Man installing solar panels on rooftop

Louisiana Solar Incentives: Tax Credits & Rebates Guide (2022)

By Britt Olizarowicz

Solar panels in Louisiana will make your home more energy efficient and decrease the amount of money you spend on electricity. This can be a big home improvement project and can cost tens of thousands of dollars. The good news is there are some great incentives for Louisiana homeowners. If you are looking for all of the best Louisiana solar incentives, our guide will provide the following:

There is no state rebate or incentive from Louisiana, but there are local programs in areas like New Orleans that encourage homeowners to consider energy efficiency in all that they do.

Why Go Solar in Louisiana?

Louisiana currently ranks 38th in the nation according to SEIA for being solar-friendly. The state has moved up a few spots since 2021, where it sat at 41. Hopefully, the state of Louisiana is moving in a positive direction, but it is still not known for its renewable energy affordability. In fact, solar panel installation can be quite expensive in Louisiana.

However, many people still find that it is worth it for both your budget and your personal beliefs about renewable energy sources to go solar in Louisiana. Being able to rely on the grid less and less is a feeling that many homeowners find to be freeing. Of course, this process has an initial cost, but according to DSIRE, some loan programs work pretty well for Louisiana homeowners.

Louisiana Solar Cost

Louisiana solar costs are about average ranging from $20,000 to $34,000 for a whole home system. The costs for a homeowner’s photovoltaic or solar system will vary depending on the amount of energy required to keep a home up and running.

When looking at the total costs of a Louisiana solar project, it’s essential to consider both the upfront costs and the credits, incentives, and rebates you are eligible for long term.

Sold on Solar for your home? Get a free quote from local solar installers.

Solar system on house rooftop

Interested in solar energy but not sure where to start?

Get free quotes from House Method approved solar installers

Get a Free Quote

How Much Can You Save on Solar in Louisiana?

There is no state tax credit in Louisiana, making it difficult to save a large portion of your solar costs. The good news is that you will be able to save a good amount on low interest home improvement loans offered in the state. Expect to save $5,000 or more upfront from the federal rebate for solar installation and then a few thousand more through the years for net metering or zero-interest loans.

The Best Solar Incentives, Tax Credits, & Rebates in Louisiana

The best solar incentive in the state of Louisiana is the Federal Solar Investment Tax Credit (ITC). This program is available all over the nation, but it won’t be in place forever. Homeowners in Louisiana also need to consider how they can benefit from net metering offered by providers as well as zero-interest loans that require almost no money down to install a solar panel system.

Incentive Summary End Date
Federal Solar Tax Credit (ITC) Louisiana residents can take advantage of the Federal Solar Tax Credit and get a discount of up to 26% applied to their tax returns. If you purchase $20,000 worth of solar panels, you can get a credit for more than $5,000 on your next tax return. Remember, this does require you to come out of pocket first. December 31st, 2023
Net Metering Net metering allows homeowners that create excess energy to use it as a credit on their next electric bill. Net metering in Louisiana is a strong program allowing people the retail rates of electricity when they bank excess. None
HELP Financing Homeowners can receive up to $12,000 in low interest financing for their solar installation in the state of Louisiana. Part of this is funded by the DNR. None
Property Tax Exemption The state of Louisiana does not increase property taxes for those that have a solar panel installation. This can save thousands in property taxes through the years. None

Federal Solar Investment Tax Credit (ITC)

The Federal Solar Investment Tax credit is available in all 50 states, Louisiana included. This program will discount your next federal tax return for installing a home solar system. The system is the best option for those looking to save a large chunk on solar installation.

The problem with the ITC is that it is set to expire at the end of 2023. In fact, the rates will go down from 26% to 22% in 2023, making it the perfect time for a taxpayer to invest in a solar panel system for their Louisiana home.

Although you will have to pay upfront for your solar installation, the credit will come back to you and ensure that you do not have to pay as much for taxes as the years the system is installed. When you combine this with a home energy loan program, you can always apply your rebate to the loan and have much less of a financial burden for this installation.

Louisiana Solar Energy Tax Credit

Louisiana, unfortunately, does not have a solar energy tax credit or rebate. Some states offer a program like this, but Louisana residents will not get this benefit. The good news is that these programs can change at any time, so make sure that you stay up to date with all that is happening in Louisiana.

Louisiana Solar Sales Tax Exemption

Louisiana requires you to pay sales tax on purchasing your solar panel system. Louisiana residents pay 4.45% for tax on the sale of an item, so be prepared to add this to your cost when estimating a new home solar panel system.

