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Last updated: May 2026
Avg. sun hours/day
4.7 hrs
Avg. electricity rate
$0.12/kWh
Active incentives
1
Louisiana Constitution Article VII §21(B)(15) and RS §47:1707 exempt residential solar energy property from ad valorem (property) tax assessment.
Louisiana provides a state-mandated property tax exemption for residential solar energy systems under the Louisiana Constitution Article VII §21(B)(15) and Revised Statutes §47:1707. The exemption applies automatically when the parish (county) assessor evaluates residential property — the value added by the solar PV installation is excluded from the taxable assessed value. For a $24,000 residential system contributing approximately $17,000 to home market value, this saves roughly $130-$180 per year in property tax depending on the parish's effective millage rate. The exemption is one of the few remaining state-level supports for Louisiana residential solar after the 2017 tax credit sunset and 2019 net billing reform.
Louisiana Public Service Commission Order 4 (2019) phased out 1:1 net metering for new customers. New residential prosumers receive net billing with exports compensated at the utility's avoided cost — typically 50–65% of retail.
Louisiana Public Service Commission (LPSC) General Order R-31417 (2019) restructured the state's net metering regime. Customers who interconnected before specific 2019 utility-by-utility cutoffs retain 1:1 retail-rate net metering for 20 years (grandfathered). New residential systems operate under net billing with exports compensated at the utility's locational avoided cost rate plus a small premium — typically translating to $0.06-$0.08/kWh against residential retail of $0.11-$0.13/kWh. Entergy Louisiana, Cleco, and SWEPCO all comply with the LPSC framework. New Orleans is regulated separately by the New Orleans City Council, which preserved more favourable terms within Entergy New Orleans territory.
Louisiana's 50% solar energy tax credit (capped at $12,500) closed to new applicants on June 30, 2017 under Act 131. New residential installations receive no state PIT credit. Combined with the federal Section 25D ITC expiring 2026-01-01, Louisiana residential solar receives no direct subsidy as of 2026.
Louisiana's once-generous Solar Energy Systems Tax Credit (LA RS §47:6030) provided a 50% state PIT credit on residential solar PV installations, capped at $12,500. The credit was popular through the 2010s and drove a meaningful Louisiana residential solar market. Act 131 of 2015 capped the programme; June 30, 2017 was the final filing deadline for new claims. As of 2026, there is no Louisiana state-level PIT credit for new solar installations. Combined with the federal Section 25D credit expiring 2026-01-01 and the 2019 net billing reform, Louisiana residential solar economics are materially weaker than they were 2014–2017.
Our calculator uses Louisiana's actual sun hours (4.7 hrs/day) and electricity rates.
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