The solar incenvice in Louisiana 2025

Updated Apr 04, 2025

You'll pay an average of $12,567 to install a 5 kilowatt solar panel system in Louisiana, before incentives.
The federal investment tax credit (ITC) lowers that price by 30% of all your solar equipment and installation costs.

What solar incentives are available in Louisiana?

As a homeowner in Louisiana, you have access to several different tax incentives that make solar panels more affordable. Solar incentives are available at both the federal and state levels to help you save thousands on your investment in solar energy.

Solar Calculator is here to help you take the next step in your transition to renewable energy. Below, we’ll discuss some of the different ways you can make solar more affordable.

Federal Investment Tax Credit

The Federal ITC allows you to claim 30% of your total equipment and installation costs on your federal taxes. There is no minimum or maximum amount you can claim and it includes equipment, installation, permitting, and even battery storage.

The ITC will remain at 30% until December 31, 2032. After that it will be reduced to 26% until December 31, 2033, then to 22% the following year. The ITC is currently set to disappear in 2035 unless it is renewed.

Who is eligible for the Federal ITC?

Most homeowners will qualify for the Federal ITC, but not all. You must meet the following criteria to claim your 30% tax credit:

Your solar system must have been installed between January 1, 2017 and December 31, 2034.

You must own the property on which the system was installed. That means no leased properties such as apartments or townhomes.

The property must be located within the U.S

You must own the entire solar system. Equipment acquired through a lease or Power Purchase Agree (PPA) is not eligible.

The equipment must be purchased new. Used equipment is not eligible.

The Federal ITC will also cover the following expenses:

Solar panels and cells

Wiring, inverters, and mounting equipment

Cost of labor

Energy storage devices

Sales tax

Homeowners save around $10,000 on average with the Federal ITC. But that number can be higher or lower depending on your total expenses.

Local solar incentives

Who’s eligible : State Government

How to apply : Louisiana enacted legislation (SB 240) in July 2007 which required energy efficiency measures to be incorporated in the construction and renovation of major facility projects funded by the state. Each major facility project must be designed, constructed, and certified to exceed the requirements of the state energy code by at least 30 percent. Such improvements must also prove to be cost effective based on a life cycle cost analysis with a payback of no more than 30 years. Until December 31, 2009, this requirement applied to all new projects larger than 15,000 gross square feet. Size requirements for future projects required to meet the standard are applied as follows: From January 1, 2010 through December 31, 2010 -- projects larger than 10,000 square feet From January 1, 2011 and thereafter -- projects larger than 5,000 square feet The standard also applies to major renovation projects which involve more than 50 percent of the replacement value of the facility or a change in occupancy. The legislation also instructs the Office of Facility Planning and Control of the Division of Administration to adopt rules which increase the demand for building and construction materials made in Louisiana, reduce potable water usage in state-funded buildings, and encourage state building projects to achieve ENERGY STAR designation. Additionally, Executive Order BJ 2008-8 required the Division of Administration, in consultation with state agencies, to set energy efficiency goals for state facilities, office buildings or complexes for Fiscal Years 2009, 2010 and 2011 by July 30, 2008. It also required the Division of Administration to review its purchasing practices to ensure 100 percent compliance with existing state requirements related to energy conservation, to adopt best energy purchasing practices and to develop or increase standards for such products as appliances, light bulbs, smart chargers, and computers using Energy Star as a minimum standard. History The EmPower Louisiana State Buildings - Lead by Example Program used funding from The American Recovery and Reinvestment Act of 2009 (ARRA) to fund energy efficiency improvements on state buildings. There was a total of $25.7 million available for improvements.

Who’s eligible : Installers/Contractors

How to apply : NOTE: SB 447 requires that by February 1, 2015 licensed contractors must be in compliance with the Louisiana State Board of Licensing to legally install solar panels. Contractors without solar PV Installer or Solar Heating Installer certifications issued the North American Board of Certified Energy Practitioners (NABCEP) will at a minimum be required to take a written exam to demonstrate competency. In June of 2014, SB 447 mandated that the Louisiana State Licensing Board for Contractors develop new rules for solar contractors no later than January 1, 2015. Licensed contractors must be in compliance with the new rules no later than February 1, 2015. Contractors applying for the classification of Solar Energy Equipment must have a major classification for Building Construction, Electrical, Mechanical, or Residential Building Contractor in addition to other licenses and must complete a board approved training course in solar energy systems design. A license is required for projects with expenses of $10,000. Contractors who did not hold a license with one of the classifications of Building Construction, Electrical, or Mechanical as of August 1, 2014, must take an examination approved by the Board or hold the PV Installer Certification Energy Practitioners (NABCEP) in order to obtain the Solar Energy Equipment classification. All solar energy installations must be performed by a contractor duly licensed by and in good standing with the Louisiana Contractors Licensing Board with a classification of "Solar Energy Equipment" and a certificate of training in the design and installation of solar energy systems from an industry recognized training entity, or a Louisiana technical college, or the owner of the residence. Installers must have the appropriate license, as well as this specialty classification in order for systems to take advantage of state tax credits. Installers must be licensed with the Louisiana Contractors Licensing Board. This specialty classification does not substitute for an electrical or mechanical license; installers must have this specialty classification in addition to an electrical contractor's license (for solar photovoltaic installations) or a mechanical contractor's license (for solar thermal installations). Additional contractor-specific information can be found here.

