Arkansas residential solar energy incentives

Net-Metering

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.