State solar guide
Louisiana solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 via Electric Choice electricity-prices-by-state | Research dossier south-central.md June 2026 | EnergySage May 2026 (typical 11.2 kW system at $28,995 pre-incentive, averaging $2.59/W) | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Louisiana eliminated mandatory retail-rate net metering for new customers effective January 1, 2020. The Louisiana Public Service Commission (LPSC) mandates a two-channel billing approach: customers pay retail rates for all electricity they consume, and receive credit at the avoided-cost rate for all electricity they export. Entergy Louisiana's avoided cost is approximately 3 cents per kWh, roughly one quarter of the 12.87 cent retail rate. Entergy New Orleans operates under a separate framework due to a City of New Orleans mandate that preserves full retail-rate net metering for Entergy New Orleans customers. Customers who established an interconnection agreement before December 31, 2019 are grandfathered under the prior full retail net metering policy for a defined term.
Entergy Louisiana (the primary investor-owned utility serving most of the state) credits exports at approximately 3 cents per kWh avoided cost, making grid export financially negligible. Entergy New Orleans is the significant exception: New Orleans city customers still receive full retail-rate net metering under a municipal mandate, which makes solar economics meaningfully better for New Orleans homeowners. Cleco and SLEMCO (electric cooperatives) operate under their own tariffs; verify export terms directly with your co-op.
Program: NM2_avoided_cost. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Louisiana utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Louisiana homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Louisiana Property Tax Exemption for Solar property_tax_exemption | Full solar-added assessed value excluded Louisiana exempts solar installations from property tax assessment increases. The solar-added home value is excluded from residential property tax assessment. | Residential solar installations in Louisiana | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Louisiana
Louisiana has no statewide battery storage incentive or rebate program as of June 2026. No SGIP-equivalent or battery-specific state credit exists. No utility battery rebates identified for Louisiana residential customers. Given the low avoided-cost export rate, battery storage for self-consumption maximization is relevant but must be funded without state or utility support.
Savings example
This example uses real Louisiana market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
System size 11.2 kW at $2.59 per watt (EnergySage May 2026). Annual production estimated at 14,500 to 17,500 kWh based on New Orleans area peak sun hours of 4.8 to 5.4. Entergy New Orleans full retail example: assumes 70% self-consumption at 12.87 cents per kWh retail plus 30% exported at retail rate. Entergy Louisiana customers would see meaningfully longer payback due to 3 cent export rate. Federal residential credit: $0 (expired). Figures are illustrative; your in-home assessment will use your actual utility bills and rate schedule.
Louisiana Entergy New Orleans customer (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Louisiana does not have a statewide residential solar permit fee cap. Permit requirements, fees, and timelines vary by local Authority Having Jurisdiction (AHJ) and parish. Major metro areas (New Orleans, Baton Rouge, Shreveport) typically have permit timelines of 2 to 6 weeks. Utility interconnection with Entergy Louisiana or Entergy New Orleans adds 4 to 8 weeks. Contract to energization typically runs 10 to 16 weeks. Hurricane and flood risk considerations may affect installation complexity and insurance requirements.
Louisiana's coastal location and hurricane exposure are relevant to solar installation design. Structural requirements for high-wind zones may affect permit requirements and system specifications. Verify hurricane wind load requirements with your AHJ and installer.
Commercial solar in Louisiana
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Louisiana business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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