Is solar worth it in Arkansas?

A 7.0 kW rooftop system near Little Rock produces about 9,891 kWh a year. Priced against the 2 residential tariffs currently on file in Arkansas, payback runs from 22 years on the best of them to 43 on the worst.

No federal tax credit applies to a purchased system. Section 25D ended on December 31, 2025. Leases and power-purchase agreements can still reach the business credit (48E) through 2027, but it is claimed by the system's owner, not by you. Every figure on this page assumes no federal credit and no state or utility incentive.
1413kWh per kW per year
#7of 16 states measured
52%used on site, not exported
$21,000system cost at $3.00/W

Why the tariff matters more than the panels

Two households in Arkansas with identical roofs and identical systems can see paybacks 22 and 43 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 52% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.

That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →

Payback by tariff in Arkansas

7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 2 of 2 tariffs here belong to a utility that reports residential net metering.

UtilityTariffStructure Annual savingPayback
Oklahoma Gas & Electric Co Residential Service Time-Of-Use(R-TOU) Time-of-use + tiered $469–$942 22–45y
Oklahoma Gas & Electric Co R-1 (Residential Service) Time-of-use $483–$917 23–43y

Price it for your own usage and system size →

What would change this

Your roof. Production is modeled for Little Rock on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within Arkansas itself.

Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.

Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.

State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.