Louisiana Solar Rebates

Louisiana is a state distinct and famous for its century-old traditions and rich embodiment of diverse cultures. In recent years, all eyes have focused on Louisiana and its struggle to rebuild after devastating hurricanes. In the midst of all of the rebuilding and courageous struggle to recreate a uniquely American way of life, how supportive has Louisiana's government been in creating incentives for the inclusion of solar energy?

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

This program applies to residential and multi-family residential properties. It provides a 50% tax credit on the first $25,000 of the cost of the materials and installation of a home solar power system. Solar hot water heaters, solar space heating, solar pool heating and photovoltaic (PV) systems are eligible. The maximum incentive, as you may have inferred, is $12,500. The credit may be combined with the federal tax credit (30% off total system costs), but may not be combined with any other state tax incentive. Whenever any other incentive, i.e. utility rebates, prizes or gift certificates, is offered in addition to the state tax credit, the eligible cost must be reduced by the added incentive amount.

Local Option - PACE Financing

Louisiana is one of a number of states to pass legislation that enables municipalities (cities, towns, counties, etc.) to develop Sustainable Energy Financing Districts. Within these districts, property owners are able