Arkansas Net Metering (Act 278): What Changed & How to Plan

Recent updates to Arkansas net metering laws have sparked a lot of discussion. Act 278 reshaped how homeowners are credited for the solar power they send back to the grid. Here’s what you need to know to make the most of your solar array.

How Did Net Metering Work in Arkansas?

Before Act 278, Arkansas had one of the most favorable net metering systems in the nation. Homeowners who installed solar panels earned 1:1 energy credits. For every kilowatt-hour (kWh) sent to the grid, they received an equal kWh credit to reduce their energy bills. This “retail rate net metering” allowed families to offset their power bills almost completely.

Other perks included:

• Energy banking: Credits rolled over month to month, even across calendar years.
• Flexible system sizing: Residential and commercial systems could be sized based on actual energy needs.
• Meter aggregation: Homeowners could apply credits to multiple properties within their accounts.

Arkansas’ net metering was simple, fair, and profitable. Then Act 278 changed everything.

How Has Act 278 Changed Solar in Arkansas?

Under Act 278, the energy buyback rate dropped significantly. Instead of a full retail credit, exported electricity now earns only 20% to 40% of its previous value.

The updated Arkansas net metering rules also:

• Do not allow energy credits to roll over indefinitely.
• Restrict credit use to meters within 100 miles of the solar array.
• Add new distribution fees for shared or aggregated meters.
• Limit residential systems to 25 kW and commercial systems to 300 kW.
• Introduce time-of-use (TOU) rates, where the value of electricity changes based on when you use it.

These adjustments were driven by concerns from utility companies about cost-sharing. The new model shifts focus from selling energy back to the grid to using more of what you produce.

Are Solar Panels Still Worth It in Arkansas?

Yes. Solar energy’s ROI calculation may look different under Arkansas’ new net metering rules, but solar panels still make financial sense. Since Act 278 took effect, homeowners have continued to cut their power bills, lock in energy savings, and protect against rising utility rates.

The trick is to adjust how you think about solar. Instead of relying on credit banking, focus on using your solar energy as it’s generated. You can also add a battery backup system to tap into solar energy at night or when rates are higher.

How Solar Batteries Change the Math

Solar batteries store excess energy for later use. Instead of losing value through reduced net metering credits, stored energy can power your home at strategic times:

• During outages: Backup power keeps the essentials running when the grid goes down.
• At night and on cloudy days: Use more energy from your solar panels rather than selling it back to the grid at a lower rate.
• During peak hours: Tap into stored energy when utility power is most expensive. Peak hours are typically in the late afternoon and evening when demand on the grid is highest.

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What to Ask Your Utility Company and Installer

How will Act 278 affect my current or future system?

If you installed solar before September 30, 2024, your system will be grandfathered under the old Arkansas net metering law until September 30, 2040. However, all new installations follow Act 278.

Can I still connect multiple meters to one solar array?

Yes, but under Act 278, those connections must be within a 100-mile radius and may include new distribution fees, which could affect your ROI.

What’s the best way to maximize savings now?

The new Arkansas net metering rules are here to stay. Pairing solar with a home battery and using more of your own power is now the best way to maximize savings and promote the best return on investment.

Schedule Solar Services with Solera Energy

At Solera Energy, we understand how to design systems that perform under any policy change. Our licensed experts handle everything, from system design and installation to battery storage, so you can focus on saving money.

Let’s create a solar plan that fits your energy needs and the new Arkansas net metering law. Contact us today for a free consultation.