Solar & Net Metering Policy
Net metering is available in Arkansas, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Act 278 transitioned the state from 1:1 net metering to a net-billing structure compensating at avoided cost. Arkansas does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations.
Net Metering Notes
Act 278 transitioned the state from 1:1 net metering to a net-billing structure compensating at avoided cost.
Does Arkansas have net metering?
Yes. Arkansas has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Act 278 transitioned the state from 1:1 net metering to a net-billing structure compensating at avoided cost.
What solar tax credits are available in Arkansas?
Arkansas does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Arkansas?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Arkansas for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Arkansas?
Arkansas does not have a statewide solar property tax exemption. The added value from a solar installation may be included in your property assessment. Check with your county assessor for local rules.
Is there a sales tax exemption for solar in Arkansas?
Arkansas does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does Arkansas have an SREC market?
Arkansas does not currently have an active SREC market. Solar owners in Arkansas cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Arkansas?
Statewide utility rebates are not currently available in Arkansas. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
Arkansas Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.