Louisiana solar 101: must read before you buy solar panels

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.

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.

A solar PV system installed in a home increases its value by about 4%, says the 2019 Zillow report. This would mean higher property taxes in other states, but not in Louisiana. According to the state’s legislature, 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.

The Home Energy Loan Program allows homeowners in Louisiana to take a five-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.

It is legal to install solar panels on your house. What’s more, in 2010 Louisiana enacted a special law to protect this right. The act states that no entity can unreasonably restrict the installation of solar equipment. It basically guarantees an owner's right to use solar devices, but doesn’t supersede building restrictions or other limitations provided by the Civil Code. This law doesn’t apply to historic districts or landmarks.

Something you should remember:

• The state doesn’t allow local governments, businesses or homeowners associations (HOAs) to unreasonably restrict installation of a solar system in Louisiana.
• Any requirements included in the HOA’s list of rules must not increase the price or decrease the efficiency of a PV system by more than 10%.
• Restrictions can be implemented if your equipment threatens public safety. 
• In Louisiana, installation can only be performed by licensed contractors.
• Any requirements forcing you to hide the system from view will generally violate the law.

Louisiana is one of the most hurricane-prone states in the US. Severe storms bring damage and devastation, cutting people off the utility grid for days. Solar panels are able to withstand most hurricanes, but until Katrina flooded 80% of New Orleans in August 2005, officials rarely talked about renewable energy. After the tragedy that left nearly one million people without electricity for several weeks, the words ‘Cleaner, Smarter’ became a catchphrase. Already in 2009, the EPA Region VI office declared that Louisiana was meeting all federal ozone standards for the first time in its history. According to the Department of Natural Resources, the state now breathes the cleanest air in over a generation. Solar panels help us breathe!