Arkansas · Tax exemption · Mid-stack program
AR Solar Property Tax Exemption
Removes a tax burden residential solar owners in Arkansas would otherwise carry -- see what it covers, eligibility, and payback impact below.
- Property tax exemption
- stated benefit
- Residential
- eligible customers
- 17.2 yr
- Arkansas baseline payback
- 2
- other Arkansas programs
Mid-stack program · late directory
Arkansas stacks 3 tracked programs; this tax exemption sits beside peer levers on a 17.2-year modeled baseline.
- Stack3 programs
- In-state #2/2
- Type #2/45
- Baseline17.2 yr
In-state directory place #2 of 2 (late alphabet). National tax exemption directory #2 of 45. Amounts and eligibility change; verify with the official program page before relying on a dollar figure. Informational only - not financial advice. See our disclaimer.
Program description
Arkansas exempts the added value of solar systems from property tax.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- Property tax exemption
- State electricity rate
- 11.4¢/kWh
- Arkansas solar score
- 24/100
Solar's trajectory in Arkansas
The market this incentive operates in: total installed solar capacity in Arkansas reported to the EIA.
Arkansas's solar incentive stack
How this tax exemption sits among Arkansas's 2 tracked programs, by type
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
What this shows Arkansas tracks 2 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
Where this tax exemption sits in Arkansas's mid-size stack
The AR Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Arkansas's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Property tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. Arkansas averages 4.8 kWh/m²/day of usable sunlight and residential rates of 11.4¢/kWh, producing an estimated 8,410 kWh/year and $959 of annual utility offset on a typical 6 kW system costing $16,500. That baseline already implies a 17.2-year simple payback and a 25-year modeled net of roughly $7,475 before this incentive - every dollar this tax exemption delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. Arkansas has 3 solar incentive programs indexed in DSIRE, including adjacent options like AR Net Metering. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Other Arkansas incentives
Frequently asked questions
What is the AR Solar Property Tax Exemption among Arkansas's mid-size programs?
How does the AR Solar Property Tax Exemption work?
Who qualifies, and what does a late in-state directory place mean?
How does this incentive affect solar ROI in Arkansas?
Are there other solar incentives in Arkansas?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology · Arkansas solar data · ROI calculator · All incentives.