Solar Financing in Louisiana
Lease vs. Buy vs. PPA — Complete financing guide for LA homeowners
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Going solar in Louisiana? With electricity rates averaging 12.5¢/kWh and good solar resources, choosing the right financing option can save you $20,475 or more over 25 years. This guide breaks down every option available to Louisiana homeowners.
Avg Rate
12.5¢
per kWh
Solar Resource
Good
LA
Typical System
9kW
residential
Payback
~12.0 yrs
estimated
Solar Incentives & Tax Credits in Louisiana
Louisiana homeowners can take advantage of the following solar incentive programs:
Federal Solar Investment Tax Credit
30% federal tax credit via Section 48E for qualifying projects (leases, PPAs, commercial) that begin construction before July 4, 2026. The residential ownership credit (25D) expired December 31, 2025.
30% of system cost
Solar Energy Property Tax Exemption
Solar energy systems are exempt from property tax on the added value (LA Rev. Stat. 47:1705.2).
100% property tax exempt
Louisiana Department of Natural Energy Loans
ConserFund and other low-interest loan programs finance energy improvements including residential solar.
Low-interest loans
Net Metering in Louisiana
Louisiana transitioned to a net billing system in 2020. Export credits are at the utility's avoided cost, approximately 3-5 cents per kWh.
✓ Louisiana offers a property tax exemption for solar installations, meaning your property taxes won't increase despite the added home value.
Compare Financing Options in Louisiana
See how cash purchase, solar loan, lease, and PPA compare based on Louisiana's average rates:
Solar Financing Comparison for Louisiana
Based on 12.5¢/kWh electricity rate and a 9kW system
Cash Purchase
Pay upfront — maximum long-term savings
- Upfront Cost
- $18,900
- Monthly Savings
- $131/mo
- Tax Credit Eligible
- Yes
Solar Loan
$0 down — own the system over time
- Down Payment
- $0
- Monthly Payment
- $185/mo
- Net Monthly
- $-54/mo
- Tax Credit Eligible
- Yes
Solar Lease
$0 down — provider owns the system
- Down Payment
- $0
- Monthly Payment
- $117/mo
- Net Monthly
- $14/mo
- Tax Credit Eligible
- No
Power Purchase Agreement
$0 down — pay per kWh produced
- Down Payment
- $0
- Annual Savings
- $882/yr
- Tax Credit Eligible
- No
Estimates based on average Louisiana (LA) rates and system costs. For a personalized comparison, use our full financing calculator.
Lease vs. Buy vs. PPA in Louisiana
Buying (Cash or Loan)
Best for: Maximizing long-term savings and home value.
- You own the system and all electricity it generates
- Eligible for the 30% Federal Tax Credit (~$8,100 on a 9kW system)
- Property tax exempt in Louisiana
- Increases home value by an average of 4.1%
- Highest 25-year savings: ~$20,475
- You handle maintenance (panels need little)
Solar Lease
Best for: Zero upfront cost with predictable payments.
- $0 or low upfront cost
- Fixed monthly payment (no surprise bills)
- Maintenance and repairs typically covered
- Not eligible for tax credits or incentives
- Lower 25-year savings (~$4,275)
- May complicate home sale (lease transfer)
Power Purchase Agreement (PPA)
Best for: Paying only for what you produce, $0 down.
- $0 upfront cost
- Pay a per-kWh rate (typically lower than utility)
- Provider owns and maintains the system
- Not eligible for tax credits
- Rate escalates 2-3% annually (read the contract)
- Lowest 25-year savings of the three options
Solar Financing FAQ — Louisiana
Is solar worth it in Louisiana?
Yes, solar is a worthwhile investment in Louisiana. With moderate electricity rates averaging 12.5¢/kWh and good solar resources, a typical 9kW system can offset most of your household electricity usage. The estimated payback period is 12-14 years, after which you enjoy more than a decade of largely free electricity. louisiana transitioned to a net billing system in 2020 is the main policy factor to verify with your utility.
What solar incentives are available in Louisiana?
Louisiana residents can claim the 30% Federal Solar Investment Tax Credit (worth $8,100 on a typical 9kW system). The state also offers Solar Energy Property Tax Exemption, Louisiana Department of Natural Energy Loans. Louisiana offers a property tax exemption, so your property taxes won't rise despite the added home value.
Should I lease, buy, or get a PPA in Louisiana?
Buying your solar system (cash or loan) maximizes long-term savings and qualifies you for the 30% Federal Tax Credit. On a typical 9kW system in Louisiana, that's about $8,100 back. Buying yields roughly $20,475 in net savings over 25 years. Leasing or a PPA requires $0 down and includes maintenance, but you won't get tax credits and your 25-year savings will be much lower (around $4,275). If you can afford the upfront cost or qualify for a low-rate loan, buying is the clear winner in Louisiana.
How much does a solar system cost in Louisiana?
A typical 9kW residential solar system in Louisiana costs approximately $27,000 before incentives. After the 30% Federal Tax Credit (~$8,100), the net cost drops to about $18,900. Actual costs vary based on equipment quality, installer, roof complexity, and whether you add battery storage. Louisiana offers a property tax exemption, so your property taxes won't rise despite the added home value.
Does Louisiana have net metering?
Louisiana transitioned to a net billing system in 2020. Export credits are at the utility's avoided cost, approximately 3-5 cents per kWh.
What is the solar payback period in Louisiana?
The typical solar payback period in Louisiana is approximately 12-14 years. With a net system cost of about $18,900 after the federal tax credit and annual electricity savings of roughly $1,418-$1,733 (based on 12.5¢/kWh), most Louisiana homeowners see full payback within 14 years and enjoy 11+ years of largely free electricity thereafter.
Related Solar Tools
Estimates are based on Louisiana average rates, system costs, and the 30% Federal Solar Investment Tax Credit. Actual savings vary by installer, equipment, roof, and utility policy.