Arkansas residential solar energy incentives


  • Maximum capacity limit for residential systems is 25 kW.

  • Eligible technologies for net-metering include; solar, wind, hydroelectric, biomass and geothermal systems.

  • Customers who net-meter own their own renewable energy credits.

  • The net excess generation of each customer is carried over to the following monthly bill at the utility’s retail rate as a credit.

Utility loan programs

  • In the state of Arkansas, there are a few utility loan programs provided by municipal utility companies. These loans are for energy efficiency home improvements.

  • Here is a list of utilities and their loan programs:

    • First Electric Cooperative – Home improvement loans

    • North Arkansas Electric Cooperative, Inc – Residential energy efficiency loan program

    • Ozarks Electric Cooperative - Residential energy efficiency loan program

    • Petit Jean Electric Cooperative - Energy efficiency loan program

Residential Renewable Energy Tax Credit

  • This personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.

  • Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.

  • The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.

    • This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.

Residential Energy Conservation Subsidy Exclusion

  • This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.

  • The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.

  • Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.

Energy-Efficient Mortgages

  • This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.