Arkansas Solar Power Rebates, Tax Credits, and Incentives

nlr riverfrontpark 012 l Arkansas Solar Power Rebates, Tax Credits, and Incentives

Solar Legislator Score:  Arkansas Solar Power Rebates, Tax Credits, and Incentives

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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Read the 25 brilliant comments below or add yours!

clint Identicon Icon 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 Identicon Icon 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 Identicon Icon 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

TC Identicon Icon TC
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

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 Identicon Icon tony chamberlain
Comment on April 24th, 2008.

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

Gubner Goober Identicon Icon Gubner Goober
Comment on June 2nd, 2008.

The elec co-ops in AR are more concerned with their coal supplies from Wyoming and the train lines between, than any major push to truly get people off the fossil fuels (where they pay lip service to consumer alternatives but that’s about it, and the notion of retail wheeling makes them simply freak out) — where a combination of solar, geo, and nuke power are the best long-term ways to go, versus expanding the gas and coal plants that are the norm here and many other places. For the Natural State, the natural political state is unfortunately the FDR relic penchant for blaming somebody else instead of doing something better. Sad, but true. Not too hopeful.

T.E. Williams Identicon Icon T.E. Williams
Comment on June 13th, 2008.

When will Arkansas power suppliers create a win/win situation that benefits all of the state? There are millions of energy conserving families with middle to low income that would love to employ solar energy if only it was more affordable. ARansas is at the bottom of every list in the nation that aspires to progression in health/safety, and at the top of every list that is less than cost effective for its citizens. This should be a wake-up call to those with the power to implement and effect changes for the good of all.
Wake up legislators, APL and Entergy, Help us to help you!

MVP Identicon Icon MVP
Comment on July 12th, 2008.

What is wrong with this generation. How come everyone EXPECTS the government, local or national, to pay for everything that we want. Isn’t taxes high enough. If the legislators in Arkansas were to pass an incentive to help pay for solar pawer for our homes they will use that as an excuse to tax the HECK out of us. Probably 10 times more than the incentives would cost the state. I had much rather see the legislators reduce taxes than to have another excuse to raise them. Go back and read OY NOT SOLAR’s post, he is exactly right. We need to do all we can to conserve and join in and fight the politicians to make our goverments smaller.

Stephanie Identicon Icon Stephanie
Comment on July 16th, 2008.

We plan on building a new home in the next few years. We’d always assumed we would install as much solar as we could afford.
After using the handy dandy online solar estimate and mopping the coffee off the monitor; there is simply no way we’d be able to afford to go solar, $61,000 for a mid level estimate? That’s AFTER the $2000 Fed rebate. That estimate only figures 50% of our monthly power! It would take close to 50 years to re-coup the initial cost. I don’t have plans on living another 50 years to pay for it.
Don’t get me wrong; I’m the greenest person I know in Perry County. I’m a fiend to recycle, my 10, 11 and 12 yr old kids know more about making good compost than most adults they know and we conserve as much as we possibly can. But this really worries me. What happend to the thought of the longer something is around the cheaper it is? On the “green” network I heard someone say, “why doesn’t every home in the nation have solar panels?” DUH! Who can afford them?
I’ll personally be glad when being “green” isn’t the “in” thing to do anymore and prices start to drop again.
End of rant.

Greg Identicon Icon Greg
Comment on August 10th, 2008.

I think its time the people of arkansasget on board an go green. I would like to go solar ,but I cannot aford $45,000.00 investment for my home or family.

John Identicon Icon John
Comment on August 12th, 2008.

Hang tight you bunch of whiners. As soon as Walmart (or Sams) starts to sell solar panels and/or systems we will all join the solar (green) band wagon and get to enjoy the fruits of our beloved Walmart.

I agree with the clown that states the obvious on Arkansas taxation and will add that any help by the State will only enrich the already rich and suck more from the poor (I am not complaining because I am one of the rich who would benefit.)

So hang tight until Sam comes to the rescue!

Arby Identicon Icon Arby
Comment on October 16th, 2008.

