What Act 278 changed and when
Act 278, passed by the 94th General Assembly in 2023, overhauled Arkansas net metering. The pivot date for grandfathering was September 30, 2024.
Projects developed before that date were locked at the one-to-one rate for a 20-year contract duration, running through September 2040. For those customers an exported kilowatt hour and a consumed one are worth the same.
Customers interconnecting after September 30, 2024, with certain exceptions, take service under a non-legacy net metering schedule. Under it, generation consumed on site offsets a retail purchase while excess exported to the grid is compensated at avoided cost.
Avoided cost is a wholesale-style measure well below the roughly 14.2 cent Arkansas residential average, so the difference between the two arrangements is substantial rather than marginal.
Establishing which side you are on
For a new installation the answer is straightforward: you will be on the non-legacy schedule. Design accordingly rather than from a guide written before the change.
For an existing system, the development date determines it, and that is a documented fact rather than a matter of recollection. Ask for it in writing and confirm the schedule with the utility.
For a home purchase, ask whether the grandfathered status transfers to a new owner, what has to be done to effect that, and by when. An arrangement that does not survive the transaction is worth nothing to you.
A pre-September-2024 array with fourteen years of one-to-one crediting remaining is a materially different asset from an identical array installed last month.
What the non-legacy schedule asks of a design
Electricity you consume at the moment it is generated offsets a purchase at the full retail rate. Electricity you export earns avoided cost. Those are very different amounts.
So annual production stops being a useful summary of what a system is worth. What matters is how much of that production your household absorbs as it happens.
Ask what self-consumption share the savings model assumed, and ask for the savings split into two lines: avoided purchases at the retail rate, and exports at avoided cost.
Ask for a smaller system modelled alongside the proposal. Under this arrangement the marginal panels produce mostly exports, so a design covering less than your full annual usage frequently returns better.
What the number should be built from
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Little Rock receives no federal tax credit, and Arkansas has no state solar tax credit.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is full retail value for what you consume as it is generated, avoided cost for exports under the non-legacy schedule, and the electricity you stop buying at around 14.2 cents per kWh.
Ask for those two values separated in the projection, with the self-consumption share stated on the page.