2023 Solar Incentives Guide for Opelousas, LA - Tax Credits & Rebates

What Solar Tax Credits, Incentives, and Rebates are Available in Opelousas?

Source: https://www.dsireusa.org/

Solar incentives mitigate the cost of installing a solar panel system on your home. Financial incentives like these are in place to encourage more homeowners to make the switch to renewable energy. Solar incentives might include upfront discounts, cash back or monthly credits towards your utility bill. Some incentives are provided by the federal government, some by the state of Louisiana and some by your specific utility company, county or municipality. Categories of solar incentives include:

• Tax Exemptions: These might come in the form of property tax exemptions, which let you ignore the value added by your solar panels when paying property tax on your house. You may also qualify for an exemption on sales tax at the time of purchase.
• Tax Credits: These credits are dollar-for-dollar reductions (not deductions) in how much income tax you owe the government.
• Net Metering: You may be able to sign a net metering agreement with your Opelousas utility company. This agreement may apply to all or a percentage of the excess electricity your solar panels generate. They will then deduct this value from your monthly utility bill.
• Rebates: Your solar installer might help you claim a rebate, or partial refund after purchase, for your solar system. States or counties will also sometimes offer limited-time rebates. If you receive a rebate, that amount will usually be deducted from your total price before any tax credits are calculated.

Federal Solar Incentives

Federal incentives are the kind of incentives that you are most likely to have some familiarity with. The Federal Solar Investment Tax Credit, or ITC, is likely the most commonly known federal solar incentive. The ITC allows you to claim a tax credit for a set percentage of the cost of your solar system.

The ITC applies to solar systems installed after January 1, 2006 on a primary or secondary residence that you own in the United States. Initially, the credit applied to 30% of the total cost — for panels, accessories, equipment and labor — although it may range from 26-30%, depending on the installation date of your solar system. There is no cap on the amount you can claim.

Reaching out to your local Opelousas solar panel installation expert is the best way to understand how the ITC applies to you.

The ITC was renewed and increased in scope after the passage of the Inflation Reduction Act in August 2022. It's also now called the Clean Energy Credit. The Clean Energy Credit lasts until 2035. Solar installation projects started after January 1, 2022 and completed by the end of 2032 may qualify for a 30% tax credit; the amount will be decreased slightly on a yearly basis until the end of the current program. Starting in 2023, it will also be easier to claim credits for energy storage systems with the new act.

More information about the new Inflation Reduction Act can be found here. To best understand how the new Clean Energy Credit might apply to you, reach out to your local Opelousas solar installation expert.

State & Local Solar Incentives

Federal solar incentives are not your only option; rebates, tax credits and more might also be offered at the state and local level. These incentives might be handled by your county or municipality, or by the Louisiana government. Some incentives may be ongoing, while others are available for a limited time.

Next Steps for Installing Solar in Opelousas

Nationwide solar energy use has gone up significantly in the past 15 years, in part thanks to the increase in availability of solar incentives. You can obtain these incentives from the federal government, the Louisiana government or your local utility company. If you're ready to make the switch to solar energy, reaching out to your local Opelousas solar panel installation expert is an excellent place to start.