Arkansas Solar After the 2024 Cutoff: Exports Earn 3.34¢

A typical Arkansas system is 8.16 kW and costs about $20,890 cash at $2.56 per watt. A new Entergy Arkansas system pays back in about 35.3 years in our case, because power sent to the grid earns 3.34¢. At full price per kWh, as older systems get, it would take 16.3 years.

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A new Entergy Arkansas system at 3.34¢: the 35.3-year case

Since the cutoff, each kWh from new panels is worth one of two very different amounts. Our cases assume 40% is used at home as it is made and 60% goes to the grid.

Power you use as it is made about 13.43¢

  1. Your home uses it the moment the panels make it.
  2. It never reaches the meter, so you simply buy less.
  3. It saves your full price: 13.43¢ is the state average.

Power you send to the grid 3.34¢

  1. Entergy Arkansas counts it on a separate meter channel.
  2. Each kWh earns the avoided cost: 3.34¢ from March 2026 to February 2027.
  3. The credit is in dollars and carries to your next bill.
Typical 8.16 kW system, $20,890 cash
Case and export creditYear-one savingsAfter upkeepSimple payback
New Entergy Arkansas system, 3.34¢ (Rate Schedule No. 71)$837$59235.3 years
Comparison: every kWh at the 13.43¢ state average, closed to new systems$1,524$1,28016.3 years

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The gap of about 19 years is what the cutoff changed for a new system. A new system closes part of it only by using more of its own power as it is made.

How we calculated this
  • Output: 8.16 kW × 1,391 kWh per kW = 11,351 kWh a year.
  • Savings: 4,540 kWh used at home × 13.43¢, plus 6,811 kWh sent out × the credit. That is $837 at 3.34¢, and $1,524 if every kWh were worth 13.43¢.
  • Upkeep: $30 per kW a year, $244.80, including an inverter reserve.
  • Payback: $20,890 ÷ (savings − upkeep). No financing, rate changes or panel aging.
  • 13.43¢ is the EIA state average for the 12 months to July 2026. It includes fixed charges, so it can run high. Entergy Arkansas homes paid about 13¢ on average in 2024.
  • The comparison case is an upper bound for one-for-one credits, which only systems filed before September 30, 2024 keep. We did not model co-ops, SWEPCO, OG&E or city utilities.

Filed before or after September 30, 2024: Arkansas’s two net metering deals

Act 278 of 2023 changed the rules for new systems. The date the interconnection agreement went in decides which deal a system is on, and that deal stays with the system at its address.

Legacy and new-rules systems, side by side
What changesFiled before September 30, 2024Filed later
Power you send outEach kWh cancels one you buy, at full priceA dollar credit at avoided cost: 3.34¢ at Entergy Arkansas
Unused creditRolls forward. Credits older than 24 months can be sold to the utility at avoided cost, if the payment is at least $100Carries to the next bill. Paid out at avoided cost when you close the account
How long it lastsUntil June 1, 2040The credit is reset every March
If you sell the homeThe agreement can be transferred to the buyerThe buyer stays on the new rules

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Buying an Arkansas home that already has panels
  • Ask the seller for the interconnection agreement. Its date tells you which rules the system carries. Your utility can confirm it. First Electric Co-op, for example, has a transfer form for home buyers.
  • Do not move the system. A system taken to another address loses legacy status.
  • Ask before you add panels. Normal repairs and replacement parts keep legacy status. A real increase in capacity can put the system on the new rules.
  • New systems cannot get legacy terms. Applying now does not reopen the old deal, whatever a sales pitch says.

Entergy Arkansas resets its solar credit every March

Each utility that credits at avoided cost files a new figure by February 1. It takes effect in March for 12 months, so the savings in any quote rest on a number that moves.

2.59¢March 2024 to February 2025

The earliest figure in Entergy Arkansas’s rate table.

2.47¢March 2025 to February 2026

Down from the year before.

