Cost of Solar Panels in Louisiana: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Louisiana:

  • Average Cost Per Watt: $2.57
  • Cost of Average System: $23,773*
  • Cost of Energy Without Solar: $45,771
  • Payback Period: 16 Years**
  • Lifetime Savings of Going Solar: $13,646

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/22/2022

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Find Cost Savings on Solar in Louisiana

As a homeowner in Louisiana, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Louisiana
  2. Louisiana Solar Incentives
  3. Best Solar Panel Brands And Installed Solar System Costs in 2022
  4. EcoWatch FAQ: Solar Panel Cost Louisiana

 

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Cost of Solar Panels in Louisiana

The cost of solar panel systems in Louisiana is around $2.57 per watt, which is below the national average of $2.66. However, Louisianans use a lot more energy than residents in most states to combat the hot, muggy summers and cold winters. Most Louisiana homeowners need a system that is around 12.5 kW to offset their electricity costs.

This is a larger system size than the national average. As a result, all-in costs in Louisiana are higher overall despite a lower per-watt price and relatively low electricity rates, even in busy cities like New Orleans and Baton Rouge.

Solar Panel System Installation Cost in Louisiana

When you’re pricing your solar energy system, the most prominent factor will be the size of the solar array. For each additional kilowatt your home requires, you can expect to add about $2,570 to your total price. The table below provides some estimated costs before and after the solar tax credit for standard-size solar systems in Louisiana.

Size of Solar Panel System Louisiana Solar Panel Cost Cost After Federal Tax Credit
10 kW $25,700 $19,018
11 kW $28,270 $20,920
12 kW $30,840 $22,822
13 kW $33,410 $24,723
14 kW $35,980 $26,625
15 kW $38,550 $28,527

Ready to see how much your ideal solar system will cost but not sure where to turn? Check out our review of the best solar companies in Louisiana to find the most reputable installers.

What Determines the Cost of Solar Panels in Louisiana?

System size isn’t the only cost factor to consider when going solar. The equipment you choose, the financing options to take and the solar installer you select will all affect your price as well. We’ll discuss each of these cost factors below.

Solar Equipment

As is the case with any home improvement, the quality of the equipment you decide on when installing solar can sway your price significantly.

First, you’ll need to consider the brand of solar equipment you’re installing. There are a decent number of solar companies in and around Louisiana, so the costs for equipment are lower than in many other states. Higher-quality options — like SunPower solar panels or Tesla Powerwalls — will still be more expensive relative to other, less efficient equipment. However, the more costly and efficient your equipment is, the greater your savings will likely be in the long run.

Second, the type of equipment you want to be installed as a part of your solar project will affect your costs. All home solar setups include panels and inverters, but some homeowners wish to add on products like solar batteries to provide power through outages or electric vehicle chargers. These additional, optional pieces of equipment can bring your price up by thousands or even tens of thousands of dollars.

Solar Financing

With an average cost in Louisiana of $32,125, going solar is prohibitively expensive for many homeowners. Luckily, most solar installers provide access to solar financing, and solar loans are also available via many third-party lenders. Financing options significantly reduce or eliminate upfront costs, but you will end up paying more in the long run due to interest.

It’s best to include the total interest you expect to pay over the life of the loan when considering your costs to go solar. High-APR loans can add significantly to your all-in costs, but even low-APR solar loans can bring your total up by thousands of dollars. A good rule of thumb is to pay as much as you comfortably can upfront, as this will bring down the total interest paid and, potentially, your APR. You can use a solar calculator to decide what the ideal down payment is to reduce your interest.

Solar Installation Company

Finally, the solar panel installation company you choose will have an impact on your costs. Louisiana’s solar companies all charge different amounts for labor, equipment and warranties offered.

Opting for a company that only carries high-efficiency equipment — like SunPower panels — will naturally lead to higher prices than companies that install lower quality products. Panels with a high production can also save you more over the lifetime of the panels, so it’s best to balance upfront costs with expected savings.

Finally, the size of the company you choose can have a bearing on your total. Larger national companies frequently have suboptimal customer service and minimal options for system customization, but they also tend to have lower costs. It really depends on the specific company, as some smaller local installers will offer discounts or sales to undercut the national players.

Louisiana Solar Incentives

Paying upfront or financing a photovoltaic system in Louisiana might seem overwhelming from a cost perspective, but there are a number of incentives available to Louisiana residents that make switching to clean energy more accessible. We’ll discuss the solar rebates and incentives available in Louisiana below.

Federal Solar Tax Credit For Louisiana Homeowners

The most significant tax credit you’ll receive for Louisiana solar panels is offered by the federal government in the form of the federal solar investment tax credit (ITC). This rebate is for a massive 26% of your entire costs for switching to a renewable energy source, which, in Louisiana, averages out to $8,353.

The federal tax credit will drop to 22% in 2023, at which point the average rebate in LA will be $7,068. The credit is set to expire in 2024 unless Congress renews the bill.

Net Metering Policies in Louisiana

Net metering is a policy that compensates you for any excess energy your solar array produces. Through interconnection, your home will receive power from the grid if your panels ever fail to produce enough energy to meet your home’s needs — like at night or on a cloudy day. If your panels produce more than your home is using — like on a sunny day — then your home is powered off-grid, the excess gets routed to the electric provider and your meter runs backward.

Unfortunately, net metering in Louisiana is not required by state law, so not every utility company offers it to consumers. Those that do often have a lower rate of compensation than the price you pay for energy coming in. Every utility company has a different policy and buyback rate, so it’s best to check yours before committing to a net metering program.

For example, Energy Louisiana, a company that serves an enormous part of the state, changed its net metering policy in 2020 due to new regulations. The change saw a lowered buyback rate from retail prices to wholesale prices or what it calls an “avoided cost rate.” Ultimately, policies like this lower the overall value of solar power in Louisiana, but converting to solar is still considered a good investment for most homeowners.

Local Solar Rebates in Louisiana

While the net metering program in Louisiana isn’t the best, there are some appealing state incentives to reduce your total costs.

First, and most importantly, is the solar property tax exemption. Installing rooftop solar on your home, provided you buy the system outright or finance it, will increase your property value. Usually, increases in property value also bump up your tax assessed value and property taxes. The property tax exemption promises that your taxes won’t go up from the value added to your home when you go solar. For many customers, this can mean thousands of dollars in savings.

Second, the Department of Natural Resources in Louisiana has established the Home Energy Loan Program (HELP). This program provides access to low-APR financing options for home improvements that increase energy efficiency, including solar conversions, up to $12,000. The program further lowers the barrier to entry and makes solar more accessible to homeowners throughout Louisiana.

Best Solar Panel Brands And Installed Solar System Costs in 2022

In Louisiana, you have access to a wide variety of solar brands. The EcoWatch team has assessed and reviewed the best solar panels available, which are listed below. We’ve also included relative pricing to help you decide which is best for you.

Solar Panel Brand Average Cost Per Watt
LG Solar $$$
Canadian Solar $$$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

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People Also Ask 

EcoWatch FAQ: Solar Panel Cost Louisiana

We get questions about the process and prices of going solar from Louisiana homeowners every day. Below are the questions we see most often and our responses to each.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.