Louisiana Solar Property Tax Exemption

When installing a solar system, you can expect that the value of your home is going to go up. This, in turn, will end up impacting your property taxes and making it more challenging to afford the solar panels long term. Luckily Lousiana has put into place a solar property tax exemption that allows your taxes to remain the same after installing your solar panel system. This can save thousands of dollars through the years.

Louisiana Net Metering

Net metering is the process of banking some of the excess energy that you create and having the utility company give it back to you at a reduced rate when you need it. The net metering process is not mandatory for utility companies in Louisiana, and this can impact the amount of money that homeowners can save.

Sometimes on a rainy day, you may struggle to have the energy to run your air conditioner or your washing machine. Luckily with net metering, it still may not cost you very much to keep your house up and running. Net metering policies will differ depending on the provider, their price per kilowatt hour, and the effectiveness of your solar power system.

This is one of the best incentives long-term and something that should undoubtedly be researched before finalizing any solar systems.

Home Energy Loan Program (HELP)

Although some homeowners would love to benefit from the tax rebate or the net metering incentives, sometimes the initial funds for purchasing a solar or PV system will be the more difficult part of the process. Luckily the Home Energy Loan Program or HELP can make a difference.

Homeowners can receive up to $12,000 on a loan for a solar panel system. The way this loan program works is the Louisiana Department of Natural Resources (DNR) will finance the loan at 2% interest. The other half of the loan is financed at a market rate.

The end result is a very affordable final loan rate, which makes it easier for homeowners across the state to get a loan with very little money down. These loans are five-year loans and will spread out what would otherwise be a very large purchase.

To take advantage of this program and get the adjusted interest rate, you must use an approved lender and start the underwriting process before the installation of the solar panel system.

Commercial Louisiana Solar Incentives

Some states have better commercial incentives for solar power than residential. In Louisiana, this is really not the case. Most of the commercial credits will come from the federal government, leaving the commercial property owners with very few incentives.

Solar Incentives for Nonprofits and Businesses in Louisiana

There are no specific solar incentives in the state of Louisiana for nonprofit organizations. The federal savings programs will be the best choice for nonprofits and local governments to consider. Again, as Louisiana works to try and move its way up the list of strong solar states, they may change some of the incentives that they offer.

USDA REAP Grant

The United States Department of Agriculture offers a REAP grant or Rural Energy for America program. With the REAP Grant, agricultural producers can save quite a bit of money on a loan for their solar system. In addition to saving money, there are also financing options that may otherwise not be available through other providers.

Contact the USDA at the start of your solar project and ensure that you are getting the maximum benefit throughout this process.

Federal Solar Tax Credit for Businesses in Louisiana

For a federal corporate income tax return, there is a 30% credit against the cost of any system that was placed into the building. The Federal Solar Tax Credit is the best way for Louisiana state business and property owners to save money, but the program will expire. In the year 2023, you will notice the rate of savings go down to 10%, and in 2024, it is going to expire completely.

As new solar programs are adopted, the rate of savings could change, but it’s best to take advantage of these things while you still can.

Louisiana Commercial Net Metering

The net metering program in Louisiana is not all that strong for Louisiana commercial business owners. The program will have to be worked out with the local utility company, and there is no state legislation forcing this to happen. If you are banking on net metering, it makes sense to first look into the rates and the options available before putting the system into place.

Key Takeaways: The Best Louisiana Solar Incentives

The best Louisiana solar incentives are the Federal programs that are offered. However, the HELP program can also help with overall affordability and the down payment on the solar system. If you are not sure if you can afford this investment, talk with an expert installer and see if there are any local programs that you can take advantage of. Chances are there is something that can be worked out to bring the cost down a little bit.

Louisiana Solar FAQ

Is solar worth it in Louisiana?

Solar in Louisiana is worth it to help you save money and to produce clean energy. Although the upfront costs of solar can be pretty high, they will also help homeowners save money long term. The state of Louisiana will likely continue to become more solar-efficient over time.

How much does it cost for solar panels in Louisiana?

Solar panels in Louisiana are a bit higher than in other states. For many homeowners, the total cost of solar panels will be close to $30,000. Although it can take some very high electricity bills to recoup your money, chances are you can use the rebates and loan programs to get the costs lower than this $30,000 mark.

Can you get solar panels for free in Louisiana?

