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As of August 2026, solar can still pay off in Louisiana, but for different reasons than most states. Power runs about 14.4 cents per kWh, below the national average, and the Gulf-South sun is strong. The catch: Louisiana ended 1:1 net metering for new customers, so exported power now earns a low avoided-cost rate. The 30% federal homeowner credit ended December 31, 2025.
- Louisiana residential power runs about 14.4 cents per kWh, below the national average, so each kilowatt-hour your roof makes and you use on-site is worth a bit less than in high-rate states (EIA retail sales, residential, April 2026).
- The Gulf-South sun is strong: a typical 6 kW rooftop system in New Orleans makes about 8,900 kWh a year (NREL PVWatts), among the higher production levels in the country.
- Louisiana ended 1:1 retail net metering for new customers. Under the LPSC distributed-generation rules, systems interconnected after 2019 are credited for exports at avoided cost, well below the retail rate (Louisiana Public Service Commission).
- For example, Entergy Louisiana credits exported power at about 2.6 cents per kWh (avoided cost, effective April 1, 2025), so sizing a system to your own daytime use matters here (Entergy Louisiana).
- The old Louisiana state solar tax credit is long expired: no credit is available for systems installed after December 31, 2017 (La. R.S. 47:6030).
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
Louisiana homeowners pay about 14.4 cents per kWh for electricity (EIA retail sales, residential, April 2026), below the national average, so the money case for solar here is built on strong Gulf-South sun and long-term rate protection rather than a high bill or rich state incentives. This page covers what Louisiana solar actually pays in 2026, why the state’s net-metering change matters, and how hurricane resilience factors in. It is part of our Solar by State guides; for the basics of how solar works, start with our solar resource hub.
Why solar pays in Louisiana: Gulf-South sun
Louisiana’s real solar advantage is production, not the bill. Power here is cheap by national standards, so the value comes from how much electricity a roof can make and how much of it you use yourself. According to MySolarFY’s analysis (August 2026), a typical 6 kW rooftop system in New Orleans (ZIP 70112) produces about 8,900 kWh a year (NREL PVWatts), which at Louisiana’s roughly 14.4 cents per kWh offsets up to about $1,280 of grid electricity a year when you use that power on-site. Baton Rouge lands close behind at about 8,700 kWh a year. Estimate your own roof with NREL’s free PVWatts calculator; actual output depends on your roof’s pitch, orientation, and shading. To weigh the full payback math, see the financial case for whether solar panels are worth it, or run the Louisiana numbers in our Louisiana solar panel cost and payback guide.
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Net metering in Louisiana ended for new customers
This is the single most important thing to understand about Louisiana solar. Louisiana used to offer 1:1 retail net metering, where every kWh you exported offset a kWh you imported at the full retail price. The Louisiana Public Service Commission ended that arrangement for new customers under its distributed-generation rules, so homeowners who interconnect after 2019 are credited for the power they export at avoided cost, the utility’s wholesale cost of generation, not the retail rate (Louisiana Public Service Commission). For example, Entergy Louisiana credits exports at about 2.6 cents per kWh (avoided cost, effective April 1, 2025), against a retail rate near 14.4 cents (Entergy Louisiana). Each utility sets its own avoided-cost rate, so confirm yours. The practical effect: solar in Louisiana pays best when you size the system to your own daytime use and consume what you generate, rather than banking on export credits. Systems interconnected before the change are generally grandfathered under the older terms. To understand how export credits work in general, read how net metering credits your solar exports, and to see how on-site use lowers your bill, read how solar lowers your electricity bill.
Louisiana solar incentives at a glance
Louisiana’s incentive stack is thin in 2026, and being honest about that helps you plan. Here is what is and is not available.
| Program | 2026 status | Source |
|---|---|---|
| 1:1 retail net metering | Ended for new customers; exports bought at avoided cost (about 2.6 cents/kWh at Entergy), not the retail rate | LPSC, Entergy |
| Louisiana state solar tax credit | Expired; no credit for systems installed after December 31, 2017 | La. R.S. 47:6030 |
| Federal residential credit (Section 25D) | Ended for expenditures made after December 31, 2025 | IRS |
The takeaway is that Louisiana no longer leans on a rich incentive to make solar work. The math now rests on strong production, cheap-but-rising grid power you lock in against, and, for many homeowners, backup power during outages. Always confirm the current status of any program with the source before you count on it.
Which utility serves you
Your utility sets your rate and your export credit, so it drives the numbers more than any statewide rule. Louisiana’s main electric providers are Entergy Louisiana (the largest, serving much of the state including the New Orleans and Baton Rouge areas), Cleco Power (central and southern Louisiana), and SWEPCO (Southwestern Electric Power Company, in the northwest around Shreveport). Many rural homes are served by electric cooperatives, and some cities, such as Lafayette through Lafayette Utilities System, run their own municipal power. Co-ops and municipal utilities are not regulated by the LPSC the same way the investor-owned utilities are, so their solar and export rules can differ; verify the interconnection and export terms with your specific provider before you sign anything. If Entergy Louisiana is your provider, our Entergy Louisiana solar and net metering guide breaks down its avoided-cost export credit and interconnection steps.
