Arkansas vs Tennessee Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of Arkansas and Tennessee solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | AR · Arkansas | TN · Tennessee |
|---|---|---|
| Avg Monthly Bill | $155 | $165 |
| Peak Sun Hours / Day | 5 ◆ | 4.8 |
| Avg $/Watt Installed | $2.95 | $2.85 ◆ |
| State Tax Credit | None | None |
| Net Metering | retail | None |
| SREC Market | No | No |
| Property Tax Exempt | No | No |
| Sales Tax Exempt | No | No |
| Avg Payback (yrs) | 9.1 ◆ | 9.6 |
| Avg 25-Year Savings | $30,200 ◆ | $28,900 |
State Tax Credit Comparison
Arkansas offers no state income tax credit. Tennessee offers no state income tax credit.
Net Metering Policies
Arkansas: retail rate net metering active. Tennessee: no statewide net metering mandate.
Net metering is often the most economically significant solar policy because it determines how excess production is valued. Retail-rate states (where you receive full retail price for exported energy) have substantially better solar economics than avoided-cost or no-net-metering states.
Average 25-Year Savings
Arkansas: $30,200 over 25 years (avg payback 9.1 yrs). Tennessee: $28,900 over 25 years (avg payback 9.6 yrs).
Verdict: Which State Wins on Solar?
Arkansas edges out Tennessee on lifetime savings primarily due to higher solar irradiance.
Note: state averages mask significant within-state variation. Your specific utility, roof orientation, and household electricity profile drive your actual numbers — use the calculator to model your home directly.