3.34¢March 2026 to February 2027

Effective March 2, 2026, under Order No. 8 in Docket 23-070-TF.

March 2027Next reset

Filed by February 1, 2027, from the prior year’s wholesale prices.

So far the figure has fallen once and risen once. Ask any installer to show your savings at last year’s 2.47¢ as well as this year’s 3.34¢.

Entergy Arkansas, a co-op, SWEPCO, OG&E or your city: who credits Arkansas solar

The name at the top of your electric bill is your utility. It sets the credit for power you send out and the one-time connection fee.

Entergy Arkansas

3.34¢ per kWh sent out

Serves about 4 in 10 Arkansas homes. One-time fee of $196.75 when you submit the agreement, plus any study or grid work your connection needs.

Next: ask for savings priced at 3.34¢ and at 2.47¢.

First Electric, Ozarks and other co-ops

Avoided cost

Co-ops serve about 1 in 3 homes. They use the avoided cost filed by Arkansas Electric Cooperative Corporation, their power supplier, and the ones we read post no figure.

Next: get this year’s figure and the month it changes in writing.

SWEPCO, OG&E or a city utility

Its own terms

City utilities serve about 1 in 8 homes, and SWEPCO and OG&E most of the rest. Each sets or files its own terms. A city utility may set a lower size limit.

Next: do not accept the Entergy Arkansas figure in a quote here.

What a new Arkansas home system gets for power sent out
UtilityCredit per kWhOne-time feeAlso know
Entergy Arkansas3.34¢$196.75Plus any study or grid work
First Electric Co-opAvoided cost, not posted$320Lowest monthly bill with solar $31 plus taxes
Ozarks Electric Co-opAvoided cost, not postedNot postedCredits roll over, never expire, and apply to the energy part of the bill
SWEPCO and OG&ENot confirmedAskEach files its own terms with the state
City utilitiesSet by the cityAskNorth Little Rock, Conway and Bentonville, for example

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Rules every Arkansas home system shares
  • Size: up to 25 kW, and no larger than what covers 100% of your highest monthly use in the past 12 months.
  • Timing: the signed Standard Interconnection Agreement reaches the utility at least 30 days before the system connects.
  • Meter: a new system gets a meter with two channels, one for power you buy and one for power you send out.
  • Limits: the credit cannot pay the customer charge, the fixed monthly fee for being connected, or any minimum bill.
  • The rules come from the Arkansas Public Service Commission and cover Entergy Arkansas, SWEPCO, OG&E and the co-ops.

Arkansas solar at $2.56 per watt, tied third lowest of 51

The September 2026 benchmark, $0.33 below the US average. These are modeled cash prices, not quotes we collected.

Cash price and yearly output by system size
Size (kW DC)Cash pricePower made a year
5 kW$12,8006,955 kWh
8 kW$20,48011,128 kWh
8.16 kW (typical)$20,89011,351 kWh
10 kW$25,60013,910 kWh
How we got these numbers
  • 8.16 kW is modeled from neighboring states, because too few Arkansas homes installed solar to measure a local median. Size yours to the power you use in daylight.
  • Output uses the Cost Index figure of 1,391 kWh per kW a year. Shade lowers it.
  • Price is $2.56 per watt times the size. Batteries, roof work and panel upgrades are not included.
  • A system you own gets no federal tax credit after December 31, 2025.

No Arkansas rebate or solar tax credit, and one co-op battery loan

Nothing lowers the price of panels in Arkansas today. The bill credit is the one money item, and one co-op lends cheaply for batteries.

$0State tax credit

The state’s 2025 list of income tax credits, Form AR1000TC, has none for home solar.

$0Rebate

We found no state or utility rebate for home panels or batteries.

$0Federal tax credit

Not for a system you own placed in service after December 31, 2025.

1%North Arkansas Electric loan

For members’ batteries, not panels. From $1,000, repaid over up to 10 years.

