Solar Legislator Score: 
Louisiana, home to Cajun country and the Big Easy, the sportsman’s paradise has a little bit of everything under the sun. Using renewable energies like solar power could help keep Mardi Gras and Jazz Fest around for years to come. How has the Louisiana legislature fared with promoting clean power? Keep reading.
STATE LEGISLATION
In 2007, the Louisiana legislature passed Act 371, which gives a tax credit for solar and wind energy systems. Beyond this tax credit an a property tax exemption for solar energy equipment, Louisiana has not yet seen the light when it comes to renewable energy.
NET-METERING
Louisiana’s net metering rules, established in 2005, cover residential systems up to 25kW and commercial systems up to 100kW. Net excess power generated gets credited to the customer’s next bill. The good thing about Louisiana’s net-metering rule is that there’s no annual limit on this. The credits continue indefinitely. Customers are paid the wholesale rate for any net excess power generated when they cancel service.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
The Tax Credit for Solar and Wind Energy Systems on Residential Property passed by the Louisiana legislature in 2007 offers a 50% tax credit on the first $25,000 spent by either a corporation or an individual to install a solar or wind energy system. This amounts to a maximum credit of $12,500.
Check out these other rebates and incentives for renewable energy in Louisiana:
Corporate Tax Credit
* Tax Credit for Solar and Wind Energy Systems on Residential Property (Corporate)
Personal Tax Credit
* Tax Credit for Solar and Wind Energy Systems on Residential Property (Personal)
Property Tax Exemption
* Solar Energy System Exemption
State Loan Program
* Home Energy Loan Program
State Rebate Program
* Home Energy Rebate Option (HERO)
Utility Rate Discount
* Cleco Power - Power Miser Home Program
Utility Rebate Program
* DEMCO - Touchstone Energy Home Program
EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
With a state solar rating of Good, installing a solar electricity system is a great way to lower electric bills at home. A typical 3kW system in New Orleans would cost about $58,500. When you add in the federal and state tax credits, you can install a system for around $47,500. While saving you around $1,000 each year on utility costs, the solar electricity system will pay for itself in about 20 years. The best part is that you’ll also get to keep about 160 tons of greenhouse gasses out of the atmosphere!
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Building Type:
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Residential
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State & County:
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LA - Orleans
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Utility:
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Entergy New Orleans Inc
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Utility Type:
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Investor-Owned Utility
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Assumed Average Electric Rate:
Please check against your bill
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$0.0946 /kWh
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Assumed Average Monthly Electricity Usage:
Please check against your bill
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1,300 kWh/Month
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Your Average Monthly Electricity Bill:
(Assumed rate x average monthly usage)
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$123 /Month
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Tiered Rates Apply:
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No
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Time-of-Use Metering Offered:
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No
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Net-Metering Available:
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Yes
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ESTIMATED SYSTEM SIZE
The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 5.20 kW and 7.80 kW of peak power. This estimate assumes the mid-point of this range.
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Solar Rating:
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Good (4.74 kWh/sq-m/day)
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Solar System Capacity Required:
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6.50 kW of peak power (DC watts)
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Roof Area Needed:
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650 sq-ft
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ESTIMATED SYSTEM COST
This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.50 kW peak power system will cost between $46,800 and $70,200. This estimate assumes the mid-point of this cost range.
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Assumed Installation cost:
(before rebates, incentives or tax credits)
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$58,500 assuming $9 /watt
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Expected Entergy New Orleans Inc Utility Rebate:
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($0)
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Expected LA State Rebate:
State incentive does not apply to this utility
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($0)
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LA State Tax Credit/Deduction (50% of net system cost) (Maximum of $12500)
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($12,500)
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Federal Tax Credit:
(Installation type: Residential )
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($2,000)
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Income Tax on Tax Credit:
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$3,500
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YOUR ESTIMATED NET COST:
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$47,500
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Monthly Payment (6.5% apr, 30 years):
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$300
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SAVINGS & BENEFITS
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Increase in Property Value:
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$12,840
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Exempt from Property Tax:
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YES
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Accelerated (5 yr) Depreciation:
(Installation type: Residential )
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No
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First-year Utility Savings:
Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher!
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$642
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Average Monthly Utility Savings:
(over 25-year expected life of system)
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$90
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Average Annual Utility Savings:
(over 25-year expected life of system)
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$1,078
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25-year Utility Savings:
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$26,939
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Return on Investment (ROI):
(with Solar System ave. cost set as asset value)
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142%
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Return on Investment (ROI):
(with Property appreciation set as asset value)
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525%
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Years to Break even:
(Includes property value appreciation)
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19 years
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Years to Break even:
(Assuming no property value appreciation)
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26 years
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Greenhouse Gas (CO2) Saved:
over 25-year system life
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160.0 tons (320,000 auto miles)
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CONSENSUS
Louisiana has not yet caught on to the benefits of solar power. While some of that may have to do with cleanup from hurricane Katrina, the legislature needs to start promoting clean energy; Louisiana legislators could open up a whole new market considering all the reconstruction that needs to be done. Creating greater incentives for installing solar electricity and hot water systems could go a long way toward reinvigorating the local economy. Now is the time to get moving on solar power; laissez les bons temps rouler!
