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A solar system and installation costs between $9,000-$16,000 on average in Louisiana. Solar Panel
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
Solar panels cost $2.64 per watt of installed capacity in Louisiana, meaning a 5 kilowatt (kW) system would have an average price tag of $13,200 before you consider solar incentives.
Louisiana has a relatively small solar industry, but the state sees abundant sunshine and is working to add more solar capacity. According to the Solar Energy Industries Association (SEIA), Louisiana had an installed solar capacity of 306 megawatts (MW) by April 2023, enough to power 30,387 homes. But Pelican State leaders voted in a solar project pipeline that will add 3,482 MW over the next five years, growing the state’s solar capacity by more than 1,100%.
We at the MarketWatch Guides team have reviewed the best solar companies nationwide to help you determine installation costs and if solar is right for your home.
The average cost of solar panels in Louisiana is $2.64 per watt, which falls below the national average of $2.85 per watt. The following table gives an overview of estimated costs for photovoltaic (PV) systems in the state before and after incentives like the federal solar tax credit. System sizing ranges from 5 kW to 10 kW, common sizes for residential solar systems.
*Costs are based on market research conducted by the MarketWatch Guides team. Your price may vary depending on project specifications.
The best solar companies offer a free consultation to assess your energy bills and site conditions. A site visit will help a solar professional determine the ideal system size and solar panel layout for your home. The installer will then use the information from the assessment to deliver you a system design and cost estimate.
Factors such as system size, equipment, and local incentives and rebates can impact your total cost when going solar.
If you are interested in learning more about solar system costs, you can use our solar calculator to determine pricing in your area.
The primary factor that determines solar installation costs is system size, which depends on your energy needs. The more energy you use, the bigger the solar system you will need to cover your consumption.
A home solar system with a higher energy output requires more solar panels, which requires more racking equipment, wires and a larger inverter. As a result, prices increase the more material and labor you require. Adding other equipment can also increase your price — a solar battery can add more than $10,000 to your final system cost.
How you pay for your system can also influence costs, regardless of the size. You can save the most money over time by purchasing a system in cash or with a solar loan. Keep in mind that you will have to pay an interest rate on a loan, which will add to your overall cost.
If you are looking to avoid upfront costs, you may opt for a solar lease or power purchase agreement (PPA). However, these financing options result in the least amount of savings over time since you will never own the solar system and cannot claim certain incentives.
Solar customers choose between three types of solar panels:
The brand of solar panel you select can also influence cost. While some companies charge more than others, you can opt for cheaper solar panels to save money.
However, solar panels only represent around 18% of system costs in residential applications, according to a study by the National Renewable Energy Laboratory (NREL). Although your solar panel selection affects total system costs, it’s not the biggest price factor. We recommend speaking with a solar installer to determine which type of solar panel is best for your home.
Louisiana residents who install solar panels may qualify for tax incentives, depending on where they live in the state. Common solar incentives include:
The Investment Tax Credit (ITC) is a nationwide incentive that allows you to claim 30% of your solar system cost on your tax filing after purchasing panels. You can use the credit to decrease what you owe in federal taxes for that year and roll over any remaining amount for up to five years.
Depending on where you live, other Louisiana solar incentives may be available. For example, the state offers a property tax exemption for homeowners who install solar panels. You can check with your solar installer to see if you are eligible for other state or local incentives.
Based on our research, the only incentive Louisiana offers for solar equipment is a property tax exemption. The state once had a favorable net metering policy, but it ended in 2019.
If you’re considering other home energy upgrades along with your solar investment, the Louisiana Department of Natural Resources manages several energy efficiency programs. These programs are not solar incentives but can help reduce the cost of other home upgrades.
Louisiana offers a property tax exemption for home solar systems, meaning you will not get taxed if your home value increases after installing solar panels.
For example, if you own a $300,000 home with a property tax rate of 0.55%, you would pay $1,650 in taxes per year. If a home solar system increases your property value to $320,000, you do not have to pay taxes on the additional $20,000 increase, or $110 in annual taxes. Without the exemption, your annual property tax bill would increase to $1,760.
Net metering is a billing program that allows homeowners to send the excess energy their panels generate back to the power grid in exchange for power bill credits. Net metering doesn’t affect the cost of solar panels directly but rather contributes to your overall electricity savings on return on investment.
