Is solar worth it in Louisiana?
At Louisiana’s average rate of 13¢/kWh and about 1300 kWh per kW of panels a year, a bought system takes more than 25 years to pay back on electricity savings alone — the federal credit ended for buyers at the end of 2025 — so here solar leans on self-consumption, a battery or a state/utility incentive to make sense. Run your own numbers below.
Sources: EIA · NREL · IRS. No federal credit — it ended 31 Dec 2025.
Independent estimate for guidance only — not a quote or advice. Low rates and limited net metering already meant slow payback — and with the federal credit gone since 2025, solar here leans entirely on your own usage and any utility incentive.
What drives solar payback in Louisiana
Louisiana homeowners pay about 13¢/kWh, which is 5.4¢ below the national average. A rooftop here generates roughly 1300 kWh per kW each year — about the typical US figure. On exports, Louisiana offers limited net metering: Low rates and limited net metering already meant slow payback — and with the federal credit gone since 2025, solar here leans entirely on your own usage and any utility incentive.
Louisiana electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 23% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 10.93–14.44¢/kWh
A worked example
For a Louisiana home with a $114/month power bill (typical household usage at Louisiana’s rate):
On these assumptions the system doesn’t recover its cost within the 25-year window on bill savings alone — a battery, heavier self-consumption or a state/utility incentive would be needed to bring it into range. Year-one savings already reflect Louisiana’s below-retail export rate (you save full value on the power you use as it’s made, less on what you export), which is why they’re lower than the bill. Assumes 3.00 $/W installed before incentives and a typical 40% self-consumption; your actual cost, roof and usage will differ — adjust the calculator above.
Who supplies your power in Louisiana
Louisiana's power market is dominated by investor-owned utilities. Entergy Louisiana serves most of the state, while Entergy New Orleans covers the city and is regulated separately by the New Orleans City Council rather than the state commission. Cleco Power serves central and south-central Louisiana, and SWEPCO (Southwestern Electric Power Company) covers the northwest corner. Beyond them, electric co-operatives such as DEMCO (Dixie Electric Membership Corporation) and Beauregard Electric, along with the municipal Lafayette Utilities System (LUS), serve large rural and suburban areas. Most of the state falls under the Louisiana Public Service Commission (LPSC), so terms are broadly consistent — with New Orleans the notable exception.
What you’re paid for what you export
The Louisiana Public Service Commission moved the state to net billing once the caps on the old net-metering programme filled up. Energy you use on-site as it's generated still offsets the full retail rate, but surplus sent to the grid earns only the utility's avoided-cost rate — roughly wholesale, well below the ~12.9 cents/kWh you pay to buy power back. That gap upends the maths. Nearly all of a system's value here comes from self-consumption, running the house directly off the array while the sun is up; exported kilowatt-hours fetch just a few cents, so oversizing to 'bank' summer surplus achieves little. Size to your daytime load, not your annual total.
Louisiana incentives & taxes in 2026
Louisiana once ran one of the most generous state solar tax credits in the country — but it was capped, wound down and closed to new residential systems. Today the shelf is bare: no active statewide rebate, no SREC or performance-payment market, no state solar tax credit for homeowners, and only minimal utility-level incentives that change infrequently. Whatever help still exists would surface as a utility rider or a local offering, and self-consumption savings have to do nearly all the work.
The 30% federal credit ended on 31 December 2025 and can now only reach a homeowner indirectly through a lease or PPA. Check the current state and utility programs on DSIRE’s Louisiana list, then type any incentive into the calculator above to see how it shortens your payback.
What solar costs in Louisiana
At $2.50 to $3.10 per watt, Louisiana installs sit on the cheap side, helped by low labour and permitting costs across much of the state. A typical 7-8 kW system runs from the high teens of thousands of dollars to the mid-$20,000s before financing. Payback now has to work against that full sticker price, so gather several competing quotes before committing to anyone.
The honest verdict for Louisiana
Go in sceptical here. Louisiana's retail rate is low (around 12.9 cents/kWh), so each self-consumed kilowatt-hour saves comparatively little; export credits sit near wholesale; and no meaningful state incentive remains to bridge the gap now that federal support has finished. On our default assumptions a bought system takes more than 25 years to repay on bill savings alone — it comes back into range only if you self-consume most of your output or add a battery. Households with heavy daytime air-conditioning loads that soak up production on-site are the exception that can still make it work. Model your own usage carefully, size to daytime consumption rather than annual totals, and treat any short quoted payback as a red flag.
Sources for this page
Driving electric — or heating electric — in Louisiana?
Your home electricity rate also sets what it costs to charge an EV and whether a heat pump beats a gas furnace. See the Louisiana EV charging cost and the Louisiana heat pump vs gas comparison.