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:
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Federal Solar Investment Tax Credit (ITC):
The Federal solar Investment Tax Credit (ITC) is a tax credit that can be claimed on federal income taxes for a percentage of the cost of a solar photovoltaic (PV) system. The Inflation Reduction Act provides for an increase to the energy investment credit for qualifying solar and wind facilities benefitting certain low-income communities. Solar PV systems installed in 2022 and 2021 were eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.
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
