Solar incentives and tax credits available in Fayetteville, AR

Solar Incentives in Fayetteville, AR

Complete guide to solar tax credits, rebates, and incentive programs available to Fayetteville homeowners in 2026.

%

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Fayetteville homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Fayetteville, AR.

Arkansas State Solar Incentives for Fayetteville Homeowners

Net Metering

Net Metering

Arkansas has a strong net metering policy that allows solar customers to receive full retail rate credits for excess generation.

Full retail rate credit for excess solar production

Net Metering in Fayetteville, AR

Available

Arkansas requires investor-owned utilities and electric cooperatives to offer net metering at full retail rates for systems up to 25 kW.

Solar Renewable Energy Credits (SRECs) in Fayetteville

Not Available

Arkansas does not currently have an SREC market or solar carve-out in its renewable energy standards.

Tax Exemptions in Fayetteville

Property Tax Exemption
No property tax exemption for solar systems
Sales Tax Exemption
No sales tax exemption for solar equipment

How to Claim Solar Incentives in Fayetteville

  1. Install your solar system: Work with a qualified Fayetteville solar installer to design and install your system.
  2. Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
  3. Apply for state programs: Contact your Arkansas energy office or local Fayetteville utility to apply for available incentives.
  4. Set up net metering: Contact your utility in Fayetteville to set up net metering and start earning credits.
  5. Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Solar Incentives FAQ - Fayetteville, AR

Fayetteville homeowners can take advantage of the 30% federal solar tax credit, plus 1 state-level incentive programs, net metering. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Fayetteville homeowners approximately $5.2k on a typical system. Combined with Arkansas state programs, total savings over 25 years can reach $27k or more.

Arkansas requires investor-owned utilities and electric cooperatives to offer net metering at full retail rates for systems up to 25 kW.

To claim the 30% federal ITC, Fayetteville homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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30%Federal Tax Credit
25+Year Savings
$0Down Options