Incentive Type: State Rebate Program
Eligible Renewable Technologies: Solar Water Heat, Photovoltaics, Wind
Applicable Sectors: Commercial, Residential, Nonprofit, Local Government
Amount: PV: $1.50/kWh for systems 25 kW or under, $0.75/kWh for systems over 25 kW
Wind: $1.25/kWh for systems 20 kW or under, $0.625/kWh for systems over 20 kW
Solar Water Heating: $30/sq. ft. for systems 320 sq. ft. or less, $15/sq. ft. systems over 320 sq. ft.
Eligible System Size: Electricity-generating systems must meet the size requirements of the net metering and interconnection policies (25 kW or smaller for residential, 300 kW or smaller for non-residential)
PV: 60 kW or smaller if ground mounted; systems on rooftops or parking structures must be appropriately sized;
Wind: 20 kW or smaller (larger systems may be considered on case-by-case basis);
Equipment Requirements: All equipment must be new and commercially available. Systems must meet UL, IEEE, NEC, and SRCC standards, if applicable.
Funding Source: The American Recovery and Reinvestment Act of 2009 (ARRA)
Program Budget: $1,780,000
Program Start Date: 3/22/2010
Program Expiration Date: 3/31/2012
Summary: NOTE: This rebate program is available to both residential and small, non-residential systems. However, the rebate program is not yet being offered to non-residential systems. It will be offered to non-residential systems when a list of approved contractors has been developed for the program.
Beginning March 22, 2010, the Arkansas Energy Office is offering rebates to residential renewable energy systems used to generate electricity and solar water heating systems. Funding for the rebate comes from The American Recovery and Reinvestment Act of 2009 (ARRA). Solar photovoltaic (PV), small wind, and solar water heating systems are eligible to receive the rebate. Local government systems receiving Energy Efficiency and Conservation Block Grant funding for renewable energy systems from the Arkansas Energy Office are not eligible for this rebate program.
Electricity-generating systems must sign an interconnection agreement and be net-metered in order to receive the rebate. Systems must meet net metering size requirements. Residential systems must be 25 kilowatts (kW) or smaller and non-residential systems must be 300 kW or smaller. In order to receive the rebate, the system must not be interconnected until after the start date of the rebate program. All systems must apply for the rebate using a form available online and submit a photo of the installation site prior to installing the system and prior to interconnection (for electricity-generating systems).
The rebate for PV and small wind is based on the actual first year production of the system. This amount is verified through monthly monitoring over the first year of operation. Rebate checks are mailed out quarterly, as production is verified. The rebate for PV systems is $1.50 per kilowatt-hour (kWh) for systems sized 25 kW or less and $0.75/kWh for systems over 25 kW. The rebate for wind systems is $1.25/kWh for systems sized 20 kW or less and $0.625/kWh for systems over 20 kW. Wind systems over 20 kW must be specially approved on a case-by-case basis to receive a rebate. Rebates for solar water heating systems are based on collector area. Systems that are 320 square feet or less will receive $30/square foot; systems that are greater than 320 square feet will receive $15/square foot. Solar water heating systems must be SRCC-certified and must be installed on a residential or small commercial building. Rebates are available through March 31, 2012, or whenever program funds run out.
Taxpayers and commercial business owners are granted an energy tax credit of 30% of the total expenses, which include installation of residential or commercial solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses. Residential wind energy installations and geothermal pumps are also subject to a tax exemption.