Louisiana solar panels: The complete guide in 2024

Data updated Jun 11, 2024

Written by: Emily Walker

Interested in going solar? You'll need to install a 12.43 kW solar panel system to cover the average electric bill in Louisiana, which will cost you about $25,529 after the federal tax credit.

Cost for an average system in Louisiana


Out of pocket cost, cash
$36,470
Federal tax credit (30%)
- $10,941
Price post tax credit
$25,529

20-year savings $10,229
Payback period 14 Years
Electricity offset 87%
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As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).

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Going solar in Louisiana

Louisiana’s sunny skies, mild winters, and above-average natural gas prices make it a natural fit for solar panels. Going solar in Louisiana reduces your carbon footprint and your reliance on the utility electric grid. 

Factor in the federal solar tax credit, and Louisianans can cut the cost of solar by thousands of dollars, speeding up your payback period and increasing the value of your investment. 

Here's what you need to know about getting solar panels in the Pelican State.

Cost

How much do solar panels cost in Louisiana?

Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Louisiana homeowner needs a 12.43 kW solar panel system to cover their electricity needs, which comes out to $36,470 before incentives. Prices range from $31,000 to $41,940, but after the federal tax credit, that drops by 30%. 

Over 7,400 Louisiana homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 14.5 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.

There are a few ways to finance your solar panel system so you don't have to provide all that money upfront. 

  • Cash purchase: You'll own the system and pay for it upfront. This provides the best long-term savings. 

  • Solar loan: Allows you to retain ownership of your system, while owing little to no money upfront. Solar loans aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options – private solar loans typically come with higher interest rates or upfront fees.

  • Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These generally provide the lowest savings and generate the most negative press about solar. If you choose this financing option, read the fine print: You can get trapped in them for longer than you'd like.

Solar panels on a house

Incentives

What are the best solar rebates and incentives in Louisiana?

Incentives help bring solar's price tag down considerably in Louisiana. Here are the major ones to know about:

Incentive
Average savings in Louisiana
Description

Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC)

$10,941

Lowers your solar panel system's cost by 30%

Louisiana solar property tax exemption

0.51% of your system’s cost, annually on average

If you use solar energy as a source of power, you won't need to pay for the value your solar panels add to your property

Is net metering available in Louisiana?

Louisiana doesn’t offer net metering, but if you connect your solar panel system to the grid, you can benefit from net billing. The catch is that the utility companies only offer partial credit for every kWh you send to the grid—you’re selling the electricity to them at a significant discount, compared to what they’ll charge you to buy that electricity back later. 

Learn more about Louisiana’s net billing program or see utility specifics below:

A house with rooftop solar panels connected to the grid

Equipment

Equipment quality

Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2024, the most popular solar panels can produce about 400 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.  

You should also make sure to select a solar inverter setup that makes sense for your roof’s layout. 

And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter. 

Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output further into the future. 

See our list of the best solar panels

Companies

Who are the best solar installers in Louisiana?

We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Louisiana:

resources

Top solar resources for Louisiana

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