Most of Arkansas does not have the wind necessary to produce electricity( Northwest Arkansas is the exception) . This make solar the most likely option for green thinking Arkansas’s, however as the above article indicates the good old boys at the state capital has once again let us down. At very little cost to the state they could mandate that utility companies operating in the state generate a portion of their power from green/ renewable sources ,in the state. The capital investment associated with solar and wind is much higher than coal and natural gas. The utility company most like avenue to achieve the new goal would be to look to residential and small businesses via the net metering arrangement (Net metering allows the consumer to generate power and sell it back to their utility company) The utility companies would come up with low cost loan and rebate program to encourage their consumers to install grid connected wind and or solar system. End result forward and green thinking Arkansas’s would benefit from lower utility bills and Arkansas would be a cleaner place to live. That’s how I see it

ARW Identicon Icon ARW
Comment on December 18th, 2008.

I wonder if there are any serious explorations of geothermal (like @ Hot Springs) as a replacement for coal-fired plants.

It appears that several countries have developed usable technology for geothermal plants.

jeff Identicon Icon jeff
Comment on January 8th, 2009.

Interested in installing solar systems in N. central Arkansas. Looking for some one to train with.

jeff@ozarkrustiques dot com

terry Identicon Icon terry
Comment on January 23rd, 2009.

I am trying to find out what education / background is needed to get started as an solar panel installer. I feel this may be a booming business in the coming years and would be interested in pursuing this career.

Harold Butler Identicon Icon Harold Butler
Comment on March 4th, 2009.

See http://www.solarenergysupply.net They are a trainer and supplier of solar equipment. Terry wanted to see about becoming an installer. Go to that website.

Ashley Identicon Icon Ashley
Comment on April 21st, 2009.

Arby – that makes more sense than anything I’ve heard.

Comment on May 6th, 2009.

I would like to have a solar unit installed if I can afford it. I have contacted some contractors on line just now but probably won’t hear from them for a few days. I’m almost ready to retire and would like for my utilities to be as low as possible at that time!

Heather Mendez Identicon Icon Heather Mendez
Comment on May 25th, 2009.

I am planing on building a solar panel for my home, does anyone know any persons or companies that may be willing to sell or give away damaged or out-dated solar cells?

Dana Identicon Icon Dana
Comment on June 8th, 2009.

I cant beleive we live in such a wonderful State that offers no incentive programs to go green. I would love to install a geothermal system but need a little help to offset the cost. We need to do something in order to start saving the world.

Candy Identicon Icon Candy
Comment on July 30th, 2009.

I live in Arkansas near the Louisiana state line. Louisiana gives a 50% tax credit. Wake up Arkansas.

Michael Walker Identicon Icon Michael Walker
Comment on October 4th, 2009.

Entergy services SE Texas, LA, MS, and AR. At present, Entergy gives Texas residents a check for $2.50 per WATT for solar panels installed. So a panel array of $50,000.00 would get you a check in the amount of $12,500.00 up front. In addition to that you would get a $15,000.00 federal tax credit on your taxes for the tax year installed. My question is, if Entergy TExaas gives the $2.50 per WATT credit why not Arkansas, too? Should we start a petition to get Entergy of Arkansas to follow suit?

JGG Identicon Icon JGG
Comment on October 12th, 2009.

We as a people here in Arkansa are smart enough to learn how to build our own systems for solar panels!!! look it up on the Web that is were I am going, yes some trial and errors but in the end it will be worth it to be off the grid or at least a push in what they charge. I feel that if one start and others follow soon these Goliath will learn there lesson where they feel it the most , their profits, that come from our wallets.

Comment on October 12th, 2009.

JGG, good luck building your panels. Please make sure you have safe components,please be safe with the electric hook up, please make sure you have enough sun, that the panels are at the right angle and that they are oriented optimally towards true south, not magnetic south. Or you could go with a pro who does this stuff every day.

That’s not to say you can’t do it. It’s just a lot of work. Be safe and have fun.

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