Ways to pay for solar in Arkansas
Way to pay
Who owns the panels
Arkansas rule to check
Cash
You
No rebate or credit lowers the price; check sales tax is included
Loan
You
Compare the financed total with cash; the 1% co-op loan covers batteries only
Lease
The company
Gets the same bill credit; the utility asks for a signed lease form

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The North Arkansas Electric loan, line by line
  • 1% interest, the rate posted since January 1, 2023; the co-op says it can change.
  • Eligible items include energy-storage devices, which means home batteries. Solar panels are not on the list.
  • Loans start at $1,000. Amounts above $20,000 need board approval. Repay monthly over up to 10 years.
  • You must have been a member for at least six months. The co-op files a lien on the equipment and charges $50 for it.

Which Arkansas homes the new rules still favor

  • Daytime usePower used while the sun is up saves about 13.43¢. Power sent out earns 3.34¢ at Entergy Arkansas.
  • A home with older panelsA system filed before September 30, 2024 keeps one-for-one credits until 2040, and they can pass to a buyer.
  • A batteryIt keeps your own solar power for the evening instead of sending it out at the low credit. No utility pays you for one.
  • Time in the homeOur new Entergy Arkansas case takes 35.3 years. Compare your planned stay with your own quote’s payback.

Arkansas solar installers based in Little Rock, North Little Rock and Rogers

Three Arkansas companies, A to Z, not ranked. Facts from their own sites, read October 13 and 14, 2026. None prints an Arkansas license number, so ask each for it.

Delta Solar

Office
Little Rock, AR
Arkansas license
Says it is licensed; no number published
Warranty
No terms published
More facts
Focus
Commercial, farm and home systems
Ways to pay
No home plans listed; ask
Delta Solar profile

Seal Solar

Office
North Little Rock, AR
Arkansas license
Not published; ask for it
Warranty
1-year workmanship; 30 years advertised on its battery package
More facts
Battery package
Tesla Powerwall 3, for homes within an hour’s drive of its office
Ways to pay
Cash, or a loan over 5 to 25 years
Seal Solar profile

Stitt Solar

Office
Rogers, AR
Arkansas license
Not published; ask for it
Warranty
5-year workmanship
More facts
Batteries
Maker warranties of 10 to 15 years, by brand (company says)
Ways to pay
Purchase, or a loan; lender not named
Stitt Solar profile

Service visits after the warranty can cost extra: Stitt Solar says on-site visits carry a fee. Ask every installer what a repair visit costs.

Six lines an Arkansas solar quote needs after the cutoff

  • Which rules it assumesA new system is on the new rules. A quote that credits power sent out at full price is using the closed legacy deal.
  • Your utility and its creditEntergy Arkansas, your co-op or your city by name, the cents per kWh for power sent out, and the months it covers.
  • A lower-credit versionThe same design at last year’s 2.47¢, since the figure is reset every March.
  • Size against your usekW and year-one kWh, within 25 kW and your highest month of use.
  • No tax credit subtractedArkansas has none, and the federal homeowner credit ended after December 31, 2025.
  • Fees and sales taxThe connection fee, $196.75 at Entergy Arkansas, and whether the 6.5% state sales tax plus local tax is included.

Comparing Arkansas quotes?

Ask each installer which March credit its savings use, and what the numbers become at 2.47¢.

Check what solar earns at your Arkansas home

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Arkansas Solar FAQs

Did Arkansas end net metering?

For new systems, the one-for-one kind ended. Act 278 of 2023 moved anyone whose paperwork went in after the September 30, 2024 cutoff onto a new deal: you pay the normal price for power you take from the grid, and power you send out earns the utility’s avoided cost. Older systems keep one-for-one terms until June 1, 2040.

How much does Entergy Arkansas pay for solar power?

For power a new system sends to the grid, Entergy Arkansas credits 3.34¢ per kWh in billing months March 2026 through February 2027. That is $33.40 for 1,000 kWh. It is a bill credit, and the figure is reset each March.

Do Arkansas co-ops credit the same as Entergy?

No. Co-ops use an avoided cost figure filed by Arkansas Electric Cooperative Corporation, their power supplier. First Electric and Ozarks Electric do not post the number on their websites. Fees differ too: First Electric charges $320, Entergy Arkansas $196.75.

What if I buy an Arkansas house that already has solar?

Ask for the interconnection agreement and its date. If it was submitted before September 30, 2024, the system keeps one-for-one credits until June 1, 2040, and that status can pass to you with the home. Moving the panels, or adding a lot of capacity, can end those terms.

Does Arkansas have a solar tax credit?

No. The state’s schedule of income tax credits for 2025, Form AR1000TC, has none for home solar. The federal credit is gone too, for any system you own placed in service after December 31, 2025.

How big can an Arkansas home solar system be?

Up to 25 kW, and no larger than what covers 100% of your highest monthly use in the past 12 months. A city utility may set a lower limit.

The Arkansas rules and rate sheets behind this guide

Sources (19 documents, each with the date we read it)
  1. EcoGen Solar Cost Index, September 2026: Arkansas$2.56 per watt, 8.16 kW modeled size, 1,391 kWh per kW, 13.43¢ statewide average (EIA), tied 3rd lowest of 51.
  2. Entergy Arkansas: Rate Schedule No. 71, Non-Legacy Net-Metering Service, Attachment A3.34¢ for March 2026 to February 2027 (Order No. 8, effective March 2, 2026), 2.47¢ and 2.59¢ before, $196.75 fee. Read September 30, 2026.
  3. Entergy Arkansas: Net metering25 kW limit, agreement 30 days before connection. Read September 30, 2026.
  4. Arkansas Public Service Commission: Net-Metering Rules, 23 CAR Part 457September 30, 2024 cutoff, legacy terms to June 1, 2040, 24-month buyback, February 1 filing. Read September 30, 2026.
  5. First Electric Cooperative: Net Metering Service$320 fee, 100% of highest monthly use. Read September 30, 2026.
  6. First Electric Cooperative: Facts About Solar$31 minimum monthly bill plus taxes. Read September 30, 2026.
  7. Ozarks Electric Cooperative: Net MeteringCredits roll over and do not expire. Read September 30, 2026.
  8. North Arkansas Electric Cooperative: Energy Efficiency Loans1% rate since January 1, 2023, batteries eligible, panels not. Read September 30, 2026.
  9. U.S. EIA: Form EIA-861, 2024 dataUtility shares of Arkansas homes; Entergy Arkansas average 12.97¢. Read September 30, 2026.
  10. U.S. EIA: average residential price by state13.43¢, 12 months August 2025 to July 2026, as used in the Cost Index.
  11. Arkansas DFA: Form AR1000TC 2025, income tax creditsNo home solar credit. Read October 1, 2026.
  12. Arkansas DFA: report on state tax exemptions and credits, January 20256.5% state sales tax; no exemption for home solar equipment. Read October 1, 2026.
  13. IRS: Residential Clean Energy CreditNo credit for property placed in service after December 31, 2025. Read September 30, 2026.
  14. 2025 Annual Technology Baseline: residential PVOwner costs of $29.83 per kW a year, rounded to $30 for upkeep.
  15. Berkeley Lab: solar self-consumption research (2022)Informs the 40% home-use planning default. It is not a measured Arkansas average.
  16. Delta Solar: Solar installation in Texarkana, ARSays it is licensed in Arkansas; no number given. Little Rock office from its contact page. Read October 13, 2026.
  17. Seal Solar: FAQ1-year workmanship warranty, loans over 5 to 25 years. Read October 13, 2026.
  18. Stitt Solar: Solar panels5-year workmanship warranty. Read October 13, 2026.
  19. Stitt Solar: Solar serviceOn-site service visits carry a fee. Read October 14, 2026.
Dean Mahmoud
Written by

Dean Mahmoud

CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.

About Dean
Trevor Guilday
Checked by

Trevor Guilday

Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.

About Trevor