Global interest in sustainable living and energy efficiency has increased, and solar panels have become a valuable asset for homeowners. However, in Arkansas, renewable energy adoption is on the rise, and many are discovering that it can boost property value while offering long-term savings. Energy Efficiency and Renewable Energy (EERE) indicates people are ready to pay more for houses with green power systems.
Below, we address important concerns about solar panel installation and their impact on home value in Arkansas.
Do Solar Panels Increase Home Value in Arkansas?
It is true that sun-powered panels have the potential to elevate the value of a home in Arkansas. Zillow projects that the value of homes in Arkansas will continue to rise, with an appreciation of 2.6% in 2024 and 2.8% in 2025. Homes that have solar panels installed typically sell for 6.8% more than those that do not. Thus, they may boost a property’s value by improving its curb appeal.
What Types of Solar Panel Systems Are Most Beneficial?
Selecting sunlight energy systems depends on what your needs are. Remote locations, rural areas, homes, or businesses and industries require different energy demands. There are many green power models available, but common requirements are high efficiency, durability, energy independence, and potential for reduced energy costs.
You can choose your power system tailored to your needs.
| Sustainable power systems | Applications |
| Grid-Tied Solar Panel Systems | Homes and Businesses |
| Off-Grid Solar Panel Systems | Remote locations, rural areas, homes or businesses |
| Hybrid Solar Panel Systems | Homes and businesses |
| Building-Integrated Photovoltaics (BIPV) | New construction projects, building renovations, and architectural designs |
| Concentrated Photovoltaic (CPV) Systems | Utility-scale solar power plants, large commercial/industrial applications. |
| Thin-Film Solar Panel Systems | Building-integrated photovoltaics, solar roofs |
| Bifacial Solar Panel Systems Solar | Utility-scale power plants, commercial/ industrial/residential applications |
Solar panel operation for Arkansas residence
Before discussing worth while panels for homeowners, it’s important to know how solar panels work.
When sunlight hits solar panels, photovoltaic cells convert it into electricity. This generated electricity is used to power a home; it can be stored in the batteries for use at a later time. Moreover, excess electricity is sold back to the grid.
Types of solar panels for residential solar installations
Thin-Film Solar Cells
These films are lightweight and flexible, which makes them easier to install on a variety of surfaces. They are also less expensive than traditional green-power panels. However, their efficiency in converting sunlight into electricity may be compromised.
- Cheaper and flexible
- Lower efficiency (average EER < 10%)
- Shorter lifespan (up to 20 years)
Monocrystalline Solar Panels
These panels are well-known for their high efficiency as well as their long lifespan. This makes them a popular choice for homes with solar power systems. While the initial cost might be higher, their durability and performance make them a worthwhile investment. That leads to maximizing their energy savings.
- More Expensive
- Highest efficiency (15%-20%)
- Maximize energy savings
- Polycrystalline panels
Polycrystalline Panels
When compared to other solar panel installation options, these are more budget-friendly. They are a viable option for residential use despite having a slightly lower efficiency compared to monocrystalline panels, but they still manage to strike a balance between performance and durability.
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Cost-Effective
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Moderate efficiency (13%-16%)
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Sufficient Energy
Solar panels in Arkansas — worth it?
Arkansas is a great place for solar panels, as the state receives abundant sunlight throughout the year; it helps homeowners to get numerous benefits that come along with it and get your answer: How much does solar increase home value?
1. Low Inventory:
Residential properties with solar panels are more appealing to buyers due to the low inventory and expected mortgage rate drop. This increased demand can lead to higher property values. That makes the initial investment in going green well worth it for homeowners in Arkansas.
2. Energy Savings Appeal:
EIA sets an average electricity rate of 12.52 cents per kWh, which can significantly minimize utility bills when going green; furthermore, they are becoming more attractive to home buyers as an energy-efficient feature. Homeowners in Arkansas can enjoy reduced electricity costs for years to come. That makes the decision to go solar even more worthwhile.
3. Market Trends:
According to NREL, a home’s market value rises by $20 for every $1 saved by installing a solar energy system. Therefore, with the anticipated gradual increase in existing home sales, sustainable properties may attract more attention, and Arkansas housing demand rises.
4. Future Rent Growth:
Tenants are nowadays more interested in renting properties with solar panels to save on utility bills. This trend could lead to an increase in demand for rental properties. Higher rent prices due to home value increases with solar panels could result in increased rental income for property owners.
5. Sustainability Factor:
Installing solar panels reduces carbon emissions and reliance on traditional energy sources, which are important environmental factors. Additionally, it also increases property value and appeals to environmentally conscious buyers. real estate market shifts towards more sustainable and Eco-friendly housing options in Arkansas.
6. Long-Term Investment:
Investing in solar panels can be seen as a long-term investment in property value, apparently. They can be expensive to install, but they can ultimately save homeowners money on energy bills in the long run. This can make the initial investment worth it over time.
7. Increased home resale value:
Housing demand in Arkansas is higher with sustainable amenities, as property values increased 6.8% in 2024. And house sales jumped 12.5%. Therefore, selling a home with solar panels can potentially yield a higher resale value.
What are Considerations Before Installing Solar?
Pros and cons of solar panels in Arkansas should be carefully considered before making a decision. Consulting with Xova Energy, a reputable solar provider, can help you make an informed decision based on your specific circumstances.
- Optimal location
- Proper roof orientation
- System size according to requirement
- Budget-supportive planning
How Do Solar Panels Affect Energy Costs?
Arkansas green power systems reduce energy costs easily. These panels convert sunlight into electricity, which may reduce or even get rid of the need to buy electricity from the grid.
However, for some homeowners, the initial cost of switching to green might be a problem.
Example: Assuming a 10-kW power system is installed in Arkansas, let’s estimate the return on investment.
Key Considerations for ROI:
System Costs Before Incentives:
There are many factors affecting the cost of a 10-kW solar system that vary depending on installation size, panel quality, and local rates. Arkansas systems average $2.75–$3.25/W.
Federal Tax Credits:
With the help of the federal Investment Tax Credit (ITC), the upfront costs can be significantly reduced because homeowners can deduct 30% of the installation costs.
State Incentives:
Residents of Arkansas can get paid for sending extra energy back to the grid through net metering, which increases their return on investment even more.
The taxes on real estate:
Arkansas does not offer property tax exemption. It’s important to consider the potential increase in property taxes when calculating the overall ROI; further, increase your home’s value also.
| State | 10-kW System Cost Pre-Tax Credit | Federal Tax Credit Deduction | State Tax Credit Deduction | Post Credit Cost | Averge-Cost Per Watt | Time to ROI |
| Arkansas | $28,500 | $8,550 | N/A | $19,950 | $2.85 | 12 years, 5 months |
The ratios here are estimated, which can be modified; always check with local regulations and incentives to get the most accurate information for your specific situation.
Factors Affecting ROI in Arkansas
- Energy Consumption: Solar investments pay off faster in homes that are more energy-efficient.
- Utility Rates: As rates rise over time, solar offers long-term savings.
- System Efficiency: A well-maintained system maximizes power output and reduces payback periods.
Conclusion
Solar panel installation is a win-win for Arkansans homeowners in terms of both economics and the environment. With local incentives, significant energy savings, and added property value, solar energy offers compelling benefits. Homeowners should consider aspects like market conditions and their long-term sights prior to installation.
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