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The Real Cost of Waiting for Solar Panels in Louisiana

Entergy Louisiana, Cleco increased rates 2–5% annually over the past decade, with a 8% hike this past year. While Louisiana's rate of $0.13/kWh is below average, 5.28 daily sun hours make solar panels in Louisiana financially viable — generating $990-$1,980 in annual savings for a typical household.

To give you a reliable picture, these estimates are built on strictly conservative assumptions: no expired incentives, includes ~4%/yr electricity rate increases (EIA historical avg), Net Billing without battery storage · ~55% self-consumption assumed. While other sites inflate their numbers to close a sale, we show reality — so the savings you see here are savings you can actually count on.

Louisiana Avg. Results by Monthly Bill
Data: September 2026
$7,150
Year 5 Savings
$22,733
25-Yr Net Profit
18 yrs
Break-Even
12.4 kW
System Size
$43,400
Home Value +
~71%
25-Year ROI
Want your exact savings & system size? Enter your ZIP & bill in our calculator. Solar Savings Calculator →

Louisiana Solar Data at a Glance

Louisiana solar panels make financial sense in 2026 despite a below-average electricity rate of $0.13/kWh. The key driver: 5.28 daily sun hours and a 2–5%/year rate increase trend that makes every year of delay more expensive. Solar panels in Louisiana typically pay back in ~18 years.

Sunlight & Climate
State Average5.28 hrs/day
South LA5.2 – 5.4 hrs/day
North LA5.1 – 5.3 hrs/day
Sunny Days per Year Clear-sky days per year (NOAA). Not the same as peak sun hours, which measure solar energy intensity — a state can have fewer sunny days yet stronger usable sun.~217 days
US National Average~205 days

Source: NSRDB (NLR (formerly NREL))

Electricity Rates
LA Avg. Residential Rate$0.13/kWh
National Average$0.18/kWh
LA vs. National Avg-26% lower
Projected Rate Increase~4%/year
Avg. Monthly Bill$184/mo

Source: U.S. Energy Information Administration

Most Louisiana homeowners going solar in 2026 are looking at a gross investment of $24,960 – $48,880 — with returns competitive with the national average. The payback period is longer than high-rate states, but positive over 25 years. The financial case rests on self-consumption savings at $0.13/kWh and rising utility rates.

Typical Solar Panel Installation
System Size9.6 – 18.8 kW
Number of Panels24 – 47 panels
Installation Cost$24,960 – $48,880
Property Tax ExemptNo
Net MeteringNet Billing (Reduced)
Financial Return
Year 1 Savings$990 – $1,980
Monthly Savings$83 – $165
Payback Period~18 years
25-Year Savings$41,229 – $82,459
25-Year ROI~71%
About This Data

Rates from EIA ($0.13/kWh), sun hours from NLR. All figures use real location data and already factor in a 4%/year compounded electricity rate increase — giving you a realistic picture you can actually plan with. Use our free solar calculator for Louisiana to get a personalized ZIP-level estimate.

Data: September 2026

Solar panels Louisiana — aerial view of a suburban neighborhood with rooftop solar at sunset
Louisiana — solar panels delivering real savings in 2026

Why Solar Panels in Louisiana Make Financial Sense

  • At $0.13/kWh, Louisiana's rate is below average — but 5.28 daily sun hours and a 2–5%/year rate increase trend still make solar panels in Louisiana a sound long-term investment
  • 5.28 peak sun hours daily — +17% more than the US average — which directly increases the kilowatt-hours a Louisiana system produces per panel
  • Rooftop solar panels Louisiana boost Louisiana home values by an estimated $15,000 – $25,000 (Zillow/NLR data), improving overall ROI even without a formal property tax exemption
  • Full retail net metering means every exported kilowatt-hour from your solar panels in Louisiana earns a full credit at $0.13/kWh, maximizing year-round financial return

Research from Zillow and NLR shows solar panels in Louisiana boost home values by roughly $3.50/installed watt — $15,000 – $25,000 for a typical Louisiana system. NLR and SEIA data consistently show solar panels in Louisiana delivering positive lifetime returns, particularly as utility rates climb. Use the Solar Savings Calculator to model the exact return for your home.

