Energy Incentives
Sunny Arkansas has some laws favorable for solar power and renewable energy. Plus, the Federal solar investment tax credit (ITC) applies and is currently worth 26% of the cost of your system; it gets deducted from your income tax.
Net Metering
Net metering laws are quite strong in Arkansas. Net metering is when solar panels or other renewable energy generators are connected to the public utility, and surplus power is transferred into the grid. You not only save by producing your own clean energy, but you effectively sell the excess to the power company in the form of a credit on your power bill.
Federal Tax Credit Is the Biggest Incentive
The solar Investment Tax Credit (ITC), is worth 26 percent of the system cost, and will be deducted from your federal income tax. Keep in mind that the federal ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), not to those who lease it. The percentage goes down a bit in 2021, one of many reasons why it makes sense to take advantage of the incentives now and go solar.
