Louisiana Solar Power Rebates, Tax Credits, and Incentives

french quarter solar new orleans Louisiana Solar Power Rebates, Tax Credits, and Incentives
A beautiful day for a stroll in the French Quarter

Solar Legislator Score:  Louisiana Solar Power Rebates, Tax Credits, and Incentives Louisiana Solar Power Rebates, Tax Credits, and Incentives Louisiana Solar Power Rebates, Tax Credits, and Incentives Louisiana Solar Power Rebates, Tax Credits, and Incentives Louisiana Solar Power Rebates, Tax Credits, and Incentives

Lousiana has the best solar rebate program in the Nation.  Half.  They give you half.  Wow.   Even Brad Pitt is all over it :-) …Now some of the other legal settings, logistics, weather, installer base, etc, aren’t perfect, but that MASSIVE rebate is enough to trump it and for us to give LA the coveted 5 stars for it’s solar incentives. That’s 50% of the cost off your system up to $12,500.  If you don’t owe that much in state tax you get a CHECK.   Also, the $12,500 cap is PER SYSTEM so you could duplicate it if you have multiple meters to solar up.

SOLAR STATE LEGISLATION – 50% Rebate for Solar

In 2007, the Louisiana legislature passed Act 371, which gives a tax credit for solar and wind energy systems. Here’s the awesome part though:  If your credit is more than you owe in taxes, it doesn’t carry over, you just get a check for overpayment of your taxes.

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.  You only get “store credit” with your utility and will not get a check for excess solar energy generation, so you want to size your system to offset your current or planned load.

One downside, Louisiana does not have a Time-Of-Use rate schedule yet.  I think it’s in the pipe.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

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 DC system in New Orleans would cost about $27,000. 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!

Building Type

Residential

State & County

LA – Orleans

Assumed Average Electric Rate

$0.13/kWh
Assumed Average Monthly Electricity Usage

425 kWh/Month

Your Average Monthly Electricity Bill

$55/Month

Tiered Rates Apply:

No

Time-of-Use Metering Offered:

No

Net-Metering Available:

Yes

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.

Solar Rating:

Good (4.74 kWh/sq-m/day)

Solar System Capacity:

3.00 kW of peak power (DC watts)

Roof Area Needed:

225 sq-ft

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.

Assumed Installation cost:

(before rebates, incentives or tax credits)

$27,000 assuming $9 /watt DC

LA State Tax Credit/Deduction (50% of net system cost) (Maximum of $12500)

($12,500)

Federal Tax Credit:

(Installation type: Residential )

($8,100)

YOUR ESTIMATED NET COST:

$5,400 (pretty cheap, huh?)

SAVINGS & BENEFITS

Increase in Property Value*:

$9,000

Exempt from Property Tax:

YES

Accelerated (5 yr) Depreciation:

(Installation type: Residential )

No

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!

$600

Average Annual Utility Savings:

(over 25-year expected life of system)

$1,078

   
Years to Break even:

(Includes property value appreciation)

5.5 Years

CONSENSUS

The Louisiana legislature has promoted clean energy big time. It seems they’re spearheading a whole new market considering all the reconstruction that needs to be done. These incentives for installing solar electricity and hot water systems are going a long way toward reinvigorating the local economy. Now is the time to get moving on solar power. Get a quote below! laissez les bons temps rouler!

Click here to get hooked up with a local solar installer for your home or business 

Read the 44 brilliant comments below or add yours!

Pingback on April 24th, 2008.

[...] 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 [...]

chris Identicon Icon chris
Comment on May 19th, 2008.

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.

Comment on May 19th, 2008.

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.

ken Identicon Icon ken
Comment on June 2nd, 2008.

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

butler ives Identicon Icon butler ives
Comment on June 2nd, 2008.

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.

butler ives Identicon Icon butler ives
Comment on June 2nd, 2008.

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

Tina Identicon Icon Tina
Comment on June 3rd, 2008.

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?

John Identicon Icon John
Comment on June 8th, 2008.

When are solar power companies going to move from panels to the commercially available roll on solar films?

Comment on June 14th, 2008.

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.

Ed Identicon Icon Ed
Comment on June 15th, 2008.

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.

Rick Identicon Icon Rick
Comment on June 23rd, 2008.

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.

