Find out if solar panels are right for your home in Louisiana.
Louisiana and solar, while maybe not moving as fast as other states, every step towards a greener future makes a difference.
The state ranks 38th in solar for the nation, but we don’t blame them for it. The state has an abundance of crude oil and natural gas, being located on the Mississippi River. Louisiana’s 15 oil refineries account for nearly one-sixth of the nation's refining capacity and can process about 2.9 million barrels of crude oil per day!
Just because oil and gas are abundant, doesn’t mean solar doesn’t make sense.There are still available incentives for solar and there are plenty of sunny days!
Some noteworthy solar projects include New Orleans' largest 1MW solar array and the Mall of Louisiana's 1.2MW rooftop solar system.
Plus, New Orleans is estimated to have over 90% of its roofs capable of solar energy production.
With over 20GW of untapped rooftop solar potential, Louisiana presents a landscape of opportunities in harnessing the sun's power.
The average price for a home solar panel system in Louisiana is $19,020 for a 6kW system or about $3.17 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Louisiana | $3.17 | |||
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $8,785 | |
| 6 kW | $10,542 | |
| 7 kW | $12,299 | |
| 8 kW | $14,056 | |
| 10 kW | $17,570 |
Remember, the decision to go solar is a personal one and depends on your specific circumstances and goals. While solar energy offers many benefits, it's important to consider both sides of the coin before making a decision.
In Louisiana, the unique climate and state policies play a significant role in shaping the advantages and challenges of solar viability.
Our goal is to present the most common pros and cons and let you make your own choice.
Overall, solar in Louisiana should be considered by homeowners. However, it truly depends on the individual, their home, and financial capabilities.
The decision to invest in solar energy is increasingly compelling, despite some limitations. The state's net metering policy, which allows homeowners to receive credit for excess energy fed back into the grid, is a significant draw. Most importantly, Louisiana does have an abundance of sunshine.
What makes solar a more challenging decision is still the high initial cost and lower incentives compared to other states when you compare to other states.
In essence, while Louisiana's solar market may not be the most lucrative in the nation, it offers enough advantages to make solar a worthwhile consideration for homeowners focused on long-term benefits and ecological responsibility.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Louisiana. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
And don’t forget! On top of the 30% Federal Solar Tax Credit, you might also find some local incentives to help cut down the cost of getting your own system. These incentives can vary. Some are available statewide, while others are specific to your city or utility company. They could save you a decent chunk of change.
We've listed the known incentives for Louisiana in the table below. But remember, this isn't an exhaustive list. It's always a good idea to check with your local utility company for any additional incentives that might be available.
| Name | State | Category | Type |
|---|---|---|---|
| Alternative Vehicle Conversion Credits - Personal | LA | Financial Incentive | Personal Tax Credit |
| Solar Energy Equipment Certification | LA | Regulatory Policy | Equipment Certification |
| Solar Energy System Exemption | LA | Financial Incentive | Property Tax Incentive |
| Net Metering | LA | Regulatory Policy | Net Metering |
| Interconnection Guidelines | LA | Regulatory Policy | Interconnection |
| Home Energy Loan Program (HELP) | LA | Financial Incentive | Loan Program |
| Cogeneration Sales Tax Exemption | LA | Financial Incentive | Sales Tax Incentive |
| Cleco Power - Power Miser New Home Program | LA | Financial Incentive | Utility Rate Discount |
| Building Energy Code | LA | Regulatory Policy | Building Energy Code |
| DEMCO - Touchstone Energy Home Program | LA | Financial Incentive | Rebate Program |
There are hundreds of solar companies in Louisiana. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Louisiana is making big moves in renewable energy. They're setting up solar-powered hubs all over the state, called “lighthouses”. This is a big deal for electricity resilience and using renewable energy. The main part of this effort is the Community Lighthouse project that started because of the problems Hurricane Ida caused. The idea is to be solar power ready for emergencies and storms.The group has been installing solar power with battery storage systems at centralized locations such as churches, health clinics, and community centers in underserved neighborhoods.
One key spot for this project is the New Wine Christian Fellowship in LaPlace. U.S. Energy Secretary Jennifer Granholm kicked off this project and announced how big of a step this is for Louisiana in fighting climate change and making energy more secure. The goal is to have a solar-powered spot close to everyone in the city. They already finished six places in New Orleans, and New Wine is the first one outside the city.
The article explains:
“Unlike typical backup generators that aren’t designed for continuous use over several days and rely on fuel that is often unavailable during disasters, the solar-powered lighthouses can provide electricity virtually indefinitely. The load management systems allow the lighthouses to disconnect from the main power grid and go into backup mode, so users can regulate power to non-essential devices on cloudy days and ensure the batteries maintain adequate charge levels for nighttime use.”
The Community Lighthouse project is leading the way in electricity resilience. It's also helping to cut down electricity costs and support people when disasters happen. They're planning to bring this project to more places in Louisiana, like Caddo Parish and Baton Rouge.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Louisiana decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Louisiana can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Louisiana is $19,020 for a 6kW system or about or about $3.17 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
Considering batteries alongside your solar system is a smart move. Batteries store excess solar energy, ensuring power availability during outages or when the sun isn't shining. This enhances energy independence and maximizes your solar investment. In areas with variable weather or high electricity rates, batteries can significantly boost savings and provide peace of mind. It's an investment in reliability and efficiency, making your solar system more versatile and effective.
Most solar panels come with a 25 to 30-year performance warranty, which guarantees a certain level of electricity production. This is also their expected life span but can continue to generate power beyond 30 years. Make sure to read the fine print to understand what's covered and what's not. Some warranties might only cover specific parts of the solar system, like the inverter or the panels themselves.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Some homeowner's insurance policies will cover solar panels, but it's best to double-check. You may need to add a separate rider or even choose a different insurance provider to ensure your investment is protected.
