Is solar worth it in Louisiana?
For a typical Louisiana home in 2026, solar is not worth it: about a 17.8-year payback and $7,590 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 17.8 yrs4.9 kW, paying cash
- Electricity price
- 13.0¢per kWh, U.S. 18.0¢
- Solar production
- 1,470kWh per kW per year
- Exports credited at
- ~30%Avoided-cost export credit
The numbers for a typical Louisiana home
| Electricity use | 1,195 kWh a month (Louisiana average) |
|---|---|
| Best-value system | 4.9 kW, producing 7,203 kWh a year (50% of use) |
| Price | $14,035 at about $2.65/W |
| First-year savings | $761 |
| Payback | 17.8 years |
| 25-year net | $7,590 (3.3% a year return) |
| Rate increase assumed | 3.0% a year, from Louisiana's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is cheap: 13.0¢ per kWh, 28% below the U.S. average (18.0¢), so each solar kWh saves less.
- Exported solar is typically credited at about 30% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,470 kWh per kW per year (ranked #13 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Louisiana
Avoided-cost export credit. Outside New Orleans, new solar customers since 2020 are credited for exported power at the utility's avoided cost, about 3.6-4 cents/kWh, versus retail rates of ~11-13 cents. Customers who interconnected before 2020 were grandfathered at retail for 15 years. New Orleans (City Council-regulated) still offers retail net metering.
Exported energy (outflow) credited at the utility's LPSC-filed avoided cost rate; Entergy Louisiana $0.0386407/kWh effective April 1, 2026.
- Netting: instantaneous
- Unused credits: Export credits offset the bill down to the fixed customer charge/minimum bill; leftover credit carries forward month to month (Entergy Louisiana).
- System size limit: 25 kW
- Fixed charges: Standard customer charges; no solar-specific fee known. Commercial cap 300 kW.
- Last major change: LPSC Sept 2019 order (effective Jan 1, 2020) replaced retail net metering with avoided-cost export credit; prior customers grandfathered 15 years (to ~2034).
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Entergy Louisiana | 3.86¢/kWh | Avoided cost $0.0386407/kWh effective 4/1/2026 (LPSC schedule); was $0.0259331 from 4/1/2025 - resets every April. Bill can be reduced only to customer charge/minimum bill; leftover credit carries to next month. |
| Cleco Power | 3.8¢/kWh | LPSC avoided-cost schedule ~3.6-4.0 cents for 2026; exact value not verified. |
| SWEPCO (Louisiana) | 3.8¢/kWh | LPSC avoided-cost schedule; exact value not verified. |
| Entergy New Orleans | ~100% of retail | Regulated by New Orleans City Council; retail net metering reportedly still in place (not verified against Council docs). |
Solar incentives in Louisiana
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Property tax exemption for solar | property tax exemption | Value of solar energy systems excluded from property assessment (La. Const./R.S. 47:1706 as reported). Eligibility: Residential systems | unknown |
Ended programs: State solar tax credit (expired).