Solar panels are not offered for free in Louisiana. The closest thing you will get in Louisiana is a significant discount on your federal tax return and a loan with almost no interest and no down payment necessary.

What solar rebates are available in Louisiana?

Currently, the solar rebates in Louisiana include federal rebates only as there is no state rebate program. Keep a close eye on programs to see how they change and if they will expire or expand. The current federal program only has about a year left on it.

How many homes in Louisiana have solar panels?

There are only about 20,000 homes with solar panels in Louisiana. Since the solar electricity rates in Louisiana are continuing to improve and expand, we may see more solar panels in the next year. In addition, people will want to take advantage of the federal programs before they expire.

Do solar panels increase property taxes in Louisiana?

Solar panels will increase property taxes in Louisiana, but luckily there is a program in place that will ensure your taxes do not go up. Even though your home will be worth more, the taxes will remain the same, and you can enjoy all the benefits of solar.

How much can you write off for solar panels on taxes in Louisiana?

The current Federal ITC programs allow a 26% rebate on the total cost of the solar system. This program can save up to $5000 for some homeowners depending on the system’s total cost; this program will go down to a 22% rebate in 2022, so it’s important to keep a close eye on these costs.

House Method’s Solar Companies Rating Methodology

At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.

Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated all of each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all of the solar energy companies on the market so you can have the information you need to make the best choice for your home.

We developed a formula to objectively determine the best solar energy companies and give each a score out of 100 based on the following criteria:

Plan Options (30): Do they provide a variety of plan options? We looked at the number of plans each solar energy company offered and the flexibility of adjusting the plan.

Services offered (20): How many services are offered in each plan? We looked at whether the company manufactures its own solar panels, whether it contracts out installation, and what additional products each company offers.

Trust (10): What do customers say after their solar panels are installed? Does this company offer a guarantee? We considered how satisfied customers are post-service if the company does what it says it will, BBB accreditation, and service guarantees.

Prices (10): How reasonable are the costs of the plan or service in comparison to the industry average? We compared the costs of each company to competitors that offer the same solar energy services.

Unique perks (10): Does the company offer discounts or special services such as financial incentives, rebates, or a useful mobile app? We looked for extras each company offers that set them apart from the competition.

Customer Service (10): How is the customer experience when contacting the company? We considered the speed of response, weekend/holiday availability, and ease of communication through phone calls, email, and online chat functions.

Nationwide availability (10): How many states does the company offer its services? Companies that operate nationally and in all zip codes are favored over those with limited availability.

More on Solar from House Method

Man installing solar panels on rooftop
Solar

Kentucky Solar Incentives: Tax Credits & Rebates Guide (2022)

If you live in Kentucky and worry about rising energy costs, now is the time to buy a solar energy system. Click here to learn about Kentucky solar tax credits and rebates.

Solar

How Much Power Does a Solar Panel Produce?

Different solar panel models produce varying amounts of electricity, making some options better for savings and off-grid living. This article shows you how to calculate a solar panel’s energy output to improve your rooftop solar panel system.

Solar

New Hampshire Solar Incentives: Tax Credits & Rebates Guide (2022)

Are you a New Hampshire resident looking to purchase a new solar energy system? Click here to learn about solar tax credits and rebates in your state.

Solar

Oregon Solar Incentives: Tax Credits & Rebates Guide (2022)

Solar incentives help you save and afford solar power sooner. This guide reviews all the solar incentives for Oregon to help you go solar!

Solar

Idaho Solar Incentives: Tax Credits & Rebates Guide (2022)

Federal and state tax incentives make it easier to go green. Our outline covers all you need to know for solar incentives in Idaho.

Solar

New Jersey Solar Incentives: Tax Credits & Rebates Guide (2022)

Solar incentives can help you afford a solar energy system sooner. This guide provides the top solar incentives for New Jersey to help you get started!

Solar

Michigan Solar Incentives: Tax Credits & Rebates Guide (2022)

Going solar can help you save money and with Michigan solar incentives in place you can save a lot more.

Solar system on house rooftop
Solar

Missouri Solar Incentives: Tax Credits & Rebates Guide (2022)

Are you a resident of Missouri and looking to purchase a new solar energy system? Click here to learn about what solar tax credits and rebates the state of Missouri has to offer.

Solar

Delaware Solar Incentives: Tax Credits & Rebates Guide (2022)

Delaware is starting to go solar. Our guide outlines the best federal and state solar incentives for Delaware to help you save money.