Louisiana Solar Information
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#4Louisiana ranks #4 in the USA for savings from installing solar panels
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7146.30 kWhAnnual AC energy output of a 4 kW solar system installed in Louisiana
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6.21 kWhSolar Radiation (kWh / m2 / day)
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13 ¢ /kWhThe cost of electricity today in Los Angeles Dept of Water & Power
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27 ¢ /kWhIf you don't go solar. The forecast average utility price over the next 25 years
Louisiana Solar Facts
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$1.55Average cost of a 4kw solar power system in 2019.
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5 yearsAverage system payback period.
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$56,101.82Average lifetime savings.
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5 ¢ /kWhLevelized cost of solar energy.
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5 kWRecommended system size.
The Pelican State of Louisiana is known for Mardi Grass and jazz, for winding bayous and amazing Creole cuisine, but also for a great potential for home solar systems. 6 hours of peak sunlight per day together with the state's solar incentives gives Louisiana a unique possibility to go fully solar.
Louisiana Solar Facts
- The average payback period for solar panels in Louisiana is 12.8 – 17.3 years.
- More than $14,241 can be saved over the 20 years of a solar system’s lifespan.
- 72-98% of electricity needs can be covered by solar energy in Louisiana.
- Solar Power System Cost in Louisiana
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$1.55 per watt
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$7,632.72 total
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5 years
The Cost of Solar Panels in Louisiana
As of December 2020, the average cost of a solar panel installation in Louisiana is around $2.47 - $3.35 per watt. The total cost of a 5kW solar system will not exceed $17,077 after claiming the 26% federal solar tax credit.
How much solar energy can you get in Louisiana?
The amount of solar energy you get depends on the power output of your system, the amount of sunlight that hits the panel and factors such as solar panel placement and shading. Louisiana ranks in the top 20 for peak sun hours received per year out of all states in the country. Power output is a physical solar panel attribute measured in watts (W) and it tells how much energy the panel can produce under ideal temperature (77°F) and sunlight conditions. Most home solar panels’ power output is 250 to 400 watts per 4 hours. As for placement, a solar system that is installed on a south-facing 30-degree pitch roof in Louisiana will generate 1,550kWh per year.
Louisiana Solar Rebates and Tax Credits
Federal solar investment tax credit (ITC) – a governmental perk that allows all solar panel buyers to get a 26% deduction of the installing cost from federal taxes. For example, if your solar system costs $15,000, your tax credit would be $3,900. Deduction will be lowered by 5.0% in 2021 and will be gone the year after unless new legislation is introduced.
Louisiana 50% Tax Credit – this credit offers 50% of the solar system’s initial cost. It can be deducted from your state taxes, or you can get a check if the credit amount is less than what you pay in taxes.
Property tax exemption – in the state of Louisiana all solar panel buyers are 100% exempted from property tax. Even though your solar panels add value to your property and should therefore be additionally taxed, they are exempted from property taxes.
Pros and Cons of Buying Solar Panels in Louisiana
Pros of Solar Panels
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Environmentally sustainable source of energy
Solar panels are a clean and renewable source of energy that can help reduce carbon footprint and greenhouse gases. An average 4kW system will have the same benefit as planting 100 trees per year. -
Cheap source of energy
On average you will pay $0.9/kWh by purchasing energy from your local utility companies in the state of Louisiana, but by purchasing a solar system with an output of 400 watts per 4 hours you will save around $23,390 over the service life of your panels. Also, the local government is becoming more conscious about the impact of fossil fuels, so regulations could drive up energy prices soon. -
Increase in home value
On average, solar panels add $20 of value to your property for every saved $1 on your electricity bill.
Cons of Buying Solar Panels
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Lack of rebates and incentives
Unlike many other states, Louisiana does not offer any rebates or incentives for going solar. The main reason is that the electricity price of $0.9/kWh in Louisiana is lower than the country’s average, and therefore utility companies do not offer any solar rebates.
Is it worth buying solar panels in Louisiana?
Solar energy is a fantastic investment, and plenty of direct sunlight in Louisiana will help you save a significant amount of money. Moreover, in 2020 solar panels remain subsidized by the 26% federal tax credit making them a lucrative deal.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.
System size
- Mini
- Small
- Medium
- Large
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15 x 350 wattsolar panels - +
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15 x 300 wattmicroinverter - +
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2 x 3 800 wattinverter
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$7,632.72Estimated system cost
Excludes 26% Federal Tax Credit.
This price does not include the installation cost. -
5 yearsAverage system payback period
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$56,101.82Estimated utility savings
Example of 4 kW system calculation in Minnesota for electricity bill $100
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13 ¢ /kWhThe cost of electricity today in Los Angeles Dept of Water & Power
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27 ¢ /kWhIf you don't get solar. The forecast average utility price over the next 25 years
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5 ¢ /kWhlevelized cost of solar energy