What solar costs in Louisiana
A fair cash price is around $2.65 per watt before incentives. For the 4.9 kW system that fits a typical home, expect roughly $11,000 to $15,600; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 35,971
- Share of homes
- 1.6%
- Residential solar capacity
- 209 MW
- Growth over the past year
- -1.8%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Louisiana
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Entergy Louisiana | 961,871 | 12.3¢ | 1,233 kWh/mo | Not worth it |
| Cleco Power | 252,816 | 14.8¢ | 1,245 kWh/mo | Close call |
| SWEPCO | 206,984 | 13.5¢ | 1,104 kWh/mo | Not worth it |
| Entergy New Orleans | 188,385 | 13.7¢ | 1,047 kWh/mo | Worth it |
| Dixie Electric Membership | 111,329 | 14.0¢ | 1,331 kWh/mo | Close call |
| Southwest Louisiana E M C | 109,628 | 12.0¢ | 1,404 kWh/mo | Not worth it |
| City of Lafayette | 60,634 | 11.9¢ | 1,208 kWh/mo | Not worth it |
| Washington-St Tammany E C | 51,187 | 11.5¢ | 1,323 kWh/mo | Not worth it |
| Beauregard Electric Cooperative | 40,452 | 13.6¢ | 1,280 kWh/mo | Not worth it |
| Claiborne Electric Cooperative | 21,354 | 13.8¢ | 1,150 kWh/mo | Not worth it |
| City of Alexandria | 19,425 | 11.5¢ | 1,193 kWh/mo | Not worth it |
| South Louisiana Electric Cooperative Association | 17,335 | 12.7¢ | 1,263 kWh/mo | Not worth it |
| Concordia Electric Cooperative | 11,832 | 13.6¢ | 977 kWh/mo | Not worth it |
| Northeast Louisiana Power Cooperative | 11,593 | 11.6¢ | 1,422 kWh/mo | Not worth it |
| Terrebonne Parish Consol Gov't | 11,403 | 11.1¢ | 1,278 kWh/mo | Not worth it |
| City of Ruston | 10,021 | 5.8¢ | 936 kWh/mo | Not worth it |
| Jefferson Davis Electric Cooperative | 9,366 | 15.4¢ | 1,235 kWh/mo | Close call |
| Panola-Harrison Electric Cooperative | 8,485 | 10.7¢ | 1,231 kWh/mo | Not worth it |
| Pointe Coupee Electric Member | 8,254 | 15.3¢ | 1,203 kWh/mo | Close call |
| City of Natchitoches | 7,196 | 11.0¢ | 1,054 kWh/mo | Not worth it |
Solar by city in Louisiana
- New Orleans12.3-yr payback · Worth it
- Baton Rouge16.3-yr payback · Close call
- Shreveport17.6-yr payback · Not worth it
- Metairie18.4-yr payback · Not worth it
- Lafayette19.1-yr payback · Not worth it
- Lake Charles15.4-yr payback · Close call
- Kenner18.2-yr payback · Not worth it
- Bossier City17.7-yr payback · Not worth it
- Monroe18.8-yr payback · Not worth it
- Alexandria16.4-yr payback · Close call
- Prairieville16.4-yr payback · Close call
- Marrero18.8-yr payback · Not worth it
- Houma18.9-yr payback · Not worth it
- Central16.5-yr payback · Close call
- Slidell16.4-yr payback · Close call
- Laplace18.3-yr payback · Not worth it
- New Iberia15.6-yr payback · Close call
Protect yourself when buying
- Check the license. Louisiana State Licensing Board for Contractors: commercial jobs need a license with solar/electrical classification; residential jobs over $7,500 require a Home Improvement registration or residential license; electrical work requires licensed electrician/contractor. Look up an installer
- Cancellation rights. 3 business days to cancel many home-solicitation sales. Louisiana solar energy system disclosure requirements and contractor licensing (LSLBC) for solar installers. How to cancel
- HOA and solar access. Uncertain/limited: no strong statewide prohibition on HOA solar bans identified; verify.
- Community solar. LPSC adopted community solar rules (2019) but very little operating capacity; effectively not available to most residents.
Questions about solar in Louisiana
Is solar worth it in Louisiana in 2026?
For a typical Louisiana home, solar is not worth it. A 4.9 kW system costing about $14,035 after state incentives saves about $761 in the first year and pays back in about 17.8 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Louisiana?
A reasonable cash price is around $2.65 per watt before incentives, or roughly $11,000 to $15,600 for a 4.9 kW system.
Does Louisiana have net metering?
Outside New Orleans, new solar customers since 2020 are credited for exported power at the utility's avoided cost, about 3.6-4 cents/kWh, versus retail rates of ~11-13 cents. Customers who interconnected before 2020 were grandfathered at retail for 15 years. New Orleans (City Council-regulated) still offers retail net metering.
Is there a solar tax credit in Louisiana?
The 30% federal credit for homeowners ended for systems installed after 2025. Louisiana does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Louisiana?
Louisiana State Licensing Board for Contractors: commercial jobs need a license with solar/electrical classification; residential jobs over $7,500 require a Home Improvement registration or residential license; electrical work requires licensed electrician/contractor.. Look up any installer with the state's license search at https://lslbc.louisiana.gov/contractor-search/.
Policy research current as of October 2026; sources include lpsc.louisiana.gov, lpsc.louisiana.gov, entergylouisiana.com. Electricity data: EIA, through July 2026. Found something out of date? Tell us.