Louisiana has an unfavorable net metering policy that offers minimal compensation for excess energy sent to the grid. Louisiana utility companies pay between 3.894 and 6.199 cents per kWh of excess electricity as of 2023. The state’s average electricity rate is 11.69 cents per kWh, so you could receive less than half the retail rate for energy under Louisiana’s net metering policy.
Using your solar energy directly, rather than sending it to the grid, is a better option financially. You can save the full value of each kilowatt-hour of clean energy you use. You may achieve a better return on investment by sizing your solar panel system based on your utility bills to keep excess generation as low as possible. You can also consider using a solar battery to store excess energy for later use.
Our team has thoroughly researched the best solar companies in Louisiana to help you compare installers. If you’re shopping for Louisiana solar panels, we suggest requesting a solar quote from each company on our list, including:
Going solar in Louisiana can be a worthwhile investment if you are looking to offset electricity usage with renewable energy, lower your power bills or achieve energy independence. However, solar is a considerable investment that can result in a payback period of 10 years or more in Louisiana. You can expect to pay around $13,200 for a 5 kW home solar system in Louisiana, but the net price drops to $9,240 after you consider the 30% federal solar tax credit.
Louisiana receives plenty of sunshine, as seen using the Global Solar Atlas. In cities like New Orleans and Baton Rouge, a 5 kW solar power system can generate more than 7,500 kWh of electricity annually. At an electric tariff of 11.69 cents per kWh, you can save up to $877 in annual electricity bills. In this example, your panel payback period would be around 10.5 years.
Solar panels can achieve a shorter payback period in states with more incentives and higher electricity prices. Regardless of your location, the best solar panels can last for decades. Plus, leading solar installers like SunPower and ADT Solar offer 25-year warranties to cover issues with your panels over time.
You can expect to pay $2.64 per watt of installed capacity, or $2,640 per kilowatt in Louisiana. So a 5 kW solar system will cost around $13,200, while a 10 kW system would cost about $26,400. Regardless of system size, you can claim a 30% tax credit from the federal government to lower your cost.
No. As of September 2023, Louisiana has no programs in which the state purchases solar panels for homes. If you want to avoid a cash purchase, you can go solar at $0 upfront cost by choosing a company that offers financing options like a solar loan or lease. However, be mindful of solar scams offering “free” Louisiana solar panels.
According to the EIA Residential Energy Consumption Survey, homes in the southern U.S. size 2,000 to 2,499 square feet have an average electricity consumption of 15,269 kWh per year. Assuming favorable sunshine conditions, you would need 10 kW to 12 kW of solar capacity to generate this electricity output. Using 400-watt (W) solar panels, you would need 25 to 30 panels to reach this capacity.
You can work with a solar installer to determine the correct number of panels to power your home.
No. Louisiana offers a property tax exemption for home solar systems, but no state tax credits. However, Louisiana residents can claim the 30% federal tax credit, a nationwide incentive.
We conducted in-depth research and analyzed several factors when determining our cost data, including:
We closely evaluated seven crucial factors according to our solar panel installation company methodology to rank the best providers in the industry. Based on a 100-point scale, we came up with each provider’s score out of five stars. Here’s how we assessed each company: Cost and payment options (20 points): Companies that offer cash purchases and in-house loan financing earned full points in this category. Companies also receivebonus points if they offer solar panel leasing or power purchase agreements (PPAs). Services (20 points): Besides solar installations, companies offering backup battery and EV charger installations, energy efficiency audits and system monitoring earned the most points in this category. We also allotted points to companies that completed all their installations in-house (as opposed to contracting out installers). Reputation (20 points): We considered each company’s Google star rating, BBB customer review rating, BBB customer complaint response rate and NABCEP certification status to award each company its reputation score. Warranty (15 points): We verified that each company offers workmanship, product and performance warranties on all of its solar installs. Providers earned more points if their warranties were at or above the industry-standard length (10 years for workmanship and product warranties and 25 years for performance warranties). Customer Support (10 points): Solar companies that offered virtual consultations, a mobile app, 24/7 customer support and high customer satisfaction with backend support earned the most points in this category. Industry Experience (10 points): Providers with 10 or more years of experience in the solar installation industry earned a perfect score in this category. Sustainability (5 points): Companies with a detailed sustainability statement, ESG disclosures, end-of-life panel disposal programs and community partnerships earned all five points in this category.
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
Tori Addison is an editor with over five years of experience in the digital marketing industry. Her includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
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