Top Solar Cities in Louisiana

CityPeak Sun HrsAvg. RateEst. 25-Yr Net Profit*Est. Payback
New Orleans 5.28 hrs/day $0.13/kWh $21,693 18 years
Baton Rouge 5.18 hrs/day $0.11/kWh $14,413 21 years
Shreveport 5 hrs/day $0.13/kWh $20,653 19 years
Lafayette 5.15 hrs/day $0.10/kWh $10,253 22 years
New Orleans
Peak Sun Hrs5.28 hrs/day
Avg. Rate$0.13/kWh
25-Yr Net Profit$21,693
Baton Rouge
Peak Sun Hrs5.18 hrs/day
Avg. Rate$0.11/kWh
25-Yr Net Profit$14,413
Shreveport
Peak Sun Hrs5 hrs/day
Avg. Rate$0.13/kWh
25-Yr Net Profit$20,653
Lafayette
Peak Sun Hrs5.15 hrs/day
Avg. Rate$0.10/kWh
25-Yr Net Profit$10,253

*$200/month bill, south-facing roof. NLR + EIA data. Use our free Solar Savings Calculator for your exact address.

Solar Panels Louisiana vs. US Average

FactorLAUS AverageLA Advantage
Peak Sun Hours5.28 hrs/day4.5 hrs/day+17% more
Solar Payback Period~18 years10 years (US avg)8 yrs slower
25-Yr Net Profit*$22,733$71,870$49,137 less
25-Year ROI*~71%~256% (US avg)-185% lower
FactorLAUS Average
Peak Sun Hours
5.28 hrs/day
4.5 hrs/day
Solar Payback Period
~18 years
10 years
25-Yr Net Profit*
$22,733
$71,870
25-Year ROI*
~71%
~256%

*$200/month bill reference. Sources: NSRDB (NLR), EIA.

While Louisiana's rate of $0.13/kWh is below the national average, 5.28 daily sun hours and a 2–5%/year rate increase trend make solar panels in Louisiana a worthwhile long-term investment compared to other lower-rate states.

Louisiana family reducing electricity bills with rooftop solar panels
Louisiana family home with solar panels

How Much Can a Louisiana Family Save with Solar?

Most Louisiana families save $990-$1,980 per year with solar panels. Homes with AC running nearly year-round in Louisiana's climate see strong alignment between solar production and peak cooling loads — exact savings depend on Entergy or Cleco territory.

Solar Incentives in Louisiana (2026)

Net Metering: In Louisiana, the export credit rate is below retail — the system assumes 55% self-consumption. Adding battery storage increases self-consumption from ~55% to ~85% — potentially +$396/year (~$9,900 over 25 years). See the Battery Sizing Calculator.
Louisiana Solar Incentives — 2026 Status
Federal Tax Credit (ITC) Expired Dec 31, 2025 (OBBBA)
Louisiana Property Tax ExemptionNo
Sales Tax ExemptionNo
Louisiana State Tax CreditNone ($0)
Net Metering (NEM)Net Billing (Reduced)

Solar Incentives →

Next Steps: Going Solar in Louisiana

  • 1
    Calculate your savings Use our Solar Savings Calculator to estimate your exact system size, cost, and payback for your Louisiana ZIP code.
  • 2
    Learn the basics New to solar? Our Solar Basics guide covers how panels work, sizing, and what to expect before you get quotes.
  • 3
    Check your incentives Review the property-tax, sales-tax, and net-metering programs available in Louisiana in our Solar Incentives guide.
  • 4
    Get dealer & installer quotes Compare pricing, financing terms, and whether the installer is registered for any Louisiana rebate program before you sign.

Louisiana Solar FAQ

Yes, but sizing matters. With a below-retail export rate, the return depends on how much of your own power you actually use. Typical payback is ~18 years.

Most homeowners save $990-$1,980 a year at $0.13/kWh and 5.28 peak sun hours — $41,229 – $82,459 over 25 years. Run your ZIP through our Solar Savings Calculator.

A typical Louisiana home needs 9.6–18.8 kW (24–47 panels), costing $24,960–$48,880.

Net metering here is Net Billing (Reduced) — exports earn a below-retail rate, so battery storage adds the most value.

Often worth it. Louisiana pays a below-retail rate for exported power, so storing it for your own use recovers value you would otherwise give away.

The federal tax credit (Section 25D) expired December 31, 2025. Net metering: Net billing (below-retail export rate) — self-consumption is the primary value driver. Full list: DSIRE.

Solar in Nearby States

Electricity rates and sun hours vary by region — see how solar compares in neighboring states: Arkansas, Mississippi, and Texas.

Curious how solar looks elsewhere? Check out Solar Panels by State →

Free Tools & Guides

Louisiana solar data sourced from U.S. EIA, NLR, and DSIRE. Last updated September 2026. Estimates are illustrative averages — use our free Solar Savings Calculator for personalized results.