- Cardinal land investors llc arkansas solar install#
- Cardinal land investors llc arkansas solar full#
This means that your only two options for installing a solar PV system are to purchase the system in cash or to take a HELOC – home equity line of credit. Unfortunately, solar leasing and power purchase agreements (PPAs) are not available in Arkansas. The good thing is that the 30% ITC helps offset this, and the end result will be in your favor! Are There 0 Down Payment Financing Options in Arkansas?
Cardinal land investors llc arkansas solar install#
If you will install a residential solar PV system in Arkansas, keep in mind that you will have to pay the sales tax, and you will also be taxed on the increase of property value. Which Taxes Apply for Solar PV Systems in Arkansas?
The best way to make sure you size your solar PV system correctly is to talk to our experts, who can get you in touch with reliable solar contractors close to you.Ī qualified contractor willcalculate just the right size of system to meet your energy needs throughout the year without going overboard.Īlso keep in mind that Arkansas does not have a standard interconnection process for solar PV arrays: this is yet another reason why you should look for the best solar PV installers, and make sure your system will operate safely and reliably. If there is a month where you produce more energy that what you consume and have to export the surplus to the electric utility grid, don’t worry, you will get 100% of the price of the exported energy as a credit on your next electricity bill. If you install a solar PV system in Arkansas, you will still pay less for your energy over the system’s lifetime, and the environmental benefit will be comparable to planting more than 100 trees.įortunately, Arkansas has one of the best net metering policies in the US. However, when you take into account the entire lifetime of the photovoltaic system, you are getting electricity at a lower price that if you purchase 100% of your energy from the electric utility grid. The electricity price in Arkansas is $0.10 on average, and this is the main reason why the payback period of a solar PV system tends to be extended. The ITC was set to expire in 2016, but fortunately the government has renewed in order to further motivate home and business owners in the USA to implement solar PV systems.
Cardinal land investors llc arkansas solar full#
You have to pay the full price of the system during installation, but will see the ITC savings as soon as you file your next tax declaration. While there are no state-specific tax credits in Arkansas, you can still take advantage of the 30% ITC, which as its name implies allows you to deduct 30% of a PV system’s cost from your taxes. This could change in the near future thanks to the Clean Power Plan announced by President Obama in 2015, which sets forth a nation-wide directive to reduce emissions. With this, the quote for your solar PV system in Arkansas drops to around $14,700. Subtract the federal solar tax credit at 30%, and you can deduct around $6,300. The upfront price of the residential PV system will be in the range of $21,000. Here is our breakdown of the costs and savings when installing a 5 kW PV system in Arkansas:
This is equivalent to $2.8 per installed watt, which is great for a residential solar PV system when you consider that the installed price is commonly in the range of $3 to $4 per watt. However, by making use of the available tax credits and considering the first year savings, it is possible to reduce the year one cost to around $14,000. In order to illustrate the project financials for a solar PV system in the state of Arkansas, let’s assume a 5-kilowatt system is installed in an Arkansas home.įor this system, you can expect to pay more than $21,000 upfront, which is equivalent to $4.2 per installed watt. Return of Investment for Residential Solar Power in Arkansas This ensures that you save the full price of every single kWh of energy produced by your system, as opposed to only a fraction of the price, which is a common practice among electric utilities in many other states. This represents a considerable solar power potential that you can benefit from if you live in the city.Īrkansas also has a very favorable net metering policy, where the entire price of any kWh you export to the grid becomes a credit on the next month’s bill.
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