Louisiana is blessed by a large number of sunny days. This makes it an ideal spot for solar panels. Louisiana has an average of 214 sunny days per year. This makes solar panels in Louisiana a great choice for this climate. All major solar brands can be used in Louisiana. You can save money by choosing cheaper brands that still produce great power but are slightly more expensive overall. In Louisiana, you'll be able to enjoy tax incentives and Net metering.
Louisiana's average cost for solar panels
The average cost of solar panels in Louisiana is about $2.57 per watt, which is lower than the national average of $2.66 per watt. This is still higher than California's average cost of solar panels. Louisianans consume more electricity than the rest of the country. In Louisiana, homeowners require a minimum of a 12.5kW system to provide their energy needs. Louisiana's all-in prices are much higher than those in other states because of this.
Louisiana's solar incentive is one of the most generous in the country. It offers a 50% tax credit on solar installations. Although this incentive isn't perfect, it makes solar panels more affordable in Louisiana. Low-income households can also benefit from the state's Home Energy Loan Program. Louisiana was also the first state to offer a tax credit for solar installation in 2008. This was among the most popular in the United States. This tax credit was worth up to 50% of total system costs and was set expire in 2024.
Louisiana tax incentives for solar panel installation
Louisiana residents who want to install solar panel systems can get a federal tax credit. The federal tax credit covers approximately 26% the cost of a system that uses solar energy. This is a huge advantage for Louisiana homeowners who want to install solar panels. The credit expires on 2032. It will be reduced from 26% to 2033 and 22% to 2034. This tax credit is also available to Louisiana residents who have mortgages.
One of the best aspects of Louisiana's tax incentives for solar panels is that the state does not levy a sales tax on the added value of a solar system. This means homeowners will be able to cut down on their electric bill by up to 50% without worrying about rising property taxes.
Louisiana has net metering for solar panel installations
Net metering, which allows utility customers export excess electricity from solar panels to be used in the power grid, is a policy. This helps to reduce your electric bill. The program has important economic benefits. It raises solar energy demand and creates employment in the solar supply chain. Today, more than 230,000 Americans are employed by the solar industry thanks to net metering policies.
Net metering, which has made rooftop solar more affordable in recent years, has been a driving force in many areas. However, utilities across many states are fighting to limit the policy as they believe it will increase rates for non-solar clients. Unfortunately, the Louisiana Public Service Commission rescinded its net-metering policy, making the transition for solar homeowners more difficult.
Although Louisiana has a lower power rate than most other states, the cost for solar panel systems in Louisiana is still much lower than elsewhere. This does not mean solar isn’t worth the investment. Louisiana's average home owner uses 1,201 kilowatt hours of electricity per month. This is well above the national average. Because most Louisians have low electric bills, solar is a good investment.