Louisiana Solar Incentive Programs

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Louisiana experiences a warm and humid climate with around 220 sunny days annually, providing a substantial amount of sunshine for solar energy. While not among the sunniest states, Louisiana’s weather conditions still create a favorable environment for solar power initiatives. The state actively supports renewable energy through various solar incentives and rebates available to help residents save money on their solar energy systems. Here are some of the incentives available to Louisiana home and business owners:

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems installed in Lousiana can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 

Louisiana Solar Incentives and Rebates:

Louisiana offers a variety of solar incentives and rebates to help residents save money on their solar energy systems. The Louisiana Department of Natural Resources offers low-interest home improvement loans to homeowners who go solar or conduct other energy efficiency measures on their property. After getting recommendations from an energy auditor, you can receive a HELP loan with a reduced interest rate to pay for the energy work thanks to funds allocated by the Department of Natural Resources. The state also offers a sales tax exemption for purchasing machinery, equipment, and installation of solar energy systems. According to the law, you don’t have to pay sales tax on your solar modules, racking, and inverters because they are directly involved in the production of electricity.

Net Metering:

Net metering in Louisiana is a billing arrangement for solar panel owners that credits them for excess electricity they generate. When your solar panels produce more energy than your home consumes, the surplus is fed back into the grid and credited to your account, effectively spinning your meter backward. These credits can then be used to offset future electricity consumption, resulting in lower energy bills. Net metering promotes the efficient use of solar power, reduces reliance on fossil fuels, and supports the transition to clean energy. By participating in net metering, you not only save money but also contribute to a more sustainable energy future while helping maintain grid stability in Louisiana.

Further information and programs can be found at the Programs.Dsireusa.org