Alternative Solutions to the Rising Cost of Electricity
The average Arkansas home pays at least $1550 per year for electricity. Households that install solar panels may see an immediate change to their monthly utility bill, however, solar panels are a long-term investment. Depending on the size of the solar array and the electricity needs of the customer, it can take many years before households will see a complete return on their investment.
How Much Can Solar Save?
Save on Your Bill
There are currently 43 solar companies operating in Arkansas, including 14 manufacturers and 14 developers and installers. There are also solar calculators online that can help you find what you can save and when you'll see a return on your investment.
Net Billing
Arkansas is also a net-billing state, which means that if the solar panels on your property are generating more electricity than your home can use, then you may be able to sell the excess back to the power company for a credit on your next utility bill, which could further increase your savings.
How Much Does Solar Cost?
The price to install solar on your property is determined by several factors, but the main one is how big of a system you want to install.
Solar Tax Incentives
You can offset some costs of installation by taking advantage of any tax credits and rebates that are available. While Arkansas doesn't offer any incentives at the state level, there is a federal Residential Clean Energy Credit which allows you to deduct 30% of the cost of eligible clean energy installation such as solar. Additionally, some solar manufacturers offer rebates as an incentive to purchase from them.
Other Financing Options
You can also look at financing options, such as opening a Home Equity Line of Credit, getting a solar loan, or even financing directly with the installation company.
Solar Lease Agreements
For homes wanting to take advantage of solar energy but unable to afford the upfront costs, there are a few more options available. Some companies offer Solar Service Agreements (SSA), in which the company owns, operates, and maintains the solar panels on your property and sells the energy generated to you for a predetermined period. The SSA payments are offset by lower utility costs to make the service budget neutral or even budget positive.
SEPO Agreements
Power companies also may have solar programs in place. Entergy Arkansas is the largest power company in the state, servicing 63 counties. Entergy offers a Solar Energy Purchase Option (SEPO), where some power provided to your home comes from one of their solar power plants. The SEPO agreement is available to customers on a first-come, first-served basis, but it provides a credit on your utility bill to lower your monthly charge.
Contact Your Farm Bureau Agent
Solar panels may affect the price of your homeowners insurance. Wondering how it could impact yours? Talk to a Farm Bureau agent about your homeowners insurance policy today.
