) |
| Grandfathering | Legacy customers keep 1:1 retail credit through June 2040 |
| System size cap | 25 kW AC or 100% of highest monthly usage |
New (non-legacy) customers are credited at the interconnecting utility's avoided-cost rate, which is recalculated every year from the prior calendar year's average wholesale (MISO or SPP) locational marginal price. Entergy Arkansas's APSC-approved avoided-cost rate is $0.0334/kWh for March 2026-February 2027, up from $0.0247/kWh in 2025-26 and $0.0259/kWh in 2024-25. Legacy and legacy-transitional customers (interconnection application filed before September 30, 2024) keep full retail-rate credit for excess generation through June 1, 2040. Electric cooperatives and municipal utilities set their own avoided-cost figures, which can differ from Entergy's.
Incentives & programs
Arkansas lacks broad statewide rebates or tax credits for residential solar, making the federal solar tax credit the primary incentive available. Entergy does offer an alternative community-solar-style option.
| Program | Amount / Benefit | Status |
|---|---|---|
| Entergy Arkansas Solar Energy Purchase Option (SEPO) | Subscribers pay a fixed Solar Energy Rate of $0.05345/kWh for their subscribed share of the 81 MW Stuttgart Solar facility and get a monthly bill credit or charge equal to (Solar Energy kWh) x (Solar Energy Rate minus the MISO Settlement Rate for that month), so the value depends on wholesale power prices. | waitlist |
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Entergy Arkansas LLC | 12.97¢/kWh | 608,362 |
| Southwestern Electric Power Co | 11.53¢/kWh | 108,102 |
| Carroll Electric Coop Corp - (AR) | 12.25¢/kWh | 101,154 |
FAQ
Does Arkansas have 1:1 net metering?
No, not for new solar installations. As of September 30, 2024, new solar applications fall under a net billing policy. This means energy exported to the grid is credited at the utility's lower avoided-cost rate (such as 3.34¢/kWh for Entergy Arkansas). Existing systems installed prior to the deadline retain their 1:1 full retail net metering until June 1, 2040.
What is the Entergy Arkansas Solar Energy Purchase Option (SEPO)?
It is a community solar program where Entergy customers can subscribe to shares of the Stuttgart Solar facility. Subscribers lock in a fixed Solar Energy Rate and get a bill credit tied to wholesale market prices. The program is currently waitlisted and capped at 40.5 MW.
Are there state tax credits for going solar in Arkansas?
Arkansas does not currently offer state-level tax credits or rebates for residential solar installations. Homeowners generally rely on the federal residential clean energy credit and long-term energy bill savings.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil