Free Solar Panels In Arkansas?

Arkansas At A Glance

Arkansas is situated in the southeastern United States and boasts a diverse landscape, from the rugged Ozark Mountains to the expansive Mississippi Alluvial Plain. The state’s moderate climate, characterized by hot summers and mild winters, provides an ideal backdrop for various outdoor activities.

Arkansas possesses significant potential for solar power generation. The ample sunshine it receives throughout the year, with many areas enjoying over 5 hours of sunlight per day on average, makes it conducive to effective solar energy production. The state has embraced solar incentives and policies, including tax credits, rebates, and net metering programs, enhancing the attractiveness of solar investments for residents and businesses.

By tapping into its solar resources, Arkansas can not only reduce dependence on traditional energy sources, potentially lowering electricity costs, but also stimulate economic growth, create jobs, and contribute to a cleaner and more sustainable energy future. As technology advances and solar installations become more cost-effective, Arkansas stands poised to play a significant role in the broader adoption of renewable energy.

The Benefits Of Going Solar

There are different reasons people choose to go with solar panels. Some of the benefits can be:

• Save money
• Energy independence
• Increase your homes value
• Support the renewable energy industry
• Earn cash back with incentives

Is The Free Solar Panel Pitch A Scam?

In Arkansas, there are companies offering free solar panels however they are not actually free and many people feel that this marketing is a scam. As pricing for certain things goes up people tend to be more critical of how things are promoted.  I don’t think it’s a scam it’s just a way to grab your attention. 

We see all sorts of advertisements for things that are free, and because these are lower-cost items we generally don’t have a problem with them we just accept them.  The old rule of thumb remains true, nothing is truly free.

There are a few different ways to get solar panels installed for free, however, and despite the feeling that the free solar panels pitch is deceptive, all these programs are trying to get you set with solar panels so you can start saving money.   The pros and cons of each plan vary and not every option is right for everyone.

The Real Scam With The Free Solar Panels

There are real scams in Arkansas to watch out for. 

Individuals who are trying to persuade you into buying something that ultimately falls short of its promised capabilities.

You have to be careful as such deceptive practices are used across various industries, and it becomes particularly a concern when considering significant investments like solar panels. Whether you opt for a long-term lease or outright purchase of solar panels, ensuring their performance meets your expectations is very important.

The worst outcome would be to invest in a solar system that not only fails to deliver as anticipated then ends up raising your monthly expenses instead of lowering them. 

Zero Cost Solar Options in Arkansas

As we have said there are several ways to go with solar with no out-of-pocket expense. 

You can get setup with a solar power system and have it start saving you money every month immediately. Here are a few ways to go with solar power in Arkansas.

Power Purchase Agreement

The power purchase agreement is probably the most common program advertising free solar panels.

In this arrangement, a company commits to installing, overseeing, and upkeeping a solar panel system on your home’s roof, while you, in turn, commit to buying power from the company that owns and manages the solar panels. Although it entails a long-term contract, it offers a more favorable rate on your electric bill. The intricate process of setting up the solar panels is largely taken care of, providing you the convenience of sourcing your power from a sustainable and clean energy solution.

Solar Lease

The solar lease is similar to the power purchase agreement except instead of purchasing power from the company that owns the solar panels, you are renting the panels instead. 

When leasing your solar panels you get a set monthly bill from your solar company and in turn, get to use the power they generate to lower your electric bill.  With this plan, your payment to your solar company will not vary on your electric use and when combined with any amount you do owe the electric company should still come to a lower cost than what you had been paying for before.

Solar Loan

Taking out a loan to purchase solar panels doesn’t seem like a free option.   

However, you are going to be paying for your electricity already. If you can purchase solar panels with a solar loan companies try to tailor the loan for you so that what you are paying each month is less than what you have been paying for electricity. Again you are getting solar panels set up with no upfront cost and start saving money.

In addition, since you own the solar panels your home value increases and there are many incentives that you may qualify for that will reduce your initial cost and may even put money back into your pocket.

Cash Purchase

The cash purchase is probably your best value option, but probably seems like the least free option there is. 

Yet, if someone were to propose, “Purchase this $100 item with cash today, and I’ll send you a $100 check tomorrow,” many would perceive the item as essentially free. While the scenario with solar panel acquisition isn’t as straightforward, the application of a 30% tax incentive, along with additional state and local benefits, could significantly reduce your solar investment.

Subsequently, the installation contributes to a roughly 4% increase in your home’s value. For instance, if your home is valued at $250,000 and you invest $15,000 in solar panels, the 30% reduction from the Investment Tax Credit (ITC) brings your cost down to $10,000, contributing to the heightened value of your home. While not equivalent to liquid cash, the analogy holds a similar principle.

Furthermore, there may be additional incentives available for you to claim, enhancing the overall financial appeal of transitioning to solar energy.

Arkansas’s Commitment to Clean Energy

Arkansas, situated in the heart of the southern United States, is increasingly making strides towards a cleaner and more sustainable energy future.

Recognizing the environmental and economic benefits of renewable energy, the state has taken significant steps to diversify its energy portfolio. Government initiatives, coupled with growing public awareness, have fostered a commitment to harnessing cleaner sources of power. Solar energy, in particular, holds promise in Arkansas, thanks to its abundant sunlight and supportive policies, including tax incentives and rebates, encouraging the adoption of solar technology.

As the state looks towards reducing its carbon footprint and embracing a greener path, the pursuit of a clean energy future in Arkansas reflects a broader national trend, aligning with global efforts to address climate change and ensure a more sustainable and resilient energy infrastructure for future generations.

Goals 

Many states set specific renewable energy or clean energy goals.

These goals are often expressed in terms of a percentage of total energy production or consumption that should come from renewable sources by a certain target year. These goals provide a general framework for state commitment to clean energy but may not be legally binding.

Commitments

Some states go beyond setting goals and make formal commitments to specific clean energy targets.

These commitments may involve the passage of legislation or the adoption of executive orders that establish concrete targets for renewable energy adoption, emissions reduction, or other clean energy-related objectives. These commitments often signal a stronger political will to transition to cleaner energy sources.

Renewable Portfolio Standard

An RPS is a regulatory policy that mandates a certain percentage of a state’s electricity to come from renewable energy sources within a specified timeframe.

Arizona does not have a specific Renewable Portfolio Standard (RPS) in place.

While some states have adopted RPS policies to promote the use of renewable energy and reduce carbon emissions, Arizona has not implemented such a standard at the state level. Instead, the state has relied on a combination of market forces, federal incentives, and local initiatives to drive the adoption of renewable energy. It’s essential to check for any updates or changes in Arizona’s energy policies, as the landscape of renewable energy regulations can evolve

Solar Carve Out

Some states include specific carve-outs within their overall RPS, designating a certain percentage of the renewable energy target specifically for solar power.

This reflects a targeted effort to promote the development and adoption of solar energy within the broader context of renewable energy goals.

Reducing The Cost Of Going Solar In Arkansas

There are many incentives help offset the the cost of going with solar panels, in some states you have access to a lot of them and some very few. 

Solar Incentives in Arkansas Yes or No

Here is a quick list of common incentives and whether or not they are available in Arkansas.

YES – The Federal Investment Tax Credit (ITC)

NO – State Solar Tax Credit

NO – State Solar Sales Tax Exemption

NO – Solar Renewable Energy Credits

NO – Feed In Tariffs

YES – Net Metering ( by some providers)

NO – Solar Grants

Incentives For Going Solar

With a growing push for solar and other renewable energy sources to be adopted, there have been many government incentives to help lower the cost of going with solar power and other renewable energy sources.

Many of these incentives aim to directly lower the cost of solar panels in the form of tax credits.  Others dictate the amount of compensation you receive when you produce more power than you use.  Others still have simply dictated how much energy needs to be produced by renewable energy and have left it up to the utilities to decide how they make that happen. 

The Federal Investment Tax Credit (ITC)

• A 30% Federal Tax Credit

State Solar Tax Credit

• An Income Tax Credit against your state income tax

State Solar Sales Tax Exemption

• Solar panels can be purchased without paying the normal sales tax in Arkansas

Renewable Portfolio Standard

• A commitment that the state has made to move the state to clean renewable energy.

Solar Carve Out

• A certain portion of the Renewable Portfolio Standard, that states how much clean energy needs to come from solar power.

Solar Renewable Energy Credits

• Credits that are awarded to owners of solar panels for how much solar energy they produce.

Feed In Tariffs

• This is a guaranteed set price that electricity companies are required to pay for any excess power produced and sent back to the grid generally set at above market rates.

Net Metering

• This is similar to the Feed In Tariff but is not generally above market rate and can be offered by individual electric companies.

Solar Grants

• Solar grants are like any grant, free money to get people set up with solar panels.  Although these are few and far between, some do exist from time to time.

Power Purchase Agreement

• An agreement between a solar company and the homeowner where solar panels are installed on the home but still owned by the solar company.  In return, the homeowner agrees to purchase power from the solar company.

Solar Lease Agreement

• A solar lease agreement is where a company installs solar on your home and you are basically renting the solar panels, and get to use them to generate electricity for you to use.

Solar Loans

• Solar loans are essentially home improvement loans but are designed specifically to help people get using solar panels and may be tailored to work with Federal State and Local incentives.