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Incentives/Policies for Renewables & Efficiency

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Net Metering   

Last DSIRE Review: 08/20/2014
Program Overview:
State: Arkansas
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Microturbines using Renewable Fuels, Small Hydroelectric, Fuel Cells using Renewable Fuels, Microturbines
Applicable Sectors: Commercial, Industrial, Residential, General Public/Consumer, Nonprofit, Schools, Local Government, State Government, Fed. Government, Agricultural, Institutional
Applicable Utilities:Investor owned utilities and electric cooperatives
System Capacity Limit:300 kW for non-residential; 25 kW for residential
Aggregate Capacity Limit:No limit specified
Net Excess Generation:Credited to customer's next bill at retail rate.
Following an annual billing cycle, up to an amount equal to 4 months' average usage can be carried forward into the next annual billing cycle
REC Ownership:Customer owns RECs
Meter Aggregation:Allowed
Web Site:
Authority 1:
Date Enacted:
Date Effective:
Arkansas Code ยง 23-18-601 et seq.
4/19/2001 (subsequently amended)
Authority 2:
Date Enacted:
AR PSC Order No. 8, Docket 06-105-U
Authority 3:
Arkansas Net Metering Rules
Authority 4:
Date Enacted:
AR PSC Order No. 7, Docket No. 12-060-R
Authority 5:
Date Enacted:
HB 2019

In April 2001, Arkansas enacted legislation (HB 2325) directing the Arkansas Public Service Commission (PSC) to establish net-metering rules for certain renewable-energy systems.* The PSC approved final rules for net metering in July 2002. Subsequent legislation enacted in April 2007 (HB 2334) expanded the availability of net metering.  In 2012, the PSC amended the net metering rules to exempt local, state and federal government entities and agencies from previously required indemnity agreements (Docket 12-001-R Order No. 6). On November 6th, 2013 the PSC approved new net metering tariffs for all utilities under its jurisdiction.

Eligibility and Availability

Residential renewable-energy systems up to 25 kW in capacity and non-residential systems up to 300 kW are eligible for net metering. Eligible technologies include solar, wind, hydroelectric, geothermal and biomass systems, as well as fuel cells and microturbines using renewable fuels. There is no limit specified for the aggregate capacity of all net-metered systems.

increased the capacity limit for non-residential systems from 100 kilowatts (kW) to 300 kW; improved the law's provision for the carryover of net excess generation (NEG); and clarified the ownership of renewable-energy credits (RECs).

Net Excess Generation

Customers carry over any NEG to the following monthly bill at the utility's retail rate. Any NEG remaining at the end of an annual billing cycle is granted to the utility. However, HB 2019 of 2013 allows customers to carry over NEG equal to an amount of up to four months of average usage. 

Renewable Energy Credits (RECs)

Customers own the RECs associated with their systems.

Meter Aggregation

The PSC ruled in favor of meter aggregation in September 2013 with Order No. 7 in Docket No. 12-060-R. Any customer with multiple meters within a single utility's service territory may designate multiple meters to be offset by a single net metering system or or multiple systems. The net metering customer must give the utility at least 30 days of notice. The additional meter or meters must be identified at the time of the request and must be in the net metering customer's name. The net metering customer must also designate the rank order for the additional meters to which the excess kWhs will be credited.


The PSC is authorized to allow utilities to assess net-metered customers "a greater fee or charge of any type, if the electric utility's direct costs of interconnection and administration of net metering outweigh the distribution system, environmental, and public policy benefits of allocating the costs among the electric utility's entire customer base."

* Municipal utilities do not fall under the PSC's jurisdiction and are not required to follow the PSC's rules. The PSC regulates investor-owned and cooperative utilities.

  JD Lowery
Arkansas Department of Economic Development
Arkansas Energy Office
900 W. Capitol, Suite 400
Little Rock, AR 72201
Phone: (501) 682-7678
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.