Louisiana is one of the many jewels of the South. You know that Louisiana has a lot to offer when it comes to both natural beauty and history. Preserving Louisiana for generations to come is of key importance.
Plus, wouldn’t you like to spare your wallet a little pain when your utility bills come around? How can you do this?
Well, going solar in Louisiana is a fantastic way to do both.
Solar Power in Louisiana Simply Makes Sense
With as much sun as Louisiana receives year-round, going solar in Louisiana is a natural choice. How much money do you already spend on your utility bills?
It’s also a great way to become more self-sufficient. And considering all the environmental wonders that Louisiana has to offer, using a solar panel is a great way to help preserve the bayous and forests of Louisiana for generations to come.
Unfortunately, Louisiana doesn’t really have a RPS plan. A RPS, or renewable portfolio standard, calls for a certain percentage of energy to be produced by renewable sources. Most states call for these RPS goals to be met by a certain year.
Louisiana, unfortunately, doesn’t have an RPS plan at all, which is especially unfortunate considering Louisiana’s natural treasures.
Louisiana RPS Carve Outs
Because Louisiana doesn’t have an RPS plan, there are no solar carve outs.
This also provides utility companies with appropriate incentive to begin encouraging residents to produce their own solar energy.
You Can Save Money By Going Solar in Louisiana
Think of how much money you already spend on your electricity bills. By installing a solar panel system, you can help shave down on your already high utility bills by producing your own energy.
Over the lifespan of the system, depending on your own unique situation, you may be able to make a profit off of the energy you’re producing and the system may pay for itself within about six years.
Louisiana Case Study
While there may not be an RPS plan in place, this certainly hasn’t stopped Louisiana from adopting solar energy.
Let's take an example of a 5Kw system, which is the average size system for most homeowners. A system like that will cost you about $20,000 dollars in the state of Louisiana. Buying or Leasing, that's a big number.. but here comes the fun part. REDUCING that amount.
- First, we need to subtract the state tax credit. The maximum you can? A whooping $10,000 dollars. Al of a sudden, your investment just reduced in half..
- Next, the Federal tax credit, which after subtracting from the full $20K price, will enable you to reduce your system by another $6000 dollars. We are now talking about $4000 dollars of investment! - Don't forget to add your savings in year one, take into account the rise in your home value (in the range of $15,000 added value!)
- The return on investment? 6 years. That's right.
The example above is a REAL example from REAL people.
A quick chat with friendly installers can make all the difference. And it's FREE, with no strings attached. Why not see for yourself ?
Here are couple of other Cases:
New Orleans was recently named a Solar America City. In a relatively short period of time, New Orleans was able to increase their installed PV capacity to almost 800kW by 2010.
The Island Golf Club, located in Plaquemine, Louisiana, adopted solar energy and geothermal energy. What they found was that in just a year, the club was able to reduce their utility costs by about 54% in 2009.
Don’t Wait to Purchase Your Solar System
Don’t wait to purchase your solar system. When you consider how much money you could be saving on your utility bills, adopting solar energy to produce your own electricity is a natural choice.
It’s a great way to become less dependent on the energy grid. A solar panel may be a hefty investment but over the long-run it can provide you with great benefits.
Louisiana Homeowner Solar Incentives, Rebates and Tax Breaks
Lower Your Utility Costs
On average, homeowners in Louisiana actually pay about $.08/kwh. While this is significantly lower than the national average (which is about .13/kwh), this won’t always be the case due to Louisiana’s current dependence on fossil fuels.
Adopting solar power can still help you shave off your utility bills. On average, many people find they can save an average of $50 a year by switching to solar power (assuming the solar panel system is leased).
Louisiana is unfortunately lacking when it comes to offering people a solar rebate. Part of this may be due to the fact that Louisiana does not have an RPS/renewable portfolio standard plan in place.
This is part of the reason why high RPS goals are favorable. It gives utility companies incentive to try to produce energy from solar panel systems, most of which would be owned by private citizens.
While Louisiana may not offer a solar rebate program, they do offer one of the best state-wide tax credits in the nation.
About 50% of the system’s initial cost is covered as a tax credit. These credits can either be applied to what you owe in taxes or, if you owe less than what you pay on taxes, you can receive a nice check that may cover a significant portion of the solar panel system’s initial cost.