Comment on June 23rd, 2008.

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

Comment on June 23rd, 2008.

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

James Thomas Identicon Icon James Thomas
Comment on July 10th, 2008.

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

Comment on July 22nd, 2008.

South Coast Solar is the solar provider for my environmental consulting firm:

Phoenix Environmental Group
http://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.

Darrin Butler Identicon Icon Darrin Butler
Comment on July 23rd, 2008.

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.

Pat Hazlip Identicon Icon Pat Hazlip
Comment on August 14th, 2008.

My annual electricity cost are now at 4000.00 average . I live in Ferriday LA 71334 and my home is about 3400 square feet living space. Is there such a thing as a whole house system. Seems if I save 4000 annually plus the tax credits it may be worth it to do it. Pat Hazlip

Chester Chesbro Identicon Icon Chester Chesbro
Comment on November 2nd, 2008.

We live in Monroe, LA. Do you work in northeast LA?

Pingback on November 3rd, 2008.

[...] Louisiana [...]

Comment on November 12th, 2008.

For more info:

http://www.gosolarlafayette.com

Comment on November 12th, 2008.

Is this SCS site?

Comment on November 12th, 2008.

Collin,

What is SCS?

john Identicon Icon john
Comment on November 18th, 2008.

What about consumer financing? What if you don’t have equity in your home ? Is there a company that will do direct lending ? If so, what is the name of the company ?

JR Identicon Icon JR
Comment on December 10th, 2008.

Butler,
The Energy Information Administration predicts energy cost will decrease year over year between now and 2015. If you are going to advertise South Cost on this board, make sure you are offering your customers a proper economic analysis.

Jeff,
Thin Film in the photovoltaic industry does not refer to solar laminate. It refers to 2nd generation Copper-Indium products that will drastically reduce solar material costs. Some manufacturers also use it to refer to amorphous polysilicone and nickel based modules which have some decrease in material costs.

All,
The solar industry experienced impressive product changes in 2008, which will continue into 2009. If you need specific advice on what solar products are best for Louisiana’s rebate program, I am happy to help. My email is jcromer@greencityaustin.com.

Comment on December 16th, 2008.

JR,
One of the products we sell is called “Thin Film” by the manufacturer so that’s why we call it that. See http://www.uni-solar.com/

The Department of Energy website is estimating a 10% annual increase in energy costs. I guess you can predict whatever you want.

If your company needs any product give us a shout! http://www.gulfsouthsolar.com

anne Identicon Icon anne
Comment on January 13th, 2009.

have there been any solar arrays installed in louisiana, not associated with a specific business or building. an array for the sole purpose of selling energy back to the grid??

Cece Identicon Icon Cece
Comment on January 13th, 2009.

Just to let you know, the net-metering rule for commercial has a limit now of 300kw. Here is a link to a news article about it http://blog.nola.com/tpmoney/2008/08/the_state_has_increased_the_ma.html.

wsurrette Identicon Icon wsurrette
Comment on February 19th, 2009.

if you can not sell the over produced energy for cash why bother?

john Identicon Icon john
Comment on February 27th, 2009.

When you pay your electric bill you pay them cash. The more power they have to use from your system the less cash you have to pay them. The main reason they give you a credit instead of cash is because you will usually use more power from them than they will from you, unless you have a large stand alone system, which you don’t have.

Cheri Vincent Identicon Icon Cheri Vincent
Comment on March 2nd, 2009.

My house is approx. 1800 sq.ft. I had my electric company fax me my monthly usages for last year. The maximum monthly KWH was 3899 and 128 KWH/Day. What size system would I need and What kind of cost am I looking out? Do I file for the rebates or do you file for them and have them sent directly to you?

Rick Rushing Identicon Icon Rick Rushing
Comment on March 11th, 2009.

I have a concern in the MATH being used in these examples. The above cost analogy uses a “federasl tax credit” of $8100 and they say your out of pocket net will be $5400. Isn’t a tax credit an amount you take off your taxes at the end of the year, an amount you don’t pay taxes on? If so, then then the MATH should be a net of $13,500 and a tax break of $8100 you don’t have to pay taxes on at years end.

Mr E. Max Identicon Icon Mr E. Max
Comment on April 7th, 2009.