Hurricane resilience: solar plus a battery
In Louisiana, backup power is a real part of the solar case. The Gulf Coast sees regular hurricanes and multi-day outages, and a grid-tied solar system by itself shuts off during an outage for safety. Pairing solar with a home battery lets you keep essentials running when the grid is down, which many Louisiana homeowners value as much as the bill savings. A battery also helps you use more of your own daytime solar production in the evening, which matters more here now that exports earn only avoided cost rather than the retail rate. Battery sizing and cost vary widely, so treat any quote as a starting point and compare options. For how financing choices affect what you can add, see our solar financing guide.
How you pay changes what you get
The way you finance solar decides who owns the system and who claims any benefit tied to ownership. This is worth getting right in Louisiana, where the incentive stack is thin.
| How you pay | Up-front cost | Who owns the system |
|---|---|---|
| Cash | Full system price | You |
| Solar loan | Little or none, financed over time | You |
| Lease or PPA | $0-up-front where you qualify | A third-party company |
If you own the system (cash or loan), the production savings are yours, and you control whether to add a battery. If you lease or sign a PPA, the company that owns the panels typically keeps any credits tied to ownership, and your benefit is a lower or fixed power price with no up-front cost. Neither path gives a 2026 Louisiana homeowner the federal residential credit, since that credit ended after December 31, 2025. Solar is not free, and a lease or PPA is a long-term contract, so read the terms carefully.
What changed federally, and what it means for Louisiana
The federal homeowner credit is gone. A Louisiana homeowner who buys solar in 2026 cannot claim it. Section 25D, the 30% federal Residential Clean Energy Credit, ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act (IRS). A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner. Because Louisiana already has no state solar credit and no retail net metering for new customers, the federal change makes production, on-site use, and backup value the core of the decision. For the full timeline, see what the federal solar tax credit change means in 2026.
How to choose a solar installer in Louisiana
Rather than chasing a “best” list, screen any installer against objective criteria:
- Proper Louisiana licensing, including a Louisiana State Licensing Board for Contractors (LSLBC) license where required, plus electrical licensing.
- NABCEP certification, the industry’s professional standard for PV installers.
- A clear workmanship and equipment warranty in writing, which matters more in hurricane country.
- Real Louisiana experience, verifiable reviews, and help with your utility’s interconnection and export paperwork.
- A written production estimate and a transparent quote you can compare side by side. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes, with no obligation. Check what solar looks like at your address.
Frequently asked questions
Does Louisiana have net metering in 2026? Not the 1:1 retail kind for new customers. The Louisiana Public Service Commission ended full-retail net metering under its distributed-generation rules, so homeowners who interconnect after 2019 are credited for exported power at avoided cost, the utility’s wholesale generation cost, not the retail rate. For example, Entergy Louisiana’s avoided-cost credit is about 2.6 cents per kWh (effective April 1, 2025), against a retail rate near 14.4 cents. Systems connected before the change are generally grandfathered. Sizing a system to your own daytime use is the way to get the most value.
Is there a Louisiana state solar tax credit? No. Louisiana once offered a generous state solar tax credit, but it is long expired: under La. R.S. 47:6030 no credit is available for systems purchased and installed after December 31, 2017. Do not let a sales pitch quote a state credit that no longer exists. The federal residential credit is also gone for 2026, so the Louisiana solar case now rests on production and on-site savings, not tax credits.
Is solar worth it in Louisiana with cheap electricity? It can be, but the math is different here. Because power is cheap, the bill savings per kWh are smaller than in high-rate states, so payback is slower. What tilts the case is strong Gulf-South production, protection against future rate increases, and, for many homeowners, backup power during hurricane-season outages when paired with a battery. Run your own numbers with a written production estimate before deciding, and compare a few local quotes.
How much power will a solar system make in Louisiana? A lot, by national standards. According to MySolarFY’s analysis (August 2026) using NREL PVWatts, a typical 6 kW rooftop system in New Orleans produces about 8,900 kWh a year, and Baton Rouge lands close behind at about 8,700 kWh. Your actual output depends on system size, roof pitch, orientation, and shading, so use the free PVWatts calculator for your own address to get a realistic estimate.
Which utilities serve Louisiana solar customers? The main electric providers are Entergy Louisiana, Cleco Power, and SWEPCO (Southwestern Electric Power Company), plus many rural electric cooperatives and some municipal utilities such as Lafayette Utilities System. Your utility sets your rate and your export credit, and co-ops and municipal utilities can follow different solar rules than the investor-owned utilities, so confirm interconnection and export terms with your specific provider.
Reviewed by the MySolarFY team and updated for 2026. Figures were verified against the linked EIA, NREL PVWatts, Louisiana Public Service Commission, Entergy Louisiana, IRS, and Louisiana statute sources as of August 2026; rates, avoided-cost credits, and program rules change, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about MySolarFY.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Louisiana does not offer 1:1 retail net metering to new customers, and exported power is credited at avoided cost, which is well below the retail rate. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
