Solar Panels in Louisiana, Costs, Tax Breaks, and More

Louisiana has some of the highest electricity rates in the US due to its location and frequent tropical storms. If you want to put a dent in those high bills, solar panels could be a good option.

Renewable sources generate only 4% of the state’s electricity, and only a tenth of that is solar energy. The state’s Climate Action Plan supports solar investments to reach the goal of net zero greenhouse gas emissions by 2050. 

The price of residential solar panel systems has decreased by more than 50% in the last decade while electricity rates continue to increase in most of the country. In Louisiana, electricity rates increased by 6.2% in one year based on December data from the Energy Information Administration. 

Installing solar panels is a great way to save money on your energy bills and reduce greenhouse gas emissions. Here’s what you should know before doing so in Louisiana.

Louisiana solar panel costs

The total cost of your solar system in Louisiana depends on how many panels you need, installation fees, permits and whether you decide to add solar batteries. Based on Find Energy and consulting firm Wood Mackenzie, solar costs are higher in Louisiana than the US average. The costs shown in the following table are before applying any financial incentives.

Louisiana vs. the US

Average system size (kW) Price per watt Total cost
Louisiana 8.6 $4.00 $34,400
US 8 $2.99 $23,920

Solar financing options for Louisiana residents

There are several buying options to consider when buying a solar system. Some budgets may be a good fit for a cash purchase while others may benefit from options with lower upfront costs. Check out CNET’s solar buying guide to further explore solar payment methods.

Cash: Incentive-eligible options include a cash purchase and solar loan. A cash purchase provides a larger return on investment but comes with high upfront costs. 

Solar loan: These loans are typically offered by your solar installer or one of their partners. Solar loans have lower upfront costs, but interest and fees add up over time. 

Other loans: You don’t have to use a solar-specific loan to buy solar panels. You can also use a home equity loan, home equity line of credit or personal loan, although these options all come with risks and drawbacks of their own.

Leases and PPAs: Solar leases and power purchase agreements are not eligible for incentives but are an option if you want to power your home with solar energy without panel ownership. The main difference between leases and PPAs is payment. In a solar lease, the solar company owns the panels and you pay a fixed monthly price. In a PPA, you pay a monthly fee to a solar company for the amount of energy used. 

Louisiana solar panel incentives and rebates

Even though costs have decreased, installing a solar system is still a significant investment. Solar incentives are available in Louisiana to make solar more affordable. 

One of the most substantial incentives is the federal residential clean energy credit, which offers 30% toward the purchase of a solar system as a credit on your federal tax return. In Louisiana, this credit could save over $10,000 on the average system. Additional incentives lower the total price and payback period. 

Louisiana solar incentives

Solar panel companies in Louisiana

We researched solar companies to put together this selection of the 65 available in Louisiana. The following includes local and national solar options to consider. We recommend receiving multiple quotes to compare and choose what works for your budget. 

ADT Solar

Headquartered in Mandeville, Louisiana, ADT Solar is a national residential solar installer. ADT Solar installs name-brand products such as QCells solar panels, Enphase microinverters and the Tesla Powerwall solar battery. ADT guarantees your products will last with its 25-year quality of work warranty and power production guarantee. The company also offers a price protection guarantee to match a competitor’s rate for equal products and benefits. 

Solar Alternatives

Since 2008, Solar Alternatives has provided commercial and residential solar services to Mississippi, Texas and Louisiana. In addition to solar panels, Solar Alternatives installs solar batteries, the Tesla Solar Roof and electric vehicle chargers. The company offers services for solar panel upkeep, such as panel cleaning, maintenance and system inspection and handles manufacturer warranty claims. 

JEH Solar LLC 

JEH Solar provides solar and electrical services in Lafayette, Louisiana and the surrounding neighborhoods. The company installs panels, inverters and solar batteries from brands like Enphase, SolarWorld and DPW Solar. Manufacturers’ warranties back the solar system components, but the company website does not detail any quality of work warranty.  

South Coast Solar 

Located in South Carolina and Louisiana, South Coast Solar has 13 years of solar installation experience. The company’s solar consultants take you through the design process and continue providing support for maintenance and repairs. South Coast Solar’s certified professionals install SunPower solar panels and the Tesla Powerwall battery.

SunPower Solar

SunPower Solar is a solar installer and manufacturer headquartered in California. SunPower is one of the largest solar companies in the US and CNET’s top pick. The company’s 25-year warranty supports products, production and quality of work. 

Installation factors to consider

Remember the following questions when determining if installing a solar system is right for you. 

Factors to consider

Does your insurance policy cover solar panels? If your current homeowner’s insurance policy does not include solar panels, contact your agent to make updates.
Is your home shaded? Solar panels perform best with at least four hours of direct sunlight. Consider removing any obstructions.
Are you a member of an HOA? Homeowners associations in Louisiana cannot ban solar panels, but there may be restrictions. Check with your HOA or other neighborhood association for guidelines.
What is your roof condition? Your roof will require maintenance before installation if it is old or damaged. Factor roof repair into your total cost.
Do you rent or own your home? Renters are usually kept from making many changes to the property. Community solar programs are available for renters through subscription-style services.
Who completes the solar installation process? Ask your selected solar company if the installation process is completed in-house or with subcontractors. Ensure you have a list of who to contact throughout the process.
Have you received multiple price quotes? Getting estimates from various companies can help you determine the company that best fits your budget.
What is the company’s warranty? Not all companies list warranties on their website. Ask and compare the lengths and terms for any potential maintenance and protection.

Louisiana solar FAQs

How much do solar panels cost in Louisiana?

A solar panel system covering your home’s energy needs may cost between $24,000 and $40,000 before incentives. The total cost for your system depends on the system size and your home energy needs. The larger the system size, the higher the cost. If you don’t want a system that will supply all of your energy, a smaller system reduces the total price. 

Should I buy or rent solar panels?

It depends. If you want to use financial incentives and can afford the upfront costs or loans then buying is a good option. Solar leases, power purchase agreements and community solar are a good fit if you don’t want to own or maintain the solar panels or if you rent your home.

How can I find a solar installer in Louisiana?

With several solar installers available, it can be challenging to make a decision. We recommend inquiring with multiple solar companies to compare price quotes, warranties and processes. You can also check out CNET’s Best Solar Companies as a starting point.