Mr Rushing your on the right track…
But i will bet that you will pay the whole bill then get your percentages, when you can pry them from their cold dead hands…
Also I agree with you I feel we should be given cash for the entergy we produce not a credit if and when we use it… and if we are suppling them we also should not be charge the default fee for being connected… Now to be fair we should only collect the current wholesale rate for the excess produced.
e…

Pingback on April 13th, 2009.

[...] Louisiana [...]

Keith Identicon Icon Keith
Comment on April 19th, 2009.

I was giving consideration to solar instead of natural gas generator for storms. My house is 2600sq.ft. and mother in law apt. in back is 500sq.ft. I’d need 22kw. With tax incentives where they are and cost no way. Plus I guess panels are too fragile. Are tax breaks a one time thing or can you get additional tax breaks next year if you expand system?

Jack Identicon Icon Jack
Comment on May 19th, 2009.

I agree Keith. Solar for alternative energy is great, but not good as a power outage alternative. You would need a very large system with a battery back up hybrid inverter for it to work. A net meter type solar system would not function during a power outage because it does depend on the grid.

Scott Mahoney Identicon Icon Scott Mahoney
Comment on May 20th, 2009.

Whenever additional incentives such as cash rebates, prizes or gift certificates are offered in addition to the tax credit, the eligible cost must be reduced by the value of the incentive received.

Comment on May 30th, 2009.

If you wish to be able to use the Solar system when the Grid system is down you will need a battery system, a charge controller, an off grid inverter and at least a manual switch to disconnect from the Grid. Most people dont want to spend the extra money.

Henry Identicon Icon Henry
Comment on June 19th, 2009.

I have 100 acres of farm land. Can I put in several acres of solar panels and sell excess to utility company?

Bart Identicon Icon Bart
Comment on July 1st, 2009.

I am considering installing a solar powered attic fan to aid in ventilation of my residential attic space. It seems the fans(either the fan/solar panel combo unit or separate pieces for conversion) cost around $300-400. I’m more saavy with DIY handywork than I am with taxes. I was wondering if it is a simple thing to do with claiming it on my taxes? Is it like getting half of the cost paid for? Is it worth the investment as my roof does have passive ridge vents? I do have a spare vent that looks like a good place to convert with inside mounted fan and an a roof top solar panel. Thanks for any input.

Michael Xu Identicon Icon Michael Xu
Comment on July 9th, 2009.

I am not sure your math. $27,000-12,500-8,100=6,400; how do you get $5,400?

The electrical bill is average $55/month assumed, $55×12=$660/yr, how do you get $600 for the first year? and $1,078/mon during 25 year life span? At the begaining you said 20 year to pay its self, how you calculated? why at the end you said 5.5 year to breakeven? How much interest you assumed for the invest? I am interested in solar, but want to have a convencing math for basis. Thanks!

patrick Identicon Icon patrick
Comment on July 16th, 2009.

Is the Louisiana state tax credit for solar applied to the total installation costs or only the installation costs minus the federal 30% credit. The estimator on the La. Clean Tech site took off the 30% before calculating the credit.

Pingback on July 31st, 2009.

[...] http://www.solarpowerrocks.com/louisiana/ [...]

Bill Identicon Icon Bill
Comment on October 28th, 2009.

In the future, when I have a roof replacement/repair, can the panels be removed temporarily and at a reasonable cost?

Comment on October 30th, 2009.

Hi Bill,

Yes, you can temporarily remove the panels, re-roof, then reinstall them relatively easily. However, this might cost about $1000-$1500 to do. Before going solar, we recommend having a roof that is no more than 7 years old. If older, it usually makes more financial sense to re-roof before installing the panels. Also, you get better piece of mind knowing everything is top notch above your head.

Before you re-roof, make sure your solar company has agreements with a local roofing company so that you’ll get double warranty in the extremely rare event of a leak. Sometimes, the solar warranty can void the roofer warranty and vice versa. It’s a mess you want to avoid.

Comment on November 9th, 2009.

Here’s how I see it: Solar is an affordable option because it enjoys generous incentives. Residential systems can earn up to an 80% tax credit – 30% federal and 50% state. Plus, enjoy a 5-year accelerated depreciation scenario, and the savings you’ll get from not paying the utility kinda make it a no-brainer, don’t you think?

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