Is Solar Worth It in Louisiana in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Louisiana homeowners — without the federal ITC.
Cost Per Watt
$2.60
installed
Electricity Rate
$0.142
per kWh
Payback (No ITC)
11.8 yr
current reality
Payback (With 30% ITC)
8.3 yr
hypothetical
25-Year ROI
111%
return on investment
Incentive Breakdown — Louisiana
Available incentives for a typical 7kW residential solar system in Louisiana
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneLouisiana's solar tax credit expired in 2017.
SREC Market
Not AvailableLouisiana does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Key Incentives: Property tax exemption for solar.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Louisiana
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.60/W
- Gross Cost
- $18,200
- Federal ITC
- $0
- Net Cost
- $18,200
- Annual Savings
- $1,537/yr
- Payback Period
- 11.8 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $2.60/W
- Gross Cost
- $18,200
- Federal ITC (30%)
- -$5,460
- Net Cost
- $12,740
- Annual Savings
- $1,537/yr
- Payback Period
- 8.3 years
Impact: Without the federal ITC, Louisiana homeowners face a 3.5-year longer payback period — paying $5,460 more out of pocket.
Net Metering Policy — Louisiana
How Louisiana compensates your excess solar production
Reduced export credits or net billing — you earn less than retail for excess solar. Moderate impact on payback.
Louisiana transitioned to a net billing system in 2020. Export credits at utility's avoided cost, approximately $0.03-0.05/kWh.
Cost Per Watt Benchmark — Louisiana
Louisiana Average
$2.60/W
National Average
$3.05/W
Typical 7kW System
$18,200
Louisiana's average installed cost is below the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Louisiana breaks even in 11.8 years. With the former 30% ITC, payback would drop to 8.3 years.
Without Federal ITC
11.8
years to break even
With Former 30% ITC
8.3
years to break even
Production Details
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