Solar in Louisiana: market, incentives and net billing reality

Market snapshot

Solar in Louisiana by the numbers

Installed capacity

1,400 MW

Homes powered

180K

Solar share of electricity

3%

Solar jobs in state

1,600

Typical cost per watt

$2.60

US ranking

#23

Louisiana's residential solar market peaked in 2015 (when the state tax credit was still in effect) and has grown more slowly since. The 2019 shift from retail net metering to net billing further slowed growth. The federal 30 percent tax credit remains the dominant incentive, and recent utility rate increases have improved the pure-electricity-savings case.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in Louisiana

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, Louisiana has these state and local programmes.

No state solar tax credit

Louisiana's generous state solar tax credit (originally 50 percent, capped at $12,500) was fully phased out by 2015. No replacement credit has been enacted. The only tax-based incentive currently is the 30 percent federal Residential Clean Energy Credit.

Sales-tax exemption on solar equipment

Residential solar PV equipment is exempt from Louisiana's 4.45 percent state sales tax under the renewable energy equipment exemption. Local sales taxes may still apply.

No statewide property-tax exemption

Louisiana does not have a statewide property-tax exemption for residential solar. Treatment varies by parish; some include the added value in assessment, others do not. Check with the local parish tax assessor.

Net metering grandfathering

Residential customers who installed solar before the 2019 shift are grandfathered on retail-rate net metering for 15 years from their original installation date. New systems do not qualify.

Permits and interconnection

Permits and interconnection

Permit timelines in Louisiana vary by parish. New Orleans, Baton Rouge and Lafayette commonly take 3 to 6 weeks for residential. Rural parishes can be faster or slower. SolarAPP+ adoption is minimal. Interconnection with Entergy and Cleco typically runs 4 to 8 weeks post-install.

Running a solar company here

Running a solar company in Louisiana

Running a solar company in Louisiana means operating in a market that has shrunk since the mid-2010s and depends heavily on the federal tax credit for payback. The installers who remain tend to specialise in homes with high electric usage (electric heat pumps, pool pumps) where the pure-electricity-savings case still works despite net billing. Hurricane season affects both scheduling and demand for backup storage. Lead costs on Google Search are low ($70 to $120 range) because competition has thinned since 2015.

Questions people ask

Solar in Louisiana: FAQ

Does Louisiana have net metering?

Not for new customers since 2019. Residential solar exports at Entergy Louisiana and Cleco are credited at the utility's avoided-cost rate (typically $0.03 to $0.05 per kWh), lower than the retail rate. Pre-2019 customers are grandfathered on retail NEM for 15 years from original installation.

How much does solar cost in Louisiana?

Residential solar in Louisiana averages around $2.60 per watt installed, meaning a typical 7 kW system costs about $18,000 gross. After the 30 percent federal tax credit, net cost is around $12,600. Louisiana does not have a state solar tax credit.

Is solar worth it in Louisiana?

Yes for Louisiana homes with high electric usage, but payback is longer than peer Sun Belt states due to net billing and the absence of state incentives: typically 11 to 15 years for residential installations with the federal tax credit. Homes with electric heat pumps, pool pumps or large square footage see shorter payback.

Does Louisiana still have a state solar tax credit?

No. Louisiana's generous state tax credit (originally 50 percent, capped at $12,500) was fully phased out by 2015 and has not been replaced. The 30 percent federal Residential Clean Energy Credit remains the only tax-based incentive.