Arkansas Solar Power Rebates, Tax Credits, and Incentives

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A small rock formation on the southern bank of the Arkansas River was used as a landmark by French explorers in the early 1700s. La Petite Roche, “the little rock”, soon became the site of a trading post. A century later it was incorporated as the city of Little Rock, and had grown in importance to become the Territorial Capitol. Today, the State Capitol of Little Rock is the most populous city in Arkansas, with about 204,000 residents living in the city and about 650,000 in the greater metropolitan area. Little Rock also serves as the Pulaski County seat.

STATE LEGISLATION

As with most states, Arkansas has initiated a number of loan programs and other initiatives that reward energy efficiency in residential and commercial construction. However, renewable energy programs are notably lacking. State officials currently offer no solar incentives, and they don’t seem to have any on the drawing board, either.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, and UTILITY INCENTIVES
Net Metering is offered in Arkansas through all utility companies. Provisions apply to solar thermal electric, photovoltaics, wind, biomass, hydroelectric, and geothermal, and in virtually all sectors: residential, commercial, industrial, government, institutional, and non-profit organizations. Systems can be up to 25 kW for residential applications and 300 kW for commercial use. The net excess of power generated by the customer is applied as a credit to the next month’s bill; any excess remaining at the end of a 12-month billing cycle reverts to the utility company. Details of this program can be found in the most recent version of HB2334.

There are only a small handful of Arkansas customers participating in Net Metering arrangements.

EXAMPLE RESIDENTIAL SOLAR INSTALLATION

Residents of Little Rock enjoy a good bit of sunshine, and the area earns a solar rating of “great”. Combined with the state’s relatively high energy consumption and electrical utility rates, there are several important reasons to go solar. Unfortunately, with the exception of a federal tax credit of $2,000, there are no financial incentives to spur the use of solar power in Arkansas.

Entergy Arkansas supplies power to Little Rock and about half of the 1.3 million electrical customers in the state. Average usage is 13,584 kWh/year. Replacing about 50% of that electrical consumption with solar power can be accomplished with a 500 square foot area roof installation at a (midrange) cost of approximately $45,000, or a net cost of $43,000 after the federal tax credit.

The benefits:

Estimated increase in property value – $9,900
Estimated 25-year utility savings – $20,771
Estimated reduction in greenhouse gases (CO2) – 139 tons

CONSENSUS

There is not much left to be said. State programs to foster the use of solar energy are virtually non-existent, and Arkansas must be ranked as one of the worst in the country in this regard. It’s time for the legislators to roll up their sleeves and put their state back into the game.

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6 comments.

clint

Comment on January 8th, 2008.

I have been researching solar power for my residence and when I checked on the rebates and discounts on a system I found out that if I produce more than i can use in a year I have to give it to the electric company, Well thats just wrong what have they ever given me besides a bill or price increase. Why should I spend all of this money to get set up and not be payed for the service I provide them. I don’t see a reason for anyone to want to go solar and until they come up with a better system than giving my energy away then I guess I will have to keep going the way I am going.

Lionne

Comment on January 24th, 2008.

What can we do to get renewables in the spotlight? I am a new resident here in the state and want to create government subsidies for solar in the state of Arkansas. We must let our legislators know that we want our energy generation to be recognized and rewarded.

sincerely, lionne

Geannine

Comment on March 6th, 2008.

The sad part about all of this is we are distorying our plant and those who are trying to do something to inprove it have to spend a arm and a leg to do so.(does this seem backwards to you).Solar power is a extreem renewable source of power and the bottom line comes down to how much money one can make.(on something they do not own to begin with).what needs to happen is insteed of getting goverment rebates and loans to buy the system, make the system affordable to the masses and put the money hog out of the busisness of killing our one and only world. untill then those who have the money rule the world and will contiune to distroy it.
Tring to do my best in Arkansas, Geannine

Comment on March 17th, 2008.

In the state of Arkansas, we have a long way to go. I have been sending e-mails to Rep. Marion Berry, who is on the Appropriations committee on Renewable Energy, to try and drum up some incentives for people on the fence about Solar Power. I personally am installing Solar Panels on some rental houses my family owns. With the knowledge I have gained I am slowly starting Solargy Services. I have alot to learn, and I’m sure I’ll have to be patient, and keep wiring houses until it catches on, not for my lack of trying. I plan on holding an information seminar in Mt.Home,AR. in May. The State Gov. needs to re-examine the decision to do Nothing for residents/business owners to help with the Very high prices of Solar Systems. Any help would be appreciated, I have many questions.
TC

OY Not Solar

Comment on April 17th, 2008.

I noticed that someone said the cost was to much and someone else said you had to give the utility any extra power you produce.

First thing yu need to understand is if you are renting your electric from the public utility you have no return on your investment at all. Just payment stubs. A solar electric system will last 30 plus years and if your current electric bill is 100 dollars a month that is $36,000. But you know your bill will increase by the rate of inflation, a min of 3.5% but at current energy rates are a lot higher. Check the gas pumps and that pass on to everything else. So over the next 30 years you will pay around $100,000.oo if still renting electric from the utility.

If you go solar your rates don’t change so you end up making money no matter if the state pays for half your install or not.

And for the part of giving the utility free power.. Don’t get a system bigger then what you need. Any Solar dealer in Arkansas can size you a system to meet your needs. One other thing in the state of Arkansas is you are able to rollover your over production for up to one year.

So far all the utilities in Northwest Arkansas have been easy to deal with on netmetering. You give them the form with all 4 sections (name and address and account number and system info) filled out and they will come out test the system and give you a new meter.

I do wish the State of Arkansas would help a little. But that day will come.

tony chamberlain

Comment on April 24th, 2008.

TC
Where and when in May will you give your seminar?