Louisiana solar incentives, tax credits and rebates
Resources to make solar panels more affordable in 2024
There’s no way around it: Installing solar panels is expensive. On the bright side, Louisiana residents can take advantage of federal solar tax credit. There is also a 100% statewide property tax exemption on the value that solar panels add to your home.
Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable in the Pelican State.
In Louisiana, a typical residential solar panel system costs $10,255 to $29,300, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Louisiana homeowners buying solar panels.
Jump to insightElectrical utilities compensate residents at the avoided cost rate when they sell excess solar power to the local grid.
Jump to insightResidential solar panel incentives in Louisiana
The federal solar investment tax credit (ITC) is the best financial incentive for most homeowners buying solar panels in Louisiana. It reduces your federal tax liability by 30% of how much it costs to install solar panels.
The ITC drops to 26% in 2033 and then 22% in 2034.
The ITC is a credit, meaning it directly decreases the amount of taxes you owe. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If in the year your system becomes operational you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
Solar for All program
Louisiana's new Solar for All program aims to bring solar power and energy storage to low-income homes and communities. It offers easy, affordable financing options and supports community spaces and disadvantaged businesses.
The program focuses on creating clean energy jobs, involving communities in planning and addressing barriers like unfamiliarity with solar. Overall, it strives to make clean energy accessible to everyone, especially those previously left out of the green energy transition.
Community leaders are also looking to solar energy to reduce how often people in Louisiana lose power in storms. Projects include community solar efforts for those who would have trouble affording panels for their own homes. Check DSIRE for the most comprehensive source of information about solar incentives and policies in Louisiana.
What to know about net metering in Louisiana
Net metering is a system of give-and-take between you and your utility company. It lets you access power from the grid when your panels don’t generate enough electricity. Net metering also lets you earn credits for sending any excess solar energy to the grid.
In Louisiana, you pay the full retail price for energy you buy from the utility. You get credited at "avoided cost" for the energy you sell to the utility. Avoided cost rates are updated yearly. As of publishing, avoided cost rates are around 3 cents per kilowatt-hour (kWh).
| Electric utility | Avoided cost rate per kWh |
|---|---|
| Ashley-Chicot Electric Cooperative, Inc. | $0.028527 |
| Beauregard Electric Cooperative, Inc. | $0.02742 |
| Claiborne Electric Cooperative, Inc. | $0.02742 |
| Cleco Power, LLC | $0.02759 |
| Concordia Electric Cooperative, Inc. | $0.02742 |
| Dixie Electric Membership Corporation (DEMCO) | $0.02759 |
| Entergy Louisiana, LLC | $0.0276802 |
| Jefferson Davis Electric Cooperative, Inc. | $0.02742 |
| Northeast Louisiana Power Cooperative, Inc. | $0.02742 |
| Panola-Harrison Electric Cooperative, Inc. | $0.02957 |
| Pointe Coupee Electric Membership Corporation | $0.02742 |
| South Louisiana Electric Cooperative Association (SLECA) | $0.02742 |
| Southwest Louisiana Electric Membership Corporation (SLEMCO) | $0.02742 |
| Southwestern Electric Power Company | $0.029568 |
| Washington-St. Tammany Electric Cooperative, Inc. | $0.02742 |
Any grid-connected systems can still tap into the local power grid when needed. The alternative is to store it in a battery. That way, you can still turn your lights on when panels aren’t generating electricity, like at night or on especially cloudy days. The biggest downside is that solar storage battery costs can be almost as high as the panels — $7,000 to $18,000.
» GREENEST STATES: Louisiana ranked 28th in 2024
How much are solar panels in Louisiana?
After considering the federal solar tax credit, solar panel costs in solar panel costs in Louisiana typically range from $10,255 to $20,510.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Louisiana is 10.97 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy usage.
Average solar cost by system size in Louisiana
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $14,650 | $17,580 | $20,510 | $23,440 | $26,370 | $29,300 |
| After federal tax credit | $10,255 | $12,306 | $14,357 | $16,408 | $18,459 | $20,510 |
Solar resources in Louisiana
Below are some additional resources that can guide you through transitioning to solar in Louisiana.
- Alliance for Affordable Energy
- Louisiana Department of Natural Resources
- Entergy Louisiana net metering
- Cleco Power net metering
» GUIDE: Solar panel installation
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.
| Companies | Customer rating | Pro install | Payment options | Year founded |
|---|---|---|---|---|
| Sunrun | 4.3 | Cash, loan, lease | 2007 | |
| Tesla Energy | 2.0 | Cash and loan | 2015 | |
| ShopSolar | 4.7 | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Louisiana?
No, but you can enter a solar lease with little to no upfront costs. Still, neither is totally free. Solar leases generally require a flat monthly fee; PPAs make you pay per unit of electricity.
» FREE SOLAR PANELS: Are they really free?
How does the solar property tax exemption work?
A solar property tax exemption means that — for tax purposes — the addition of a solar energy system won’t result in an increase in your property's assessed value. Essentially, your property tax bill won’t go up because your solar panels increase the market value of your home.
It’s an ad valorem tax exemption, which means “according to value” in Latin. The exemption applies to solar panels, solar water heaters, solar space heaters and solar pool heating.
How much can I save with solar panels in Louisiana?
On average, Louisiana homeowners with solar panels avoid $54,636 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Louisiana, solar panels usually pay for themselves within 11 years.
» EXPLORE: Where solar savings go the furthest
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). Leasing is often cheaper upfront, but you won’t be eligible for the federal solar tax credit.
» SOLAR PANELS: Lease vs. buy
What has Louisiana’s investment in solar been so far?
Total solar investments in the state amount to $968 million, according to the Solar Energy Industries Association.
» BEST STATES FOR SOLAR: Louisiana ranked 46th in 2024
Bottom line
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, particularly in Louisiana.
Solar costs vs. savings: Louisiana and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Arkansas | $16,020 | $26,700 | 11.19 kW | $2.67 | $67,139 |
| Louisiana | $17,580 | $29,300 | 10.97 kW | $2.93 | $54,636 |
| Mississippi | $18,840 | $31,400 | 11.5 kW | $3.14 | $59,530 |
| Texas | $12,600 | $21,000 | 10.32 kW | $2.10 | $61,774 |
Article sources
- DSIRE, "Louisiana Programs." Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in Louisiana." Accessed March 29, 2024.
- Solar Energy Industries Association), "Louisiana Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Louisiana, 2024?" Accessed March 29, 2024.
- Louisiana Illuminator, “Solar gardens encouraged to grow in New Orleans.” Accessed Aug. 15, 2024.
- 6. ABC News, “Some faith leaders in this city band together for solution on spotty power.” Accessed Aug. 15, 2024.
- Louisiana Public Service Commission, “Avoided Cost Rate by Electric Utility.” Accessed Aug. 15, 2024
- United States Environmental Protection Agency, “Solar for All.” Accessed Aug. 13, 2024.
