Louisiana Solar Rebates and Incentives

Louisiana Rebates and Incentives Summary

LouisianaA decade ago, thousands of homes were destroyed by Hurricane Katrina and her aftermath, and Louisiana committed to rebuilding green. Since Hurricane Katrina, the state has supported pro-solar policies, offering significant incentives to individuals and businesses. The Deepwater Horizon oil spill in 2010 reinforced the state’s desire to reduce dependence on fossil fuels. As a result, the amount of solar has significantly increased in the last five years.

However, as the aftermath of these two disasters have waned, political fighting has placed favorable solar policy in jeopardy. Concerns about the state’s budget and its reliance on the fossil fuel economy has caused some politicians, including Governor Bobby Jindal, to oppose solar incentives. As a result, popular programs, such as the residential tax rebates for solar installation, have been reduced or eliminated, and continue to face opposition. In 2013, the Louisiana Public Services Commission ended a Renewable Portfolio Standard (RPS) pilot program that would have increased renewable energy capacity throughout the state, determining it to be unnecessary.

Given that most of the state gets more than 5 kilowatt hours of sunlight per square meter on a daily basis, Louisiana is well suited for solar power. Despite this advantage and the investments over the last decade, the state currently ranks 23rd in installed solar capacity. Louisiana’s electric supply remains dominated by natural gas power plants, and coal-fired power. Nuclear power provides most additional energy needs. Thanks to the oil refining industry, which relies heavily on fossil fuels, the per capita energy use is high, and renewable energy sources have remained comparatively negligible.

 

Tax Credit for Solar and Wind

Program Type Tax Credit
Technologies Photovoltaics, Solar Hot Water Heating, Solar Pool Heating, Solar Space Heating and Wind
Amount 50 percent of system costs for the first $25,000
Required Documentation Detailed proof of purchase. Tax forms: R-1082 (residence owner), R-1081 (business)
Official Web Site http://www.legis.state.la.us/lss/lss.asp?doc=453218

Louisiana offers a tax credit of up to $12,500 for residents that install a PV, solar thermal system or wind turbine system. Under the tax credit, covered costs include installation costs. The person or entity that purchased the system is eligible to claim the credit. The policy allows the entity that claims the credit to be either a company or a person, but the system must be installed at a residence or residential building, like an apartment complex.

The tax credit for a system can only be claimed once by the person or entity that purchased the system. So if a property with a PV or other system installed is sold, the entity or person that installed the system must disclose if they received the tax credit. A subsequent owner would not be eligible for the credit related to the system.

To be eligible, the credit must be claimed in the year the system was put in into service. The credit applies to all PV system types, regardless of being grid-tied and net metered or attached to a battery backup. Similarly, it applies to wind turbines that produce electricity and also mechanical wind turbines. Solar thermal systems must be used to heat water or provide solar heating or cooling.

Though applicants may apply for the federal credit for renewable energy, if they opt for this state credit, they may not combine it with any other state tax incentive. If the financier’s tax credit exceeds their liability, they will receive a refund from the Louisiana Department of Revenue.

Home Energy Loan Program (HELP)

Program Type Low-interest Rate Loan
Technologies Photovoltaics, Solar Space Heat, Solar Hot Water Heating, Geothermal and other renewables
Amount Half a loan for a five-year period subsidized. The department will cover up to $6,000 of the loan.
Required Documentation Application and approval from financing institution
Official Web Site http://dnr.louisiana.gov/sec/execdiv/techasmt/programs/residential/help/index.htm

Louisiana’s HELP program allows homeowners to obtain a five-year loan to improve the energy efficiency of their home, which can include adding PV and other renewables, according to the Database of State Incentives for Renewables and Energy Efficiency.

Under the program, the Louisiana Department of Natural Resources subsidizes half of the financing for energy efficient home improvements at a low interest rate to participating lenders. The department will subsidize up to $6,000. However, each participating lender determines the maximum amount it will loan and the interest rate they will charge.

