Live in Louisiana and would like to install solar panels, but are worried it will be a very expensive and costly project? Going solar is easier with solar incentives in Louisiana. Here is what the state has to offer.
Key takeaways
- Want to make your home more energy efficient? Louisiana is a good state for installing a solar energy system. And many federal and local incentives and rebates coming in many forms make this option even better, reducing the costs for both companies and homeowners.
- Federal Tax Credit (ITC) is a 30% tax credit on the total cost of solar panel installation.
- All utilities and electric cooperatives are required to offer net metering service. Credits for excess energy sent to the grid are based on the utility's avoided cost.
- Solar equipment on residential buildings or private swimming pools is considered personal property and is exempt from property tax assessments. Property value increases by approximately 4%.
- Louisiana HELP Program (Home Energy Loan Program) is a 5-year loan for energy-efficient home improvements, including solar. Maximum loan of $12,000 (lender may have additional restrictions). Interest rate: 2% on half the loan (from the Department of Natural Resources), market rate on the other half (from the lender). Requires Louisiana residency and property within the state. Home upgrade must be approved by an Energy Home Rater after an energy audit.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Sell excess electricity with net metering program
Net metering allows residential solar owners to put the excess electricity onto the utility grid instead of storing it with batteries. The Louisiana law requires that all utilities and electric cooperatives have this program implemented. When you sell your solar power in this manner, you receive an electricity bill reduction based on the utility’s avoided cost. For every kWh you contribute to the grid, you get a certain amount of money based on the Avoided Cost Rate that is updated annually by the utilities.
Freeze your property tax with Renewable Energy Source Exemption
A solar PV system installed in a home increases its value by about 4%, says the Zillow report. This would mean higher property taxes in other states but not in Louisiana. All solar equipment installed on a residential building or a private swimming pool is considered personal property, meaning that its value can’t be added to the value of such a building or pool.
4%
this is how much solar panels increase the value of your house
Get a solar loan at 2% interest rate with Louisiana HELP Program
The Home Energy Loan Program allows homeowners in Louisiana to take a 5-year loan to make energy-efficient improvements to their homes. The loan may be contracted via lenders participating in the program. The amount is limited to $12,000, but the lender can set additional restrictions. Half of the sum is provided by the Department of Natural Resources at 2%, and the other half by the lender at the market rate. To qualify, you must be a resident of Louisiana and your property must also be located inside the state. Check the full list of limitations to make sure you can participate. The house upgrade has to be approved by an Energy Home Rater during an energy audit.
Top 10 myths about solar
Let's talk about solar panels in a simple way and clear up some of the common wrong ideas people have about them. Knowing the real facts will help you decide if solar power is a good choice for your house.
1. Myth: Solar panels only work when the sun is shining really brightly all the time
That's not quite right. Solar panels do work best when the sun is strong. But they don't need the sun to be super bright all day long. They make electricity from daylight, not just direct sunshine. So, even when it's cloudy, they can still make some power. Plus, the newest solar panels can even work a little better when it's cool outside. So, no matter if you live where it's sunny a lot or where it's often cloudy, solar power can still be helpful.
2. Myth: Putting in solar panels costs way too much money
It can seem like a lot of money to put in solar panels at first. But you need to think about the money you'll save over many years. The price of solar panels has gone down a lot lately, so they cost less now. Also, there are ways to get help paying for them. The government might give you money back or let you pay less in taxes. And, solar panels can make your electric bill much smaller, or even go away completely. Over the many years that solar panels last, usually 25 years or more, the money you save can be much more than what you paid to put them in. Also, if your system is connected to the power lines, you can sometimes sell extra power back to the electric company and save even more money.
3. Myth: You have to fix solar panels all the time
Solar panels don't need a lot of fixing. They don't have parts that move, so they don't break down very often. Usually, all you need to do is clean them now and then to get rid of dirt or dust that might block the sunlight. Often, the rain will clean them for you. And, the newest solar panels are made to handle bad weather, like hail, snow, and strong winds, so you don't have to worry about them breaking easily.
4. Myth: Solar panels will mess up my roof
If someone who knows how to do it puts the solar panels on your roof correctly, they won't damage it. Good workers use special ways to put the panels on safely and make sure no water can get in. Sometimes, solar panels can even help protect your roof from the weather.
5. Myth: Solar panels don't make enough power to be worth it
Solar panels are much better at making electricity now than they used to be. It's true they can't turn all the sunlight into electricity, but they can turn a lot of it. And scientists are always working to make them even better. This means solar power is becoming more and more useful for homes.
6. Myth: If I get solar panels, I won't need the electric company anymore
For most people, putting in solar panels means connecting them to the regular power lines. This lets you use electricity from the power company when your solar panels aren't making enough, like at night or when it's cloudy. And when your solar panels make extra power, you can often sell it back to the electric company. You would need very big and expensive batteries to store enough power to completely go off the regular power lines.
7. Myth: Putting in solar panels takes forever and is super hard
Putting in solar panels is usually not too hard, especially if you have people who know what they're doing to help you. From getting the papers you need to putting the panels on your roof and hooking them up to your house's electricity, it usually only takes a few days. Professional workers take care of all the complicated stuff.
8. Myth: Solar panels look ugly
Older solar panels might have looked big and not very nice, but the newest ones look much better. Many companies make solar panels that blend in well with different kinds of houses. You can also put solar panels on the ground if you don't want them on your roof.
9. Myth: If you rent your house, you can't use solar power
While people who rent usually can't put solar panels on their own roofs, they can still use solar power through programs where lots of people share a big solar farm. These programs let you pay to use some of the power from the big farm, and you get money off your own electric bill.
10. Myth: It's hard to sell your house if you have solar panels
Studies have shown that houses with solar panels often sell for more money and faster than houses without them. Solar panels are seen as a good thing to have, and they can make your house more attractive to people who want to buy it.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in Louisiana
SHOP SOLAR PANELSYears of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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