Keep in mind that you can still take advantage of the 30% Federal tax credit. This is eligible for systems installed before or in 2022.
Property Tax Exemptions
Thankfully, Louisiana also offers property tax exemptions. As you may know, solar panels can add thousands of dollars in potential value to your home.
Unfortunately, Louisiana does not offer a sales tax exemption on installing a solar panel system. This means you’ll still need to pay an additional 4% on your solar panel system purchase so budget carefully before leaping in.
Many states offer a sales tax exemption, if they usually have a sales tax in the first place, on purchasing a solar panel system.
By offering a sales tax exemption on a solar panel system, this could be a fantastic way of encouraging more people to adopt solar panel systems.
Louisiana Financing Options and Getting Solar for Zero Down
Solar energy is a fantastic investment that can help you save on your utility bills.
But sometimes, not everyone is equipped to make that initial hefty investment. Luckily, you can consider leasing a solar panel system, which will enable you to obtain one for zero money down.
Is It Worth Investing in Residential Solar Energy in Louisiana?
To answer our own question, of course. Leasing or buying a solar panel system is a worthy investment.
By buying a system you’ll be able to personally take advantage of tax credits and tax exemptions. Either way, you’ll be able to save big on your utility bills depending on your situation plus you’ll be able to benefit the environment.
Your solar panel system may be able to pay for itself within about six years. Over the lifespan of the system, you can turn a profit of about twenty grand (at least on average).
The lifespan of a solar system is estimated to be about 25 years, which you should keep in mind when deciding to buy or lease a solar panel system.
But the option that works best for you depends on your own unique situation and what you expect to gain from this investment.
How it Works
Leasing a system allows you to obtain a solar panel system for zero money down. This is fantastic news since this means you won’t have to make a hefty initial payment.
After all, not everyone has $25 thousand dollars (or more) to burn.
By signing up for a lease, you’ll allocate your roof space for a solar panel system. You’ll then only need to make payments on whatever electricity you’re still drawing off the grid and your monthly lease payment.
Depending on the terms of your lease you may be able to purchase your solar panel system once the lease expires. Most solar leases last about twenty years so keep this in mind when deciding to lease or buy a solar panel system.
When deciding whether to lease or buy a solar panel system, consider the incentives available to you if you buy the system.
Louisiana has, after all, one of the best statewide tax credits and taking advantage of this in certain situations can help offset the cost of your solar panel system.
While there is no rebate program, both federal and state tax credits along with property tax exemptions can help you easily buy your own solar panel system, making it less of a hefty investment.
Can I Lease the System in Louisiana? Should I Buy it Instead?
That depends on your own unique situation. But generally, most people find the best results when they buy the system if possible, due to being able to take advantage of tax credits and being able to manage the system on their own.
Leasing a system, however, means you’ll be able to benefit almost immediately from the decreased utility bill without having to plunk down thousands of dollars in the initial investment.
Either way, leasing or buying a system gives you the unique opportunity to begin taking advantage of all the power that the sun offers and grow less dependent on the general utility grid.
What About Louisiana Net Metering?
Luckily, you can take advantage of the net metering program if you live in Louisiana. Net metering that requires that you hook your system up to the general electric grid.
Not only does this monitor your solar panel system’s energy output but you can later sell back surplus energy to the utility companies.
In Louisiana specifically, you can redeem surplus energy as credits on your utility bill. These credits will never expire. At the end of the year, if these credits go unused, your utility company may cut you a check to compensate you for the surplus energy you produced.
Louisiana’s net metering system is similar to what you might find in other states, so no surprises here.
Louisiana may not be a leader in solar energy development but it still has a lot to offer when it comes to considering solar energy.
Louisiana’s state tax credits, for instance, are some of the best in the nation, period. Combine that with the federal tax credit and many people find that buying a solar panel system is easy.
Within about six years, many people find that their solar panel systems can pay for themselves.
While Louisiana has a lot of work to do, it has a fantastic foundation for adopting solar energy as a strong renewable industry. And you can personally benefit too.
Your wallet will be happier, you’ll be more self-sufficient and you’ll be doing your part to helping keep Louisiana beautiful for generations to come.