Complete Guide to Solar Energy in Louisiana

Your complete resource for solar energy. Everything you need to know about solar laws, solar costs, solar financing, and solar installation in Louisiana.

$2.67
Cost per Watt
17.4 years
Average Payback Period
216
Sunny Days Per Year
25 kW
Residential System Size Limit

Why Louisiana is Excellent for Solar Energy

Reliable Solar Potential

Louisiana receives 216 sunny days per year, giving homeowners strong solar production potential across much of the state. Long cooling seasons, hot summers, and abundant sun make rooftop solar especially attractive for homes with high daytime electricity use.

Competitive Long-Term Savings

Residential electricity prices in Louisiana reached 12.46¢/kWh, and current market data shows homeowners can save about $12,066 over 25 years. Even without major state rebate programs, solar can still provide predictable long-term savings in a state with heavy air-conditioning demand.

Valuable Property Tax Protection

Louisiana provides an ad valorem property tax exemption for residential solar energy systems, which helps homeowners avoid higher property taxes on the added value of a solar installation. That tax treatment remains one of the most important state-level benefits for residential solar in Louisiana.

Clear Distributed Generation Rules

Louisiana no longer uses traditional retail-rate net metering for most newer systems. Under the Louisiana Public Service Commission’s 2019 order, customers who installed or applied after December 31, 2019 pay full retail for electricity purchased from the utility, pay zero for self-consumed solar energy, and receive avoided-cost compensation for exported electricity. That makes self-consumption and system sizing especially important.

Quick Solar Facts

Average System Size: 11.73 kW
Example Annual Generation: 7,273 kWh
25-Year Savings: $12,066
Typical Payback: 17.4 years
System Lifespan: 25-30 years

Quick Solar Savings Calculator

Important 2026 Updates

Federal Residential Solar Credit Has Ended

The Residential Clean Energy Credit is no longer available for expenditures made after December 31, 2025. For Louisiana homeowners, that means new residential solar projects in 2026 need to be evaluated based on electricity savings, property tax treatment, and export compensation rather than the former federal 30% credit.

Calculate your savings | Louisiana Solar Cost Overview

Avoided-Cost Export Credits Remain the Key Rule

For newer Louisiana distributed generation customers, exported electricity is credited at avoided cost rather than full retail value. Under the LPSC General Order, self-generated electricity used directly in the home remains the most valuable part of a residential solar system, so load matching and storage are more important than in full retail net-metering states.

Louisiana Public Service Commission

Louisiana Solar Laws & Regulations

Distributed Generation Framework

Louisiana’s residential solar market is shaped more by distributed-generation rules and property tax treatment than by large rebate programs. The federal residential credit has expired for new post-2025 projects, so system economics now depend more heavily on electricity savings and export-credit structure.

IRS Tax Credit Details

Property Tax Exemption

Louisiana provides a residential solar property tax exemption, helping homeowners avoid ad valorem tax increases tied to qualifying solar installations. The state has also adopted solar rights legislation intended to limit unreasonable restrictions on solar energy systems.

Louisiana Solar Rights & Tax Treatment

Distributed Generation Compensation Rules

Current residential distributed generation policy is governed by the Louisiana Public Service Commission. For most newer systems, imported power is billed at full retail rates, self-consumed solar power is effectively valued at the full avoided purchase price, and exported power is credited at avoided cost.

Louisiana Net Billing Rules