Can I Get A Tax Incentive For Solar Power In Arkansas?

by Rachel Zimmerman | Mar 9, 2022 | Residential

Solar power usage has increased across the country in recent years. According to the Solar Energy Industries Association, Arkansas ranked 30th in the country in 2021 for solar usage. One of the main determining factors for homeowners and business owners to consider is the cost of installing solar. While the cost has decreased overall in the past decade or so, it can still cost homeowners upwards of $15,000 or more to install solar panels in Arkansas.

However, tax credits and other incentives are available to help offset this cost, and we are here to help you understand these incentives.

1. Federal Tax Credit For New Solar Panel System Installations

The state of Arkansas doesn’t offer a tax credit or incentive for installing a new solar panel system. However, consumers can take advantage of the federal Investment Tax Credit of 26%, which is available to homeowners, commercial customers, and utility investors. It’s important to note that the 26% tax incentive is only valid through December 31, 2022 and it will decrease to 22% on January 1, 2023. After 2023, the incentive is scheduled to expire unless Congress renews it. So even though Arkansas does not offer any state-level tax incentives, the federal incentive is still significant enough to help consumers offset some of the cost of installing solar.

2. Understanding Arkansas Net Metering

One state-level benefit you can take advantage of in Arkansas is net metering. This means no matter which utility company you use, you can receive a full retail electricity credit when your solar panels produce more electricity than you need. The utility provider will monitor these numbers to ensure you receive credit for any surplus electricity generated. The credit you receive will vary from month to month, but the savings can add up over time.

3. Take Advantage Of Solar Cost Savings

Think about the example above in which you could save 26% on the cost of solar installation. Now think about the future cost savings on your energy bill, which can equate to anywhere from $400 per year to a couple of thousand dollars per year, depending on the size of your home or business and how you use energy. It’s reasonable to think the average consumer will recover the entire cost of the solar system in 10-15 years. When financing your project, you will often see savings starting month 1.

So if you plan on living in your current home for the next couple of decades, then a solar system is an investment worth pursuing. But even if you sell your home before you recoup your investment, homebuyers are attracted to solar systems and your property value could increase as a result.

Seal Solar wants to help you save as much money as possible on solar panels in Arkansas. The federal tax incentive for 2022 and favorable net metering laws makes it worth not putting off installing a solar system any longer. Investing in solar power will pay for itself over time regardless of these credits and incentives, but who wouldn’t enjoy some extra money back in their pockets? We will help you sort through all of your options and develop a customized quote for your property.

Don’t hesitate to contact us to get the process started and be on your way to reducing your energy bills and contributing to the environment in a positive way.

Is it Expensive to Install Solar Power in Arkansas?

by Rachel Zimmerman | Mar 3, 2022 | Residential

As traditional energy costs continue rising across the country, many homeowners are pursuing other options to help lower their energy bills. Going solar is a popular choice, but the question property owners often have: “Is it worth it?”

There’s no doubt installing solar panels in Arkansas can create some level of sticker shock to consumers when they see the upfront cost. But there are more factors to consider than just the initial cost, including the long-term savings, tax breaks, and much more. We’ve broken down the facts so you can understand the true cost of solar power in Arkansas.

1. Average Solar Panel Installation Cost In Arkansas

The cost of installing solar panels in Arkansas depends on many factors, including the size of your property, how much energy you use, and more. However, just to provide numbers, you can expect to pay around $15,000-$50,000 for a solar array in Arkansas. These initial numbers can deter people from even considering solar panels, but let’s take a closer look at what’s involved in the cost and how solar can be more affordable upfront, and how soon you can recover your entire investment.

2. Break Down The Cost Into Multiple Factors

The solar panels themselves typically account for about 25% of the cost. The largest percentage of the cost involves permits, monitoring, connection fees, and other operational costs. The cost of the solar panels themselves depends largely on how many panels you need which is determined by the sunlight exposure they’ll receive on your roof. The property’s orientation, roof type, and shade cover also factor into the cost, so you’ll need to have a complete evaluation to fully determine the price of installing solar panels.

3. Will Your Investment Be Recovered?

If you’re pursuing solar power in Arkansas, you’ve likely heard going solar will pay for itself over time. But how long will it really take to recover the large investment? The cost of solar panels has declined over the years even as utility bills have risen. So when you install solar panels in Arkansas, you immediately enjoy a reduction in your energy bill. Depending on how much energy you use, how large your property is, what your current electricity cost is, and other factors, you could recover your solar system investment in as little as five years. If your property is in an ideal location for solar power, you might be able to recover the investment quicker.

4. Take Advantage Of Any Incentives Available

Another major factor to consider when budgeting for solar power in Arkansas is the incentives offered. You can enjoy a federal tax credit of 26% if you install solar panels in 2022. This credit applies to both homes and businesses. So for a solar system that initially costs $20,000, the tax incentive would reduce the price to around $15,000. 

If the upfront cost after all tax breaks and incentives are still a little high for your budget, you can also apply for financing. By financing the array, you can pay for your system in monthly payments. There are plenty of ways to make solar arrays in Arkansas more affordable.

5. Enjoy The Long-Term Benefits Of Going Solar

When it comes to installing solar panels on your home or business, remember it takes time to get a full return on your investment. By reducing your monthly energy bills, the savings will add up quickly and you will lock in your utility bills for the next 20+ years in a rising utility rate environment. 

Seal Solar provides free online estimates so you can learn solar panels will cost. We also inform you of all incentives available to help you save as much money as possible. 

Are you ready to own a residential solar array? Learn more about solar and how it works by viewing our Solar Power 101 series!

Get your free estimate today and make the switch!

How to Prevent Arkansas Power Outages with Solar Power

by Rachel Zimmerman | Feb 15, 2022 | Residential

Solar Power in Arkansas eBook

All You Need To Know!

Renewable energy can make sense on the surface, but there’s also a lot of facts to digest to ensure you make the right decision. Some of the information in our eBook includes:

 

• How solar power works
• What solar panels in Arkansas cost
• Understanding the categories of solar arrays
• Benefits of switching to solar power
• And much more