Check out our guide to the best solar companies in Arkansas and compare each provider based on solar services, cost, warranties and financing options.
The Best Solar Companies in Arkansas (2024)
with our comparison partner, HomeService Quotes
Updated:
May 8, 2024
Written by
Aniket Bhor
Aniket Bhor
Edited by
Tori Addison
Tori Addison
Thanks to living in a state with above-average sunshine and below-average solar pricing, Arkansas homeowners can take advantage of the benefits of going solar. The MarketWatch Guides team’s picks for the best solar companies in Arkansas include Shine Solar, SunPower and Blue Raven Solar because of available financing options, strong warranties and competitive pricing.
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Compare Our Recommended Installers
The average cost of a solar power system in Arkansas is $2.67 per watt, putting the cost of an 8 kilowatt (kW) system at $21,360. Compared to the national average of $2.85 per watt, Arkansas has slightly lower-than-average solar pricing. Below is a table that shows pricing information for our picks for the top installers in Arkansas.
| Company | Star Rating | Cost Per Watt (8 kW) | System Price Range (8 kW) | BBB Rating | Visit Site |
|---|---|---|---|---|---|
| Varies | N/A | A+ | |||
| $3–$4.50 | $24,000–$36,000 | A+ | |||
| $2.50–$2.81 | $20,000–$22,500 | A | |||
| $2–$2.5 | $15,000–$20,000 | N/A |
| Company | BBB Rating | Star Rating | Cost Per Watt (8 kW) | System Price Range (8 kW) | Visit Site |
|---|---|---|---|---|---|
| A+ | Varies | N/A | |||
| A+ | $3–$4.50 | $24,000–$36,000 | |||
| A | $2.50–$2.81 | $20,000–$22,500 | |||
| N/A | $2–$2.5 | $15,000–$20,000 |
Pricing is based on responses to two surveys we conducted in 2023 of 2,000 total homeowners with 8 kW solar systems and information obtained from SunPower. Since AEV Solar is a local installer, we sourced pricing information from its website. Your cost may vary.
Top 4 Solar Companies in Arkansas of 2024
Based on our detailed market analysis and consumer surveys, we picked the following companies as the best solar installers in Arkansas.
- Shine Solar: Our pick for warranties
- SunPower: Most Experienced
- Blue Raven: Our pick for financing
- AEV Solar: Our pick for affordable pricing
Shine Solar
Our pick for warranties
Warranty 25 years
System Cost N/A
SunPower
Our pick for most experience
Warranty 25 years
System Cost $24,000–$36,000
Blue Raven Solar
Our pick for financing
Warranty 10 and 25 years
System Cost $20,000–$22,500
AEV Solar
Our pick for affordable pricing
Warranty 25 years
System Cost $15,000–$20,000
What To Look For in a Solar Company
With just under 40 solar companies in operation, Arkansas has fewer options for installers than other states. However, deciding on the right solar company can still feel daunting for residents. Here are some factors to consider when choosing an installer that suits your needs:
Arkansas homeowners pay a lower-than-average electricity rate of 12.71 cents per kilowatt-hour (kWh). Despite the relatively low cost of solar in the state, solar panels have longer payback periods since electricity savings are not as high as in some other areas. In short, the more you save on power bills, the more money to offset the cost of your system. This is why it is typically important to compare prices and choose an installer offering a competitively priced system.
High-quality solar panels can last 25 to 30 years. Because the payback period in Arkansas is longer than average, we recommend that residents consider high-quality systems to save more on power bills over time. Plus, choosing an installer with leading warranty coverage will ensure your system is protected for a decade or more.
When exploring solar companies, checking the company’s reputation and customer experiences may help determine if it is trustworthy. Not every solar company is reliable, and some may use predatory sales practices on unsuspecting homeowners. The Arkansas Attorney General recently published an enforcement advisory to all Arkansas solar companies urging representatives to avoid high-pressure and misleading sales practices and sued two installers.
Benefits of Going Solar in Arkansas
There are multiple benefits of installing a solar system in Arkansas, including:
- Energy bill savings: Arkansas does not have the highest electricity costs in the country, but many residents still spend thousands each year on power bills. Over two to three decades, the costs can add up to tens of thousands of dollars. Solar panels can eliminate most of a home’s electric bills, saving significant amounts of money over a system’s two to three-decade lifespan.
- Protection against rising power costs: Because of inflation, fluctuating costs of raw materials and the need for new infrastructure, the electricity of power is always rising. In Arkansas, for example, utilities such as Black Hills Energy, Arkansas Valley Electric and First Electric Cooperative hiked rates within two months. Over 25 to 30 years, multiple rate hikes can mean a substantial increase in energy spending. By reducing or eliminating grid power consumption, solar panels can protect homeowners from the impact of climbing electrical rates.