Homeowners can qualify for HELP loans by choosing from a list of pre-approved energy improvements, or they can have an energy rating performed on their home by a Home Energy Rebate Option (HERO) energy rater. The department said, “All recommendations of the energy rating are eligible for financing under the program. The cost of the energy rating may be financed as part of the loan.” However, participating in the HELP program means that recipients can’t also participate in the HERO program.

Louisiana Net Metering

Program Type Net Metering
Technologies Photovoltaics
Amount Credited at retail rate toward future usage and is carried forward indefinitely
Required Documentation Interconnection agreement with utility (see link below for standard agreement)
Official Web Site

http://lpscstar.louisiana.gov/star/portal/lpsc/PSC/DocketDetails.aspx

Current net metering rules are undergoing a challenge, but the 2011 rules still stand. Residential systems up to 25 kW are eligible to net meter in the state. Commercial and agricultural systems can net meter systems up to 300 kW in size. Louisiana’s Public Services Commission has the discretion to determine pricing for systems greater than 300 kW. New Orleans has its own set of net-metering rules, which largely resemble those in the rest of the state.

Consumers apply for net metering through their local utility. A utility is no longer required to accept net metering applications when net metering exceeds .5% of its retail peak load. Net excess generation (NEG) in a month period is credited to the customer's next bill for an indefinite time period. In the final month that the customer has service with a utility, they are paid by the utility for any overall NEG at the utility’s avoided cost rate.

Louisiana Solar Power Financial Incentives

Financial Incentives


Federal Appliance Standards

US

Regulatory Policy

Appliance/Equipment Efficiency Standards

06/30/2006

05/21/2015

Building Energy Code

LA

Regulatory Policy

Building Energy Code

07/21/2006

08/05/2014

Modified Accelerated Cost-Recovery System (MACRS)

US

Financial Incentive

Corporate Depreciation

03/15/2002

12/23/2014

Business Energy Investment Tax Credit (ITC)

US

Financial Incentive

Corporate Tax Credit

03/15/2002

05/13/2015

Renewable Electricity Production Tax Credit (PTC)

US

Financial Incentive

Corporate Tax Credit

03/11/2002

04/13/2015

Energy-Efficient New Homes Tax Credit for Home Builders

US

Financial Incentive

Corporate Tax Credit

01/10/2006

12/20/2014

Tax Credit for Solar Energy Systems on Residential Property (Corporate)

LA

Financial Incentive

Corporate Tax Credit

07/18/2007

06/24/2015

Energy-Efficient Commercial Buildings Tax Deduction

US

Financial Incentive

Corporate Tax Deduction

01/10/2006

12/22/2014

Residential Energy Conservation Subsidy Exclusion (Corporate)

US

Financial Incentive

Corporate Tax Exemption

03/05/2002

04/24/2015

Energy Goals and Standards for Federal Government

US

Regulatory Policy

Energy Standards for Public Buildings

06/19/2006

06/21/2015

Energy Reduction in Major State Facilities

LA

Regulatory Policy

Energy Standards for Public Buildings

08/28/2007

08/05/2014

USDA - Rural Energy for America Program (REAP) Grants

US

Financial Incentive

Grant Program

04/09/2003

08/08/2015

Tribal Energy Program Grant

US

Financial Incentive

Grant Program

05/01/2003

07/31/2015

USDA - High Energy Cost Grant Program

US

Financial Incentive

Grant Program

09/27/2010

11/20/2014

USDA - Repowering Assistance Biorefinery Program

US

Financial Incentive

Grant Program

10/08/2012

02/06/2015

USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program

US

Financial Incentive

Grant Program

02/18/2015

02/19/2015

Low Income Home Energy Assistance Program (LIHEAP)

US

Financial Incentive

Grant Program

03/16/2015

03/16/2015

Weatherization Assistance Program (WAP)

US

Financial Incentive

Grant Program

03/31/2015

03/31/2015

Green Power Purchasing Goal for Federal Government

US

Regulatory Policy

Green Power Purchasing

02/19/2004

03/20/2015

Interconnection Guidelines

LA

Regulatory Policy

Interconnection

05/19/2004

08/05/2014

Interconnection Standards for Small Generators

US

Regulatory Policy

Interconnection

10/30/2007

03/16/2015

Energy-Efficient Mortgages

US

Financial Incentive

Loan Program

03/21/2002

06/24/2015

Home Energy Loan Program (HELP)

LA

Financial Incentive

Loan Program

07/08/2005

07/22/2014

Clean Renewable Energy Bonds (CREBs)

US

Financial Incentive

Loan Program

05/02/2006

04/16/2015

USDA - Rural Energy for America Program (REAP) Loan Guarantees

US

Financial Incentive

Loan Program

04/09/2003

12/09/2014

U.S. Department of Energy - Loan Guarantee Program

US

Financial Incentive

Loan Program

09/12/2008

11/20/2014

Qualified Energy Conservation Bonds (QECBs)

US

Financial Incentive

Loan Program

10/23/2008

03/20/2015

City of Shreveport - Shreveport Energy Efficiency Program (SEED)

LA

Financial Incentive

Loan Program

08/02/2011

06/17/2015

USDA - Biorefinery Assistance Program

US

Financial Incentive

Loan Program

10/04/2012

05/22/2015

FHA PowerSaver Loan Program

US

Financial Incentive

Loan Program

12/04/2014

12/04/2014

Fannie Mae Green Initiative- Loan Program

US

Financial Incentive

Loan Program

05/28/2015

07/13/2015

Net Metering

LA

Regulatory Policy

Net Metering

08/01/2003

08/19/2014

City of New Orleans - Net Metering

LA

Regulatory Policy

Net Metering

04/17/2007

03/06/2015

Renewable Energy Pilot Program

LA

Regulatory Policy

Other Policy

02/02/2011

08/19/2014

Local Option - Sustainable Energy Financing Districts

LA

Financial Incentive

PACE Financing

07/15/2009

08/27/2014

Residential Renewable Energy Tax Credit

US

Financial Incentive

Personal Tax Credit

08/10/2005

05/13/2015

Residential Energy Efficiency Tax Credit

US

Financial Incentive

Personal Tax Credit

01/10/2006

12/22/2014

Tax Credit for Solar Energy Systems on Residential Property (Personal)

LA

Financial Incentive

Personal Tax Credit

07/18/2007

06/24/2015

Residential Energy Conservation Subsidy Exclusion (Personal)

US

Financial Incentive

Personal Tax Exemption

03/05/2002

02/16/2015

Solar Energy System Exemption

LA

Financial Incentive

Property Tax Incentive

02/07/2003

08/05/2014

DEMCO - Touchstone Energy Home Program

LA

Financial Incentive

Rebate Program

09/08/2006

06/17/2015

Entergy New Orleans - Residential Energy Efficiency Program

LA

Financial Incentive

Rebate Program

11/06/2009

06/19/2015

Entergy New Orleans - Small and Large Commercial and Industrial Solutions Program

LA

Financial Incentive

Rebate Program

11/09/2009

06/19/2015

Entergy (Louisiana and Gulf States)- Residential Energy Efficiency Program

LA

Financial Incentive

Rebate Program

06/19/2015

06/19/2015

Solar Rights

LA

Regulatory Policy

Solar/Wind Access Policy

06/30/2010

08/05/2014

Solar and Wind Contractor Licensing

LA

Regulatory Policy

Solar/Wind Contractor Licensing

08/11/2010

08/05/2014

Cleco Power - Power Miser New Home Program

LA

Financial Incentive

Utility Rate Discount

05/08/2006

06/17/2015

Calculate How Much You Can Save By Going Solar!
Use The Web's Best Solar Calculator!

Solar Installer Directory

Talk To A Local
Solar Installer
To Find All Your Rebates
Average Monthly Electric Bill
Your Zipcode