Decent sun hours and Entergy's net metering make Arkansas a middle-tier solar state. Lower costs help improve returns.
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Arkansas offers moderate solar economics: With 4.8 daily peak sun hours and relatively low installation costs at $2.75/W, the state provides decent conditions for solar adoption. Entergy's net metering program supports residential solar.
For Little Rock and Fayetteville homeowners, solar delivers reasonable returns with 10-12 year payback periods. Lower costs and good sun exposure help offset modest electricity rates.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| Entergy Net Metering | Full retail credit | Active |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $16,500 | $11,550 | ~$1,050/yr | ~11.0 years |
| 8 kW | $22,000 | $15,400 | ~$1,400/yr | ~11.0 years |