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Solar Cost Per Watt in Arkansas
Average $$2.60/W • Rank #$7 of 51 • 11.3-year payback • Updated 2026
Urgent tax credit deadlines
- Section 48E phase-out completes December 31, 2027 — projects must be placed in service by then (469 days left).
Cost Per Watt
$2.60
avg in Arkansas
vs National
$-0.10
(-3.7%)
Payback (8kW)
11.3 yrs
avg
Sun Hours/Day
5
peak
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Cost Per Watt by System Size in Arkansas
Cost per watt typically decreases for larger systems (economies of scale).
Bars show Arkansas's $/W for each system size. Lower = better value.
| System Size | Cost Per Watt | Total Cost | vs National Avg |
|---|---|---|---|
| 4 kW | $2.86/W | $11,440 | +$0.16 |
| 5 kW | $2.73/W | $13,650 | +$0.03 |
| 6 kW | $2.65/W | $15,900 | $-0.05 |
| 7 kW | $2.60/W | $18,200 | $-0.10 |
| 8 kW | $2.55/W | $20,400 | $-0.15 |
| 10 kW | $2.47/W | $24,700 | $-0.23 |
| 15 kW | $2.39/W | $35,850 | $-0.31 |
2027 Price Outlook: Section 232 Solar Tariff
On August 6, 2026, a Section 232 proclamation under the Trade Expansion Act of 1962 imposed a15% ad valorem tariff on imported solar polysilicon derivatives (wafers, cells, and finished modules, all origins) and Minimum Import Price (MIP) floors — including a $0.38/W module floor. Raw polysilicon-only imports are subject only to the $21/kg MIP floor, not the 15% tariff. Effective December 4, 2026 and enforced by U.S. Customs and Border Protection (CBP), these rules apply to all imported modules regardless of origin or FEOC status. The cost-per-watt figures on this page reflect pre-tariff 2026 pricing; expect 2027 installed costs in Arkansasto rise as the module floor passes through the supply chain. See ourfull tariff trade-policy guidefor the duty-stacking table and sourcing details.
Solar Cost Overview for Arkansas
In Arkansas, the average installed cost for residential solar is $2.60 per watt, with typical systems ranging from $2.60/W to $2.60/Wdepending on the installer, equipment quality, and roof complexity. Arkansas ranks #7 out of 51 states (1 = cheapest) for solar affordability — 6 states have cheaper solar.
Arkansas is below the national average — solar is competitive here.
What's Driving Arkansas's Solar Costs?
Arkansas's $$2.60/W average reflects a combination of below average equipment costs,below-average local utility rates ($0.144/kWh vs national avg $0.1844/kWh), and above-average solar resource (5 sun hours/day vs national avg 4.7).
Note on panel pricing:Prices shown reflect AVL/DomCon-compliant panels. The 30% residential federal tax credit (Section 25D) expired December 31, 2025 — an owned residential system installed in 2026 receives $0 in federal credit regardless of panel choice. Non-compliant panels (Mission, JA, Canadian) are available from $0.37/W panel-only and additionally disqualify the Section 48E credit (lease/PPA/commercial) and IRA bonus credits.See current ITC status →
Arkansas Solar Incentives & Policies
Net Metering
Reduced-rate net billing
State Tax Credit
None
Property Tax Exemption
No
Sales Tax Exemption
No
⚠ 2026 Federal ITC Update
The Section 25D residential solar tax credit (30%) expired December 31, 2025. Owned residential systems installed in 2026 no longer qualify. The 48E ITC (30%) remains available for lease/PPA, commercial, and rental properties - pre-July 4, 2026 construction starts keep the standard window; later starts must be placed in service before January 1, 2028.
States With Similar Solar Costs
| State | Avg $/W | vs Arkansas | Payback | Sun Hours |
|---|---|---|---|---|
| Arkansas (you) | $2.60 | — | 11.3 yrs | 5 |
| Florida | $2.60 | +$0.00 | 9.2 yrs | 5.8 |
| Indiana | $2.60 | +$0.00 | 9.9 yrs | 4.5 |
| Louisiana | $2.60 | +$0.00 | 10.4 yrs | 5.5 |
| Mississippi | $2.60 | +$0.00 | 9.3 yrs | 5.4 |
| Nebraska | $2.60 | +$0.00 | 13.5 yrs | 4.4 |
Arkansas Solar Cost FAQs
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Related Tools
Arkansas cost-per-watt data based on 5 ZIP code samples. Production estimates use NREL PVWatts V8 (azimuth 180°, tilt 30°, array_type 1, module_type 1, losses 14%). Utility rate averages from NREL Utility Rate API V3. The federal Section 25D residential solar tax credit expired December 31, 2025.