Solar Panels in Louisiana: Costs and Incentives in 2024 – NerdWallet

The everyday value of a house photo voltaic panel system in Louisiana was $37,053 within the second half of 2023 earlier than incentives, in line with knowledge from EnergySage, a photo voltaic and residential power product comparability market.

Scorching, humid summers are widespread in Louisiana, and air con use can contribute to excessive electrical energy payments. Photo voltaic panel techniques can offset a few of these prices. Nevertheless, in comparison with many different states, most of Louisiana has a decrease payback charge for electrical energy bought again to the grid, which decreases long-term financial savings and may make photo voltaic a much less cost-effective possibility.

Louisiana’s common value per watt for residential photo voltaic panels is $3.10. This was barely increased than the nationwide common of $2.96 within the second half of 2023. Photo voltaic panel techniques are barely bigger than common in Louisiana at 12kW in comparison with the nationwide common of 11.6kW.

In some states, you could be required to pay for infrastructure upgrades your utility firm deems mandatory for activating your system. This occurs extra in rural zones the place grid tools hasn’t been up to date shortly. In Louisiana, giant interconnection expenses for upgrades are uncommon.

Shopping for a residential photo voltaic system in money is an possibility for some. Nevertheless, many can not afford photo voltaic panels with no mortgage, and that’s lowering demand in Louisiana for photo voltaic panel techniques. Between the primary half and second half of 2023, costs per watt in Louisiana have held regular. However for these taking out loans, rates of interest can enhance general prices.

“Rates of interest are actually excessive proper now, so financing residential photo voltaic is difficult, and may eat into among the financial savings,” says Rebekah Olinde, a photo voltaic marketing consultant for South Coast Photo voltaic, a photo voltaic installer in Louisiana. “I’ve seen the influence of these rates of interest each on financial savings projections and on decision-making.”

In most components of Louisiana, there’s now not one-to-one internet metering, a billing system that enables owners to promote extra photo voltaic generated from photo voltaic panels at retail charges, making photo voltaic more cost effective.

“The web metering coverage for many of Louisiana modified in 2019. For any system put in after that, extra photo voltaic is now exported again to the grid on the avoided-cost charge, as a substitute of on the retail charge,” says Olinde, noting there are some exceptions.

The avoided-cost charge, or wholesale charge, is far decrease than the retail charge. The brand new coverage [0]

The retail charge and the avoided-cost charge change over time. The Public Service Fee of Louisiana affords a schedule of avoided-cost charges for various power suppliers, as of early 2024. These charges are all below 3 cents per kilowatt-hour. The retail value of electrical energy is far increased at about 13 cents per kWh, primarily based on EnergySage knowledge.

Like many states, Louisiana doesn’t issue photo voltaic panels into the valuation of houses for property tax functions. [0]

Some type of power storage is a standard characteristic of residential photo voltaic panel techniques in Louisiana. In areas the place full internet metering isn’t accessible, a photo voltaic battery can enable owners to retailer and use extra energy as wanted, lowering their electrical energy payments. It can be used as a supply of backup energy within the case of an influence outage. In Louisiana, a typical photo voltaic battery prices $13,995 after the federal photo voltaic tax credit score, in line with EnergySage knowledge from the second half of 2023.