Home > Solar > Louisiana Solar Incentives: Tax Credits & Rebates Guide (2023)

Louisiana Solar Incentives: Tax Credits & Rebates Guide (2023)

Updated Jan 10, 2023

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Updated Jan 10, 2023

Home > Solar > Louisiana Solar Incentives: Tax Credits & Rebates Guide (2023)

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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. Solar panel installation can be quite expensive in Louisiana.

However, many still find it worth their time and money to consider 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 freeing. Of course, this process has an initial cost, but according to DSIRE, some loan programs work well for Louisiana homeowners.

Louisiana Solar Cost

Louisiana solar costs range 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 energy required to keep a home up and running.

When considering 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.

How Much Can You Save on Solar in Louisiana?

Louisiana has no state tax credit, making it difficult to save a large portion of your solar costs. The good news is that you can 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, and Rebates in Louisiana

The best solar incentive in 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 and zero-interest loans that require almost no money to install a solar panel system.

IncentiveSummaryEnd Date 
Federal Solar Tax Credit (ITC)Louisiana residents can take advantage of the Federal Solar Tax Credit and get a discount of 30% applied to their tax returns. If you purchase $20,000 worth of solar panels, you can get a credit for $6,000 on your next tax return. Remember, this does require you to come out of pocket first. December 31st, 2032
Net MeteringNet 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 ITC is set to continue through the end of 2032, with no reduction in the current 30% incentive in that time. 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 Louisiana residents will not get this benefit. The good news is that these programs can change at any time, so make sure that you stay updated 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 your home’s value will go up. This, in turn, will impact your property taxes and make it more challenging to afford the solar panels long term. Luckily Louisiana 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 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, which can impact the amount of money 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 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 long-term incentives that should 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 loan for a solar panel system. This loan program works with the Louisiana Department of Natural Resources (DNR), which will finance the loan at 2% interest. The other half of the loan is financed at a market rate.

The 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 are five-year loans and will spread out what would otherwise be a 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 installing the solar panel system.

Commercial Louisiana Solar Incentives

Some states have better commercial incentives for solar power than residential. In Louisiana, this is 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 for nonprofit organizations in the state of Louisiana. 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 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 on a solar system loan. In addition to saving money, financing options may otherwise not be available through other providers.

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

Federal Solar Tax Credit for Businesses in Louisiana

Non-tax-exempt businesses are eligible for a 30% credit against the cost of any system that was placed onto a commercial building. The Federal Solar Tax Credit is the best way for Louisiana state business and property owners to save money, and has been extended in full through the end of 2032.

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 unfavorable for the state’s 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 look into the rates and options available before implementing the system.

Final Thoughts: The Best Louisiana Solar Incentives

The best Louisiana solar incentives are the Federal programs offered. However, the HELP program can also help with overall affordability and the down payment on the solar system. If you are unsure if you can afford this investment, talk with an expert installer and see if there are any local programs 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 lower costs 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 to 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 30% rebate on the total cost of the solar system. This rebate will be in effect through 2032, with no reduction in potential reimbursement in that time.

House Method’s Solar Ranking and Review 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 each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all 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 various plan options? We looked at the number of plans each solar energy company offered and the flexibility of adjusting the plan.
  • Services (20): How many services are offered in each plan? We looked at whether the company manufactures its solar panels, whether it contracts out installation, and what additional products each company offers.
  • Trust (10): What do customers say after installing solar panels? 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.

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