Louisiana Solar Power Rebates, Tax Credits, and Incentives

[...] 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

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.

David Llorens

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

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

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

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

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

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

Jeff Shaw

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

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

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.

butler ives

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

butler ives

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

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

Adrian Bruneau

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

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

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

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

[...] Louisiana [...]

collin

For more info:

http://www.gosolarlafayette.com

collin

Is this SCS site?

Dan Hahn

Collin,

What is SCS?

john

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

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.

jeff

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

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

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

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

john

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

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

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

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…

[...] Louisiana [...]

Keith

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

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

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.

Murray

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

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

Bart

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

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

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.

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

Bill

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

Dan Hahn

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.

Louisiana Solar

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?