Who’s eligible : Commercial, Industrial, Residential, Agricultural

How to apply : The Louisiana Public Service Commission (PSC) adopted rules for net metering and interconnection in November 2005. Louisiana's rules, based on those in place in Arkansas, require publicly-owned utilities and rural electric cooperatives to offer net metering to customers with systems that generate electricity using solar, wind, hydropower, geothermal or biomass resources.* Fuel cells and microturbines that generate electricity entirely derived from renewable resources are also eligible. The rules apply to residential facilities with a maximum capacity of 25 kilowatts (kW) and commercial systems with a maximum capacity of 300 kW. Utilities must provide customers with a meter capable of measuring the flow of electricity in both directions. Although utilities must pay for the cost of the meter itself, customer-generators must pay a one-time charge to cover the installation cost of the meter. Interconnected systems must meet all safety and performance standards established by local and national electric codes, including the National Electric Code (NEC), the Institute of Electrical and Electronics Engineers (IEEE), the National Electrical Safety Code (NESC), and Underwriters Laboratories (UL). A manual external disconnect switch is required for all interconnected systems. The manual external disconnect switch requirement is waived if the inverter is designed to shut down if utility service is lost, the inverter is warranted by the manufacturer to shut down in this situation, and the inverter has been inspected and tested by utility personnel. Customers seeking to interconnect and net meter must submit an interconnection agreement to a utility 45 days before interconnection. Utilities must use a PSC-approved standard interconnection agreement for interconnected facilities. Customers must pay for "interconnection costs," defined as "the reasonable costs of connection, switching, metering, transmission, distribution, safety provisions and administrative costs incurred by the electric utility directly related to the installation and maintenance of the physical facilities necessary to permit interconnected operations with a net-metering facility, to the extent the costs are in excess of the corresponding costs which the electric utility would have incurred if it had not engaged in interconnected operations, but instead generated an equivalent amount of electric energy itself or purchased an equivalent amount of electric energy or capacity from other sources." Furthermore, following notice and opportunity for public comment, the PSC may authorize a utility to assess customer-generators "a greater fee or customer charge, of any type, if the electric utility's direct costs of interconnection and administration of net metering outweigh the distribution system, environmental and public-policy benefits of allocating the costs among the electric utility's entire customer base." *The PSC regulates investor-owned utilities and electric cooperatives in Louisiana; it does not regulate municipal-owned utilities, and its rules do not apply to municipal utilities. Municipal utilities must develop their programs based on the statute.

Does Louisiana offer tax exemptions?

Energy Standards for Public Buildings

Grant Program

Rebate Program

Property Tax Incentive

Solar/Wind Contractor Licensing

Interconnection

Net Metering

Community Solar Rules

Renewables Portfolio Standard

Utility Rate Discount

Building Energy Code

Solar/Wind Access Policy

Cash payments

Paying cash upfront is easily the simplest and most cost-effective route — if you can afford it. It lets you maximize your total savings by avoiding interest rates and other fees. You also don’t have to worry about making monthly payments. But the downside is you have to spend a lot of cash at once which isn’t an option for everyone.

Pros

No interest payments makes this less expensive in the long term

It provides a higher return on your investment

You hit your break even point faster

You are eligible for tax incentives

Cons

It requires a large initial investment

There is an opportunity cost if you decide to wait and save

You may become cash poor

Financing

Financing solar panels is probably the most common payment method. You get to own the system — as opposed to leasing — but you don’t have to spend all your cash at once. And although you do have to pay interest, you can secure a fairly low interest rate as long you have good credit.

Pros

It doesn’t require a large lump sum

You can space your payments out over time

You are eligible for tax incentives

Cons

It costs more over time

Interest rates may be high

You need good credit

The payback period is longer

It takes longer to break even

Solar leases and PPA agreements

If purchasing solar equipment isn’t an option for you, a lease or a PPA may be worth exploring. This is where you are essentially “renting” the equipment for a fixed rate each month. And although you don’t have ownership of your system, there are other benefits such as maintenance and servicing agreements.

Pros

There is no upfront cost

You are not responsible for maintenance

Contract terms are flexible

Cons

You do not own your solar system

You will not be eligible for tax credits or exemptions

It is a long term commitment

You save less than if you own the system

Rates may increase

Going solar doesn’t have to break the bank

Going solar is becoming more affordable than ever. And thanks to a variety of solar incentives in Louisiana, you can save thousands more on your investment.

Want to get an idea for what it will cost you to go solar? You can use our solar cost calculator to generate a customized estimate instantly. We take into consideration a wide range of criteria including location, electric bill, roof size, and other factors. Try it out today and start planning for your future.

Learn more about solar

Check out some of our latest blog posts below.

The solar incenvice in Louisiana 2025

What solar incentives are available in Louisiana?

Federal solar incentives

Federal Investment Tax Credit

Who is eligible for the Federal ITC?

The Federal ITC will also cover the following expenses:

How to claim the Federal ITC

Local solar incentives

Can you claim multiple tax incentives in Louisiana?

Does Louisiana offer tax exemptions?

Energy Standards for Public Buildings

Grant Program

Rebate Program

Property Tax Incentive

Solar/Wind Contractor Licensing

Interconnection

Net Metering

Community Solar Rules

Renewables Portfolio Standard

Utility Rate Discount

Building Energy Code

Solar/Wind Access Policy

What is the best way to pay for solar?

Cash payments

Pros

Cons

Financing

Pros

Cons

Solar leases and PPA agreements

Pros

Cons

Going solar doesn’t have to break the bank

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