Louisiana Solar Calculator 2026
Calculate your solar savings in Louisiana. Understand Avoided Cost export compensation, property tax exemption, Entergy/Cleco/SWEPCO utility breakdown, and why self-consumption is key to Louisiana solar ROI.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Louisiana Solar Calculator 2026
Louisiana ended full retail-rate net metering for new solar customers in 2020. New installations receive only an Avoided Cost credit for exported electricity — commonly 2–3 cents/kWh — compared to the retail rate of roughly 12–16.5 cents/kWh. Self-consumption is the engine of solar savings in Louisiana.
Estimate Your Solar Savings
Find out how much you can save based on your location and current energy usage.
Federal Residential Solar Tax Credit (Section 25D)
This credit expired December 31, 2025 and is not available for systems installed in 2026 or later.
The 30% Residential Clean Energy Credit (Section 25D) applied to solar and battery storage systems placed in service through December 31, 2025. Systems installed in 2026 or later do not qualify. Many online calculators and contractor quotes still include this credit — be sure any estimate you receive reflects current law. The commercial Investment Tax Credit (ITC, Section 48) has different rules and may still apply to certain business or commercial installations.
Louisiana: Avoided Cost Export Compensation
Under the LPSC's September 2019 General Order, customers who interconnected after December 31, 2019 receive only the Avoided Cost rate — the utility's wholesale cost equivalent — for excess electricity exported to the grid. This rate is set annually by the LPSC per utility and has historically been in the rough range of 2–3 cents/kWh for Louisiana utilities.
By contrast, the retail rate you pay for electricity from the grid is roughly 12–16.5 cents/kWh for Entergy customers (varying by rate plan and applicable storm recovery riders). That gap — between what you save by self-consuming solar and what you earn by exporting it — is the central financial variable in Louisiana solar economics.
Confirm before you sign: The LPSC publishes an annual Avoided Cost Rate table (including a 2026 version) listing the current rate per utility. Get the exact current figure from your utility or the LPSC's published table before modeling payback.
Louisiana Solar Incentives: What's Actually Available in 2026
Property Tax Exemption — Active (R.S. 47:1706)
Solar electric and solar water heating equipment attached to an owner-occupied residential building is classified as exempt personal property under Louisiana law, meaning the solar system's added value is not subject to ad valorem (property) taxation. This is a genuine, current incentive for homeowners — distinct from the unrelated 2025 House Bill 464 proposal about commercial/utility-scale solar ITEP eligibility, which does not affect residential rooftop installations.
State Income Tax Credit — Expired Since 2015
The Louisiana residential solar income tax credit (R.S. 47:6030, a 50% credit) expired on December 31, 2015 — more than a decade ago. It has not been available since 2015. A 2024 legislative act repealed the dormant statute language effective 2025/2026, but that was purely administrative cleanup of an already-expired provision. Do not include any Louisiana state income tax credit in your 2026 ROI calculations.
Federal Tax Credit (Section 25D) — Expired December 31, 2025
The 30% federal residential solar tax credit expired December 31, 2025 under the One Big Beautiful Bill Act and does not apply to systems installed in 2026 or later.
Sales Tax — No Statewide Residential Exemption Confirmed
Louisiana does not have a confirmed statewide residential sales tax exemption for rooftop solar equipment as of 2026. Confirm current sales tax treatment with your installer or the Louisiana Department of Revenue before assuming an exemption applies.
Louisiana Utility Landscape
Your utility determines your specific Avoided Cost export rate, interconnection process, and any additional solar program terms. Louisiana's main utilities include:
Entergy Louisiana & Entergy New Orleans
Serve most of the state's population: New Orleans, Baton Rouge, and much of south and east Louisiana. Retail rates roughly 12–16.5 cents/kWh depending on rate plan — note that Entergy bills often include hurricane recovery storm riders that affect your effective per-kWh cost. Confirm current Avoided Cost rate for Entergy through the LPSC's annual rate table or directly with Entergy.
Cleco Power
Serves central Louisiana. Subject to LPSC Avoided Cost rules. Confirm current interconnection terms and export rate directly with Cleco or via the LPSC's published table.
SWEPCO (AEP)
Serves Shreveport and northwest Louisiana. An AEP subsidiary subject to LPSC oversight. Confirm export rate directly with SWEPCO or via the LPSC's annual Avoided Cost Rate table.
Municipal Utilities & Electric Cooperatives
Various municipal utilities and rural electric cooperatives serve other areas of the state. These utilities may operate under different interconnection and compensation structures than investor-owned utilities. Contact your cooperative or municipal utility directly to confirm their current solar terms.
Louisiana Solar Resource & Economics
4.5–5
Approx. peak sun hours/day (annual avg.)
~14¢
Avg. residential rate/kWh (approx. 2026)
2–3¢
Approx. Avoided Cost export rate range
Louisiana's southern latitude delivers strong solar irradiance — peak sun hours in the roughly 4.5–5 hours/day range place it well above most northern states. However, the gap between your retail rate (~14 cents/kWh) and the Avoided Cost export rate (~2–3 cents/kWh) means your system's financial return is almost entirely driven by electricity you self-consume, not electricity you export. Sizing your system to match your daytime household load — rather than maximizing total production — is a key design consideration. Adding battery storage can increase self-consumption but will add to upfront cost and extend payback timelines further. All rate figures are approximate; confirm current numbers with your utility and the LPSC before making purchasing decisions.
Frequently Asked Questions
Everything you need to know about solar incentives, costs, and savings.
Data accuracy note: Louisiana solar policy, LPSC Avoided Cost rates, utility tariffs, and state statutes change regularly. The information on this page reflects publicly available sources as of 2026 and is provided for general educational purposes only — not as legal, tax, or financial advice. Confirm current figures and program eligibility with the Louisiana Public Service Commission, Entergy, Cleco, SWEPCO, your specific electric cooperative or municipal utility, and a qualified tax professional before making purchasing decisions.