Louisiana Solar Incentives, Tax Credits and Rebates

Residential solar incentives in Louisiana

Louisiana doesn’t offer a state income tax credit for new residential solar systems. The state’s former solar tax credit has ended.

Louisiana was also awarded about $156 million through the federal Solar for All program, but that funding was canceled in August 2025 and is not currently available. The federal residential solar tax credit also ended for systems installed after Dec. 31, 2025. One remaining benefit is a property tax exemption.

How the solar property tax exemption works in Louisiana

Qualifying solar equipment attached to an owner-occupied home is exempt from property taxes. This means an assessor generally shouldn’t add the value of the solar system when calculating the home’s taxable value.

The exemption covers solar panels and certain systems used for water, space or pool heating and cooling. It applies only to the value of the solar equipment, so your overall property tax bill could still change for other reasons.

Did you know?

Some Louisiana communities are exploring solar panels, batteries and microgrids to keep essential facilities powered during storm-related outages.

» LEARN: How does community solar work?

What to know about net metering in Louisiana

Louisiana calls its policy net metering, but it works more like net billing for most new solar customers. Customers pay the full retail rate for electricity they buy from the utility and receive a lower avoided-cost credit for excess electricity sent to the grid.

Most new customers of utilities regulated by the Louisiana Public Service Commission (LPSC) receive avoided-cost credits for excess solar electricity sent to the grid.

These rules generally apply to systems installed — or interconnection requests submitted — after Dec. 31, 2019. Older systems may be covered by different rules.

For 2026, export rates from utilities regulated by the LPSC are about 3.6 to 4 cents per kilowatt-hour. Rates vary by utility. Entergy New Orleans customers and people served by municipal utilities should check their local rules.

A grid-connected solar system can use utility power when the panels aren’t producing enough. But most solar-only systems shut down during an outage. Backup power usually requires a battery and compatible inverter. Home batteries cost $7,000 to $18,000.

How much are solar panels in Louisiana?

Solar panel costs in Louisiana typically range from $11,700 to $23,400.

Your system size greatly affects how much you pay overall. The typical system size for solar systems in Louisiana is 12.6 kW. You might need a larger or smaller system, depending on your average household energy usage.

Average solar panel costs by system size in Louisiana

How to pay for solar panels in Louisiana

Common options include paying cash, taking out a solar loan, leasing the system or signing a power purchase agreement.

Paying cash usually has the highest upfront cost but can result in a lower total cost. A loan lets you spread payments over time but adds interest and possible fees. With a lease or power purchase agreement, the solar company owns the panels, which may lower your upfront cost but can create a long-term contract you’ll need to address if you sell your home.

Federal mortgage options for solar panels

Some federal mortgage programs let eligible borrowers include solar panels and other energy upgrades in a home purchase or refinance loan. Eligible improvements, financing limits and lender requirements vary by program.

• FHA Energy Efficient Mortgage: Eligible borrowers may be able to finance cost-effective energy improvements through an FHA-insured purchase or refinance loan. A home energy assessment is required, and the improvements must be expected to save at least as much as they cost. FHA has separate financing rules and limits for eligible solar and wind systems.
• VA Energy Efficient Mortgage: Eligible VA borrowers may be able to add up to $6,000 in approved energy improvements to a VA-backed purchase or refinance loan. For improvements costing more than $3,000, the lender must document the costs and confirm that the projected monthly energy savings exceed the added mortgage cost.

» SOLAR PANELS: Lease vs. buy

Find solar companies in Louisiana

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Louisiana’s top solar companies to learn more.

FAQ

Bottom line: Are solar panels worth it without incentives in Louisiana?

Solar can be worth it for some Louisiana homeowners, but the numbers vary. Your potential savings depend on the system’s price, financing costs, household energy use and how much solar electricity you use directly instead of sending to the grid.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar and incentives in other states. Turns out, it’s worth it for many homeowners, even in Louisiana.

Solar costs vs. savings: Louisiana and nearby states