Cost of solar panels in Louisiana (2024)

How much do solar panels cost in Louisiana?

With professional installation, a typical 8-kilowatt residential solar panel system in Louisiana costs $23,440. That price drops to $16,408 after the full federal solar investment tax credit (ITC).

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence and essential if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar systems in Louisiana is 10.97 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar installation cost by system size in Louisiana

Are solar panels worth it in Louisiana?

It depends. Solar panels are worth it for many Louisiana homeowners. But it doesn't work out for everyone. If you live in a more remote or shaded area — or if your energy consumption is really low — the upfront costs might not outweigh your savings over time.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Louisiana's power rates are below average, but the state's energy consumption is also above average. Higher energy consumption means you need larger solar installations, which increases your overall costs.

Financially, it makes sense if what you pay for the panels each month is cheaper than your current electric bill and the panels generate most or all of your energy needs. It's best to evaluate your situation and compare a few quotes from reputable solar installers to see if solar panels are worth considering.

On average, Louisiana homeowners with solar panels avoid $54,636 in total utility costs over 25 years. Plus, your monthly energy costs are predictably low and don’t go up when utility companies raise their rates.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Louisiana

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. You’ll hear installers talk about how “efficient” their panels are.

Solar panel efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, lifespan, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a standalone system for $80 to $400.

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before you go solar.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can. 

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the DIY route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

» GREENEST STATES: Louisiana ranked 28th in 2024

How to save money on solar panels in Louisiana

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Louisiana:

• Compare quotes: Get quotes from at least three or four different solar companies in Louisiana. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: In addition to government incentives, some solar panel manufacturers offer rebates on their products. While these may not be specific to Louisiana, they can still provide additional savings.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Louisiana

The federal solar investment tax credit (ITC) is the best financial incentive for going solar in Louisiana. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

Don’t get confused: The ITC is not a rebate or a refund. It is a credit that goes toward what you owe on federal income taxes the year your system becomes operational. Any unused portion of the credit rolls over into future tax years.

The ITC drops to 26% in 2033 and 22% in 2034.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

Additional solar incentives in Louisiana include a statewide 100% ad valorem property tax exemption, so you won’t pay additional property tax for the value added to your home by solar panels and other clean energy equipment.

How can I pay for solar panels in Louisiana?

Affordable financing makes the upfront costs of solar more manageable. For instance, most leases let you start saving from day one with little or no money down.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Louisiana

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in top solar companies in Louisiana.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Louisiana homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Louisiana and other states.

Solar costs vs. savings: Louisiana and nearby states