Louisiana Solar Incentives, Cost & Policy (2026)
Written by Aditya Patil · Last updated 2026-09-24
Thinking about adding solar panels to your home in Louisiana? Since the state phased out retail net metering, maximizing how much solar power you use directly at home—rather than sending it back to the grid—is the key to getting a solid return on your investment.
$184
Avg. monthly bill
13.49¢/kWh
Avg. rate
11.2 kW
Est. system size
100% offset
System sizing and usage in Louisiana
Louisiana residents use significantly more electricity than the national average, largely due to air conditioning demands during the long, hot summers. The average household consumes about 1,365.5 kWh per month (roughly 16,386 kWh annually).
To offset 100% of that usage based on Louisiana's average sunlight of 4.65 peak sun hours per day, a typical home would need a solar array sized at approximately 11.17 kW. This is fairly large compared to typical residential installations in other states.
Note: State-level solar pricing data for Louisiana is currently unavailable in the Lawrence Berkeley National Laboratory (LBNL) Tracking the Sun dataset. Check with local installers for the most accurate quote.
Net metering and export rules
The Louisiana Public Service Commission (LPSC) sets the rules for how solar owners are compensated for surplus energy they send back to the grid. In Louisiana, true 1:1 net metering ended in 2019.
For any system installed on or after January 1, 2020, you pay the full retail rate for the electricity you purchase from your utility. However, any surplus solar power you generate and export to the grid is only credited at the utility's avoided-cost rate. This rate fluctuates but generally sits between 3.5 and 4 cents per kWh—a fraction of the roughly 13.49 cents per kWh retail rate.
| Policy | Avoided Cost |
| Effective for new applications | January 1, 2020 |
| Export valued by | Prior year's 12-month average Locational Marginal Price (LMP) |
| Export rate | ~$0.0358 to $0.0399 per kWh depending on utility |
| Grandfathering | Systems interconnected by Dec 31, 2019 keep retail net metering until Dec 31, 2034 |
For systems interconnected on or after January 1, 2020, exported energy is credited at each utility's avoided-cost rate, defined by the LPSC as the prior calendar year's 12-month average Locational Marginal Price (LMP) in the utility's regional grid-operator market (MISO or SPP), recalculated annually by each utility. Per the LPSC's 2026 Avoided Cost Rate schedule, rates range from about $0.0358 to $0.0399 per kWh depending on utility, e.g., Entergy Louisiana, LLC: $0.0386407/kWh effective April 1, 2026; Cleco Power, LLC: $0.03854/kWh effective March 1, 2026; Southwestern Electric Power Company (SWEPCO): $0.03656/kWh effective April 1, 2026. This avoided-cost rate is well below full retail electricity rates, since Louisiana no longer offers 1:1 retail net metering to newly interconnected systems.
Incentives & rebates
Louisiana previously offered one of the most generous state solar tax credits in the country, but that program has been fully closed for nearly a decade.
| Program | Details | Status |
|---|---|---|
| Solar Energy Systems Tax Credit (R.S. 47:6030) | Closed program. Provided up to 50% of system cost for purchased residential solar energy systems, subject to a statewide annual credit cap under Act 131 of 2015 ($10 million for FY2015-16, $10 million for FY2016-17, $5 million for FY2017-18). Act 413 of 2017 allowed taxpayers whose claims were denied due to the cap to still be paid, in three equal installments over fiscal years 2017-2018 through 2019-2020 (with any remainder paid in FY2020-2021), subject to a further $5 million/year cap. | closed |
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Entergy Louisiana LLC | 11.05¢/kWh | 957,522 |
| Cleco Power LLC | 12.33¢/kWh | 251,927 |
| Southwestern Electric Power Co | 13.46¢/kWh | 207,011 |
Estimate your own numbers
Since local usage and utility rules vary, calculating personalized savings is crucial. Use the solar calculator with your own usage and any quote you've received.
FAQ
Does Louisiana have a state tax credit for solar?
Not anymore. The Louisiana Solar Energy Systems Tax Credit, which used to cover up to 50% of the cost of a residential solar system, stopped accepting new applicants and fully closed for systems installed after December 31, 2015.
Does Louisiana have 1:1 net metering?
No, 1:1 retail net metering ended for new solar customers in Louisiana on December 31, 2019. If you go solar today, you will be credited at the utility's avoided-cost rate for the energy you send to the grid. This rate is usually around 3.5 to 4 cents per kWh, which is significantly lower than the 13.49¢/kWh average retail rate you pay for electricity.
What size solar system do I need in Louisiana?
Based on Louisiana's high average electricity usage of 1,365.5 kWh per month, a typical home would need a system size of roughly 11.17 kW to offset 100% of its annual electricity needs. Keep in mind that with current avoided-cost export rates, a battery may be a better investment to self-consume your solar power rather than exporting it.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil