First: Which Louisiana Are You In?
Louisiana's solar economics depend almost entirely on which utility serves your address. Orleans Parish (New Orleans) operates under different rules than the rest of the state.
New Orleans / Orleans Parish
Entergy New Orleans is regulated by the New Orleans City Council, not the Louisiana PSC. When the LPSC ended retail net metering statewide in 2020, New Orleans was exempt. Customers of Entergy New Orleans (ENO) still receive full retail-rate credits for exported solar generation. This makes New Orleans one of the strongest solar markets in the South.
Rest of Louisiana (Entergy LA, CLECO, SWEPCO, DEMCO)
Entergy Louisiana's avoided cost rate is $0.0386407/kWh (effective April 1, 2026; updated each April). CLECO, SWEPCO, and rural co-ops (DEMCO, others) use similar avoided-cost net billing; check the current rate with your utility. If you export solar power to Entergy Louisiana, you receive about 3.9¢ per kWh, while paying 12 to 14¢/kWh to import electricity. Self-consumption is the only strategy that pencils out.
How Louisiana Lost Retail Net Metering
Full retail-rate net metering available statewide
Louisiana had traditional net metering at the retail rate. Solar customers received dollar-for-dollar credit for exported generation.
LPSC votes 3-2 to end retail net metering
The Louisiana Public Service Commission replaced retail net metering with avoided-cost net billing for new installations. The vote was narrow and contentious.
New policy takes effect
Systems interconnected before December 31, 2019 were grandfathered under retail net metering for 15 years (through December 31, 2034). New installations receive avoided-cost credits.
Entergy LA avoided cost set at $0.0386407/kWh
Entergy Louisiana's current filed avoided cost rate is $0.0386407 per kWh, roughly 3.9¢. It is updated each April. This is the credit rate for all post-2019 solar installations on Entergy's system.
If your solar system was interconnected before December 31, 2019, you are grandfathered under retail-rate net metering through December 31, 2034. Do not modify or significantly expand your system without checking with your utility first, changes may trigger a reassessment to the avoided-cost rate and permanently terminate your grandfathered status.
The Self-Consumption Imperative
Outside New Orleans, the economics of solar in Louisiana hinge entirely on how much of your solar production you consume directly. The math is stark.
| Every kWh You… | Value | Annual Difference (500 kWh example) |
|---|---|---|
| Self-consume (avoids retail purchase) | ~$0.13/kWh saved | $65 |
| Export to Entergy grid | $0.039/kWh credit | $19 |
| Value destroyed by over-exporting (per 500 kWh) | $46 lost | |
- Size for 80 to 90% of annual self-consumption, not maximum production
- Model your usage by season, Louisiana summers are long and hot; AC load can actually drive high self-consumption during peak production months
- Consider battery storage, storing afternoon surplus for evening use is worth 5x more than exporting it
- Pool pump and EV charging, shift these loads to midday solar production hours to maximize self-consumption
Louisiana has some of the highest residential electricity usage in the country, averaging 1,200 to 1,400 kWh/month due to year-round AC demand. Even at a right-sized system with 85% self-consumption, the bill savings on those kWh can be substantial. At 13¢/kWh, a right-sized 9 to 10 kW system avoiding 11,000+ kWh/year saves ~$1,430/year in Entergy territory.
Property Tax Exemption
Louisiana's one strong remaining solar incentive is the property tax exemption. Under L.R.S. §47:1706, solar energy systems attached to owner-occupied residential buildings are 100% exempt from ad valorem (property) taxes.
What It Covers
- Solar energy equipment attached to the home (confirm PV treatment with your parish assessor)
- Inverters and electrical equipment
- Owner-occupied residential property
- 100% of the solar system's added value
Estimated Savings
Louisiana's average property tax rate is just 0.55%, one of the lowest in the US. On a $20,000 solar system:
- Annual savings: ~$110/yr
- 25-year savings: ~$2,750
Parishes with higher millage rates (some exceed 0.8%) save proportionally more.