Click here to get hooked up with a local solar installer for your home or business
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[…] solar energy equipment, louisiana has not yet seen the light when it comes to renewable energy. …http://www.solarpowerrocks.com/louisiana/Alternative Energy Sources… is for the students to determine what types of energy sources can be […]
With the present Solar units lifespan of 20 years then the “years to break even” figure of 26 years doesn’t give much credence to install such a system… “green house” gas or not!
The cost is still to high… maybe if the life of a system was 50 years.
Hi Chris, Systems can possibly last 50 years.. there are no moving parts and the PV panels themselves are made of inert Silicon. The inverter will probably not make it that long, but if replaced, you could seriously get power our of your system for that long. We have systems we did 30 years ago that are still kicking.
Also, Louisiana will need some new subsidies, but the payback period is probably not 26 years unless you have very low electrical usage and maybe some shading issues. It’s best to get a quote and see what the scoop is.
I agree, the credits you get don’t really help much. I’ve looked into this and wait and see how things work out.Also you have to hope nothing breaks/i.e. hurricanes, weather in general
If you include the fact that the systems themselves have value, the ROI is really day one. Without that, it is about 15.5 years.
With thermal, the ROI again, if you figure the equipment is worth at least $1,000, is less than one year.
PS…you also have to figure that energy rates will not stay the same in the future. So you need to add about 5%/year minimum to whatever you are paying now to figure ROI.
Butler Ives
South Coast Solar
New Orleans, La
I am about to rebuild my home that I lost to Katrina and will be rebuilding about 1300sq.ft. does anyone have an idea what size solar system that I would need and if it would make since to invest that kind of money on such a small place?
When are solar power companies going to move from panels to the commercially available roll on solar films?
To answer Johns question about “solar film”… we’ve been offering solar laminate for people with sloped metal roofs or flat roofs for years. The problem is that most homes have shingle roofs and film will not stick to them. Thin film is about half the efficiency of modules so it will take twice the area for the same power.
If the costs came down to earth on the equipment and installation, thousands more people would be able to afford this product. The up front cost makes it almost impossible to think about making solar power a reality instead of just talk and speculation about its benefits.
Let’s get the costs down, make this an easy choice for people everywhere wanting to use solar power for their residences and commercial property, reduce greenhouse gases, and put the big power companies out of business.
The Chevy Volt electric (mostly)car in late 2010 changes the economics for me. Solar can charge my house system batteries by day and then time shift my solar power to charge my car batteries at night. The pay back on something like this, while difficult to calculate, certainly passes my “gut check” logic.
Ed, if initial costs are your concern, you should really consider Solar Thermal for heating the water in your home.
Our systems sell for a little less than $8,000, and with the tax credits, your out of pocket is less than $2000.
You’re going to have to pay taxes anyway, so just take the money you’ve saved for that, put it towards thermal now, and by the time tax season rolls around you might have already paid for 1/2 of it!
Email us if you are interested @ info@southcoastsolar.com
It is an affordable way to “go” solar.
Butler Ives
Director of Sales & Marketing
South Coast Solar, LLC
New Orleans, La
A little correction, above it states that a typical 3kw system in New Orleans installed is $58,500..THIS IS NOT CORRECT.
A typical 3kw system, installed, by a good, professional solar energy contractor, should run less than $25,000..installed..with NO SALES TAX ADDED.
Especially if we ( South Coast Solar) do it for you!!
By the way, I’ve heard that some companies are charging people sales tax. ( you know who you are) This is NOT LEGAL. Call the la dept of revenue and ask them if an improvement to your home ( which is considered immovable) can have sales tax charged.
South Coast Solar is setting the bar in Louisiana for the most honest, dependable solar installations possible.
In the gulf south solar is relatively new, so be sure to do your homework, ask a lot of questions, and pay close attention to the smell test.
Don’t pay sales tax, don’t pay for a site visit, and make sure that when a company tells you how much energy a system will generate, they include things such as inverter inefficiencies, solar haze, dust on the collectors, etc.
Also, check to make sure they have workers comp and general liability insurance.
Butler Ives
I have a small double wide mobile home in the country. My current elec usage is @ 1400 KWH per month. How much would a turn-key setup cost? My address is 9881 Highway 159 Shongaloo LA 71072
South Coast Solar is the solar provider for my environmental consulting firm:
Phoenix Environmental Group
www.phoenixenvironmentalgroup.com
In addition to implementing solar systems, I would highly recommend a “green audit” to identify other energy efficiency measures for the home or business to maximize energy savings.
I am buying a home and I am interested in installing solar panels. I live in New Orleans and will buy home in six months.
