Arkansas, blessed with abundant sunshine throughout the year, presents an excellent opportunity for homeowners and property owners to embrace solar energy. By investing in solar panels, you can significantly reduce your energy bills and lessen your dependence on the traditional power grid. Arkansas’s favorable regulations on net metering empower you to offset the cost of electricity consumed from utility companies by earning credits through your own energy production.
Discover how you can save money and cut energy consumption costs with Arkansas solar incentives and rebates.
Arkansas Solar Incentives, Rebates, Tax Credits, and Benefits
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Investment Tax Credit (ITC) is a game-changer for property owners who purchase their solar panel systems outright. This credit currently stands at 26% of your solar system’s cost and can be deducted from your federal income tax. It’s important to note that the federal ITC applies only to those who buy their photovoltaic (PV) system outright (either with a cash purchase or solar loan), not those who lease it. The ITC is undoubtedly the most significant tax solar incentive for Arkansas property owners. In 2023, the tax credits for installations will drop to 22%. This is one of many reasons why it makes sense to go solar without delay.
If you invest in a solar panel system by the end of 2032, the federal tax credit is 30% of the price of your solar panel system. This means 30% off the system’s total cost, including equipment, labor, and permitting.
Sample Calculation: Assuming your solar energy system costs $20,000, you would be eligible for a federal solar tax credit of $6,000, which represents 30% of the system’s cost.
By 2033, the federal tax credit will fall to 26%, and 22% by 2034.
Arkansas Net Metering
Arkansas has a robust and stable net metering law. Net metering allows solar panels or other renewable energy generators to be connected to the public utility grid, and surplus power is transferred into the grid. You save by producing clean energy and effectively sell the excess to the power company as a credit on your power bill. This is accessible in Arkansas for all utility companies and property owners to acquire credits at occupied retail electricity rates for generating more solar electricity than they consume.
Arkansas Solar Incentives
Sunny Arkansas has some laws favorable for solar incentives and renewable power energy. Plus, the Federal solar investment tax credit (ITC) applies and is currently worth 26% of the cost of your system; it gets deducted from your income tax.
Property Assessed Clean Energy (PACE) Financing
The Property Assessed Clean Energy (PACE) financing in Arkansas allows property owners to incorporate the initial costs of energy improvements into their property taxes. While this may not directly reduce the value of your solar incentives, it does offer you additional time to pay off your solar system. This way, the property owner can utilize a portion of the savings from their electricity bills to compensate for the system’s cost.
Embrace the Sun’s Potential
It would be beneficial and economical to consult with a reliable solar company to assess your solar needs. Feel free to explore all the Arkansas solar incentives and rebates available and take full advantage of them. Go solar today and start saving on your energy costs while contributing to a sustainable future!