The L.R.S. §47:1706 exemption applies to owner-occupied residential buildings. Rental properties, commercial buildings, and investment properties are not covered by this residential exemption. Landlords and investors should consult a tax advisor about whether other provisions apply.
What Louisiana No Longer Offers
| Incentive | Status | Notes |
|---|---|---|
| State Income Tax Credit (Act 371) | Expired | Louisiana's solar tax credit under R.S. 47:6030 expired years ago. Some websites still list it, verify before relying on it. The credit is not available for new installations. |
| Retail-Rate Net Metering | Ended Jan 2020 | Replaced by avoided-cost net billing for new installs statewide (except New Orleans). Pre-2020 systems grandfathered through 2034. |
| Sales Tax Exemption | None Found | Louisiana's state + local sales tax can exceed 10% in some parishes. No statewide solar equipment exemption was identified, budget for this cost when comparing installer quotes. |
| Utility Rebates | None Active | No solar rebate programs were identified from Entergy Louisiana, CLECO, SWEPCO, or major co-ops. |
| Federal ITC (§25D) | Expired 12/31/2025 | The 30% residential solar credit expired. Third-party-owned systems (leases/PPAs) may qualify under §48E through 2027, potentially making those options more competitive. |
Utility-by-Utility Guide
| Utility | Territory | Export Rate | System Cap |
|---|---|---|---|
| Entergy Louisiana | Central, southeastern LA (Baton Rouge, New Orleans suburbs, Shreveport) | $0.0386/kWh avoided cost (April 2026) | 25 kW residential (300 kW commercial or agricultural) |
| Entergy New Orleans (ENO) | Orleans Parish only | Retail rate (full NM) | 300 kW AC |
| CLECO | Central Louisiana, Acadiana, Lake Charles area | Avoided cost (check current rate with your utility) | 25 kW residential (300 kW commercial or agricultural) |
| SWEPCO | Northwestern Louisiana (Shreveport metro parts) | Avoided cost (check current rate with your utility) | Verify with SWEPCO |
| DEMCO & Rural Co-ops | Rural parishes | Varies by co-op | Contact co-op |
Your utility territory is determined by your service address, not your parish boundary. Check your electric bill or contact Louisiana PSC (lpsc.louisiana.gov) to confirm which utility serves your address before making any solar decisions.
Economics Summary
| Incentive / Factor | Status | Estimated Value |
|---|---|---|
| Net Metering (Entergy LA / CLECO) | Avoided Cost Only | ~3.9¢/kWh exported (Entergy LA; CLECO varies) |
| Net Metering (Entergy New Orleans) | Full Retail NM | ~12 to 14¢/kWh exported |
| Property Tax Exemption | Available (100%) | ~$2,000 to $3,500 over 25 yrs |
| State Income Tax Credit | Expired | $0 |
| Sales Tax Exemption | None Confirmed | Adds ~$1,000 to $2,500 to system cost |
| Utility Rebates | None | $0 |
| Federal ITC (§25D) | Expired | $0 |
Entergy New Orleans (retail NM): 9 to 12 years, strong solar economics
Entergy Louisiana (avoided cost, right-sized): 13 to 18 years
CLECO territory (avoided cost, right-sized): 13 to 18 years
Grandfathered pre-2020 system (retail through 2034): Already very favorable
Assumes right-sizing for 85%+ self-consumption. Louisiana's high energy usage (averaging 1,200+ kWh/month) means large homes can still generate significant bill savings even at avoided-cost export rates.
Questions to Ask Before Signing
- Which utility serves my address?, Entergy New Orleans customers have fundamentally different economics than Entergy Louisiana customers.
- What is the current avoided cost rate?, This is updated annually. Check the LPSC's current avoided cost table or ask Entergy before signing a contract.
- Is the system sized for self-consumption or maximum production?, Demand both numbers from your installer.
- Am I being quoted with or without sales tax?, Louisiana's combined state + local tax can exceed 10% in some parishes.
- Does my quote factor in the property tax exemption?, It should improve your payback calculation.
- What happens to my grandfathered status if I expand?, Grandfathered pre-2020 customers should get this in writing before adding capacity.