The Pelican State has several solar incentives and programs to encourage renewable energy adoption. Our guide details Louisiana’s most popular programs designed to help residents offset the cost of solar panel installation. We pull from our in-depth research into the best solar companies to walk you through Louisiana’s loan program, state tax exemption, and more so you can feel confident about your clean energy investment.

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How Much Can You Save With the Federal Solar Tax Credit?

All Louisiana homeowners qualify for the federal solar investment tax credit (ITC) as long as they own their solar panel system. Homeowners can claim a tax credit equal to 30% of the cost of purchasing and installing their system during the next tax year. Any unused amount can continue rolling over to the following tax period until it’s depleted.

You won’t qualify for this credit if you lease your solar panels or choose a power purchase agreement (PPA) because these payment methods don’t make you the system’s owner. Read our guide on the federal solar tax credit for more information.

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Is Net Metering Available in Louisiana?

Net metering is a billing arrangement that assists homeowners in lowering or removing their monthly utility costs. This financial agreement credits solar energy system owners for any excess energy sent to the power grid. Homeowners can use those credits to offset power consumption from their utility company at night or on cloudy days.

Entergy Louisiana offers one of the state’s most established net metering programs. Program stipulations will vary between utility companies, so we recommend you check with your provider about its specific program.

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How Much Do Solar Panels Cost in Louisiana?

The average national cost of solar panels is around $17,640 for a 6-kilowatt (kW) system without solar incentives. Recent EnergySage data notes that Louisiana’s average solar panel installation is higher at around $19,020. Applying the federal solar tax credit results in approximately $5,706 in savings.

How cost-effective your total investment into a solar power system is also depends on your chosen payment method. We’ve detailed each solar financing option below to help you make a more informed decision.

• Cash purchase: Buying your solar panels fully up-front provides the best return on investment (ROI). You own the system without taking on debt or entering a lease, and you can take advantage of all solar incentives.
• Solar loan: This loan lets you borrow money from a bank or credit union to purchase a system. It also allows you to own the panels while spreading out payments over time. Interest rates are typically lower than with credit cards or home equity loans.
• Solar lease: You lease solar panels from a solar company with this option. There are little or no up-front costs, but you don’t own the system and can’t qualify for incentives.
• PPA: A PPA allows you to purchase the power generated by your panels for a fixed rate from the solar installer. However, you don’t own the system and can’t use solar incentives.

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Is Going Solar in Louisiana Worth It?

Going solar is worth it for Louisianans with enough up-front capital and a home that receives ample sunlight. Louisiana generally gets abundant sunlight, making it well-suited for solar power generation. It also has relatively high average electricity prices compared to other states, which currently sit at 9–12 cents per kilowatt-hour (kWh). Solar can shield your electricity bills against the state’s rising utility retail rates.

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Our Conclusion

Going solar in Louisiana is more expensive than in other states, but it still offers incentives to help alleviate solar costs. We’ve covered the most significant incentive programs, but smaller city- or municipality-specific incentives may be worth exploring. We recommend checking DSIRE for more information.

Use our tool below to connect with top home solar installation companies. You should also read our guide on the best solar companies in Louisiana to find a local installer that matches your needs and can help you obtain incentives.

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FAQ About Solar Tax Incentives in Louisiana

Does Louisiana have a solar tax credit?

Louisiana doesn’t have a state-level solar tax credit, but you can use the federal solar tax credit to get 30% back on your installation cost the following tax season.

Is living off the grid illegal in Louisiana?

No, it isn’t illegal to live off-grid in Louisiana. However, you must check with various housing authorities as an off-grid residence must adhere to certain building codes and safety regulations set by the state. 

How many years can you carry over the federal solar tax credit?

You can roll the federal solar tax credit back one year and carry the credit forward for up to five years.

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Our Rating Methodology

We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:

• Solar equipment, installation, and services (25%)
• Warranty and performance guarantees (25%)
• Brand reputation and certifications (15%)
• Financing options (15%)
• Experience (10%)
• Availability (10%)

Total scores are divided by 20 for a final 5-point rating scale.

To share feedback or ask a question about this article, send a note to our Reviews team at [email protected].