Are Solar Panels Worth It in Arkansas? Data-Backed Analysis
✗
No
Solar may not be the best investment in Arkansas at current costs.
The Numbers
Average System Cost
$43,125
6.9 kW system
Federal Residential Credit (2026)
$0
No new credit after Dec. 31, 2025
Observed Records
117
88% residential
Factors in Favor
- ✓88% residential - strong homeowner adoption
Things to Consider
- !Above-average installation cost ($6.25/W vs national $4.18/W)
- !Relatively few installations (117) - market is still developing
Arkansas vs National Average
| Metric | Arkansas | National |
|---|---|---|
| Cost per Watt | $6.25 | $4.18 |
| Total Installations | 117 | 3,426,466 |
| Total Capacity | 1 MW | - |
Frequently Asked Questions
The observed average implies a system cost of approximately $43,125 (avg 6.9 kW system at $6.25/W). This is a historical dataset estimate, not a current installer quote.
New residential systems placed in service in 2026 do not qualify for the federal Residential Clean Energy Credit under current IRS guidance. State, local and utility programs may still apply; verify current eligibility with each program administrator.
Arkansas has 117 solar installations. Current costs and conditions may make solar less attractive, but incentives and declining costs continue to improve the outlook.
Source: LBNL Tracking the Sun, U.S. Department of Energy, EIA. Costs and savings are modeled from historical averages and may vary. New 2026 residential installations receive no federal Residential Clean Energy Credit under current IRS guidance.