Under Louisiana’s net-metering law, investor-owned utilities, municipal utilities and electric cooperatives must offer net metering to customers that produce electricity from solar power and from other renewable energy, like wind and geothermal. 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. New Orleans has its own set of net-metering laws, which largely resemble those in the rest of the state.

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. As of November 2010, the ownership of renewable energy credits related to a net-metered system had not been addressed.

Under the regulation, customers wanting to interconnect their system must notify the utility 45 days prior to interconnecting the system. Also, the utility must provide the customer with a two-directional meter. While the utility must pay for the meter, the system owner must pay a one-time fee to cover the installation cost of the meter. Customers also must pay certain other interconnection costs.