- Security against power outages: Power outages happen, especially in areas that see weather hazards and extremes. Arkansas is no exception. In January 2024, more than 20,000 families in Northwest Arkansas and River Valley were left without power after winter storms hit the regions. Arkansans can keep their home’s essential appliances running through a blackout by installing a solar system with a battery system.
- Reduced carbon emissions: Although renewables have seen rapid growth in Arkansas, the state still uses hundreds of times more coal than all renewable sources combined. Consistent use of fossil fuels is leading to a warming planet and increased extreme weather events. As more Arkansas homeowners install solar panels, the state’s reliance on fossil fuels will decline, reducing the state’s carbon emissions.
- Increased home value: Thanks to an array of benefits offered by solar power systems, more new home buyers prefer solar-powered homes over homes without panels. A study by Zillow found that nationwide, the average increase in the cost of a home after installing solar panels was a notable 4.1%. Considering Arkansas’ average home price of $196,406, solar power can offer an average increase in value of about $8,000.
Common Concerns
One concern we found regarding the solar market in Arkansas is the state’s lack of solar incentives compared to other states. Except for net metering and a loan program, Arkansas has no major solar incentives or rebates. Without incentives, the cost of solar systems is higher in Arkansas than in other states. However, residents can still claim the 30% federal solar tax credit.
Another issue is the low electricity pricing in Arkansas. The state’s average electricity rate is about 20% lower than the national average, resulting in lower savings from solar energy and a potentially longer payback period.
Solar Trends in Arkansas
Arkansas is not considered a solar energy leader but has the potential to become one. It is the 12th-sunniest state in America. Also, a study by the National Renewable Energy Laboratory (NREL) shows that 33.3% of Arkansas rooftops are suited for solar panel installations. Combined, those homes could generate 12.2 gigawatts (GW) of solar power — more than 17 times the state’s current installed capacity.
According to the Solar Energy Industries Association (SEIA), Arkansas’ solar rank will move from No. 30 to No. 13 over the next five years as momentum for adopting renewable energy in the state grows.
However, Arkansas has a strong net metering program, with which solar customers enjoy a one-to-one retail credit for excess power generation. In May 2022, the Arkansas Court of Appeals ruled in favor of retaining the current net metering structure and denied the energy company Entergy’s request for a reduced rate.
Arkansas Solar Incentives
The solar incentive program in Arkansas is one of the weakest among U.S. states, based on our research. The state offers no notable incentives or rebates. However, solar panel buyers can benefit from the federal tax credit and a net metering program.
Federal Incentives
The most beneficial solar incentive available to Arkansas residents is the federal solar tax credit. Although not a direct rebate, the incentive saves homeowners money through an income tax deduction. Homeowners who install a solar panel system can claim a tax credit equal to 30% of their system’s purchase cost. For an average system cost of $21,360, Arkansas solar customers will save about $6,408.
Statewide Incentives
In addition to the federal tax credit, there are three state-level solar incentives available to Arkansas residents.
| Incentive | Savings | Explanation |
| Rural Energy for America Program (REAP) | $2,500–$1 million in grant funding | Agricultural producers and small rural businesses can apply for loan financing and grant funding for renewable energy projects. |
| Property Assessed Clean Energy (PACE) | No direct savings | Property owners can borrow money for solar panel installations or other energy efficiency upgrades. You pay back the borrowed amount through additional property taxes. |
| Net metering | Savings will vary | Homeowners with grid-interconnected solar systems can send excess solar energy into the grid in exchange for billing credits. The program currently values energy credits at about 10 cents per kWh. |
Frequently Asked Questions About Solar Companies in Arkansas
Solar power may be worth the cost in Arkansas if you are looking to lower power bills. The state is one of the sunniest in the country, allowing many homeowners to generate large amounts of energy which can reduce their monthly power bills. A solar system also lets families manage power outages and utility rate hikes. However, the state has lower-than-average electricity prices, so homeowners should carefully consider long-term savings versus the upfront cost of a system.
Arkansas homeowners can expect to pay an average of about $2.67 per watt or $21,360 for an 8 kW solar system. However, that price drops after applying the federal tax credit and net-metering gains.
Arkansas does not have a direct solar rebate. However, Arkansas residents can benefit from incentivized loan programs and the federal solar tax credit, which can save up to 30% on a solar system’s cost.
Because of the high price tags, Arkansas or any other state does not offer free solar panels. However, some solar companies may promise free solar panels when marketing solar leases. While leases typically offer $0 upfront, you will never own the system and still have to pay to use it monthly.
Methodology: Our System for Ranking the Best Solar Companies
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