Louisiana has historically lagged behind when it comes to solar energy adoption. But with high electricity bills and ample sunshine, residential solar panels can save homeowners thousands of dollars over their lifetime. This guide breaks down everything you need to know about the costs, savings, and available rebates for installing solar in Louisiana.
The Cost of Solar Panels in Louisiana
At around $2.38 per watt, Louisiana boasts some of the lowest solar panel equipment costs in the U.S. For a typical 6 kW system, expect to pay about $14,280 before any incentives or rebates. Louisiana‘s below-average installation costs coupled with high electricity usage make solar an attractive option.
Of course, your actual system size and costs will depend on factors like your location‘s sunlight levels, installer choice, and the specific components used. Cities like Alexandria average only 4.3 peak sun hours per day, while New Orleans sees up to 5. Locations with less sunlight need larger systems to produce the same output. Choosing national over local installers may also increase costs despite more experience.
Compared to neighboring states, Louisiana remains a solar bargain. Arkansas comes closest at $2.64/W, while Mississippi is $2.93/W and Texas jumps to $2.97/W on average.
How Much Solar Do Louisianans Need?
With average monthly electricity usage around 1,200 kWh and 4.92 peak sun hours per day statewide, most Louisiana homes need an 8 kW solar array to offset their entire usage. You can calculate your specific system size by dividing your average daily use (in kWh) by your location‘s sun hours.
For example, if your home uses 45 kWh per day and your city sees 5 peak sun hours, your needed system size is 45 / 5 = 9 kW. Targeting a system size closest to your historical electricity demand ensures solar can supply nearly all your home‘s needs.
Factors That Impact Solar Panel Costs
Insolation – The most impactful factor on system sizing and costs is the average peak sunlight where you live. Northern cities like Shreveport average 20% less sun than southerly New Orleans. More sunlight means smaller, less expensive systems.
Equipment – Crystalline silicon panels dominate today‘s market, with monocrystalline being slightly more efficient (and costlier) than polycrystalline alternatives. Louisiana‘s good sun levels mean lower cost poly panels often suffice.
Your Rooftop's Condition – Factors like roof age, shading, and orientation also play a role. East/west facing roofs need different system designs than unshaded southern exposures that maximize sunlight capture.
Installer Choice – Louisiana has over 30 certified solar installers, but company size, experience, equipment quality and warranties vary. Bigger national companies may cost more but offset that premium with scaled purchasing power. Always compare multiple installer bids.
Louisiana‘s Top Solar Installers
Some of the most reputable solar installers in Louisiana include:
Solar Alternatives Inc. – Headquartered in New Orleans with 16+ years experience and licensed, certified technicians for worry-free installations. Offers 25 year workmanship warranty on all installs.
Sunpro Solar – National installer with Louisiana operations headquartered in Mandeville. Ranked #1 in customer experience surveys and offers complete system maintenance packages.
South Coast Solar – Family-owned business operating across Louisiana for over 15 years. Specializes in customized systems for individual homes using high-end equipment from LG, Q Cells and Enphase.
When choosing installers, look for established local track records, robust warranties, and credentials like NABCEP solar certifications to ensure quality.
How Much Money Does Residential Solar Save in Louisiana?
With the average Louisiana home spending $1,686 per year on electricity, a properly-sized solar array can lead to thousands in lifetime savings:
- For a 6 kW system costing $14,280 ($9,996 after federal tax credit), the payback period is just 8.5 years
- With a useful lifespan of 20-25 years, total lifetime savings range from $19-28k
These savings calculations use net metering, which gives solar customers bill credits for excess power fed to the grid. This effectively spins the home‘s electric meter backwards and offsets nighttime/winter usage at retail rates.
While payback periods vary across locations and array sizes, solar consistently saves the most money for homeowners with high existing electric bills. By generating your own power, your utility costs decrease dramatically.
Louisiana Solar Incentives and Rebates
Unfortunately Louisiana offers minimal solar incentives beyond the federal tax credit. With no renewable portfolio standard requiring utilities to add green energy, policies favor fossil fuels. But a few options can still defray purchase costs:
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Federal Investment Tax Credit – The 30% federal ITC reduces upfront system costs by nearly $4,300 on average. This policy remains in effect through 2032 before being phased down over time.
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Solar Equipment Property Tax Exemption – LA exempts the added value solar installs provide from state property taxes. This avoids an annual bill increase to cover your new system.
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Net Metering – Louisiana‘s net metering policy lets solar customers get 1:1 bill credits for excess generation fed to the grid. This makes solar dramatically more cost-effective.
See our Complete Guide to Louisiana Solar Incentives for all the latest rebates and policies.
Solar Panel Costs vs Other Louisiana Renewables
For homeowners weighing solar against other renewable energy options, costs vary widely:
- Solar Photovoltaics: $2.38 per Watt (6 kW system = $14,280)
- Geothermal Heat Pumps: $7,500 – $35,000 depending on home size
- Wind Turbines: $15,000 – $55,000 for pole/tower mounted residential systems
- Solar Hot Water Heaters: $3,000 – $7,500 installed depending on panels vs tubes
Among these alternatives, solar PV provides the best return on investment given Louisiana‘s conditions. Abundant sun, high bills, and flexible sizing make grid-tied systems economical for most homeowners seeking energy savings.
Solar Outlook in Louisiana: The Time is Now
With some of the best solar payback periods in the Gulf Coast region, Louisiana homeowners can benefit by locking in electricity rates now before they potentially climb. Utility-scale projects like the LA3 solar farm show commercial promise as well.
As solar costs fall further and Louisiana‘s energy needs grow in the coming decades, expect to see government policies warm to the idea of incentivizing small-scale renewables too. For homeowners, that makes 2023 an opportune time to explore how an array can save you money for decades to come.
