Louisiana Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows Louisiana homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $16,620 in Louisiana, that's a direct tax credit of $4,986. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

Louisiana does not currently offer a state-level solar tax credit. However, Louisiana homeowners still benefit from the substantial 30% federal ITC, worth $4,986 on a typical 6kW system. Even without a state credit, solar is economically attractive in Louisiana with electricity rates averaging 12.57¢/kWh.

Great news for Louisiana homeowners: Solar energy systems are exempt from property tax assessments. 100% property tax exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with Louisiana's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

Louisiana does not currently exempt solar equipment from state sales tax. This means you'll pay the applicable sales tax on your solar system purchase. However, the 30% federal ITC and other available incentives more than compensate for this cost in most cases.

Net metering policy: Avoided Cost. Net metering at avoided cost rate since 2020 The current system size cap is 25 kW.

Louisiana compensates excess solar generation at the utility's avoided cost rate, which is typically lower than the retail rate. To maximize your savings, size your system to match your daytime consumption and consider battery storage to shift excess production to evening hours.