Solar Panel Cost in Louisiana (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #36 of 50 states for modeled payback

Louisiana averages about 4.7 peak sun hours a day (about average for the US) with an approximate residential electricity rate near 12¢/kWh, on the lower end nationally. In the model used here, an 8 kW system in Louisiana produces roughly 10,980 kWh a year and trims about $1,300 off annual electricity costs, paying back its net cost in about 11.5 years. That is a middle-of-the-pack payback, so whether solar is worth it in Louisiana often comes down to your specific rate, roof, and any state or utility incentives.

Estimated system cost and payback in Louisiana

Costs assume roughly $2.70/watt installed for Louisiana; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in Louisiana

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. Louisiana's 4.7 sun hours set production, and its roughly 12¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in Louisiana

The Louisiana Public Service Commission ended retail net metering for new customers with a 2019 rule that took effect at the start of 2020. Systems interconnected under the old rules were grandfathered for 15 years, through the end of 2034, and continue to receive kilowatt-hour credits at the full retail rate. A home going solar now with Entergy Louisiana, Cleco or SWEPCO instead has its exports credited at the utility's avoided cost, a wholesale-based rate typically only a few cents per kilowatt-hour, while energy consumed on site still offsets the retail price.

Because the new rule nets consumption and production within short intervals rather than across a month, timing matters: a family that is out during the day exports most of its production at the low rate. New Orleans is a special case, since Entergy New Orleans is regulated by the New Orleans City Council rather than the LPSC and has followed its own net metering rules, which should be confirmed separately. Cooperatives such as DEMCO and SLEMCO set their own export terms under LPSC oversight.

Louisiana solar incentives beyond the federal credit

Louisiana once had one of the country's most generous state solar tax credits, worth up to half of system cost, but it was capped and then phased out for purchased systems installed after 2015, and nothing comparable has replaced it. As of 2026 there is no state credit, no rebate and no renewable energy credit market for residential solar.

Solar equipment on a residence is exempt from ad valorem property tax under state law, so an array should not raise your assessment. The Louisiana Department of Energy and Natural Resources runs programs financed by federal funds, including Home Energy Rebates aimed at efficiency; check whether any current program applies to solar before counting on it.

Utilities and rate plans in Louisiana

Entergy Louisiana serves the largest share of the state, including Baton Rouge and much of south and north Louisiana, with Entergy New Orleans covering the city. Cleco Power serves central Louisiana and parts of the south, SWEPCO covers the Shreveport area, and cooperatives fill in rural parishes. Retail rates are below the national average because natural gas is cheap in the region, which lengthens payback despite abundant sunshine. Residential tariffs are largely flat-rate with fixed customer charges, and Entergy's fuel and storm recovery riders swing bills seasonally; heavy summer air conditioning means daytime solar production lines up well with consumption, which is the main lever for savings under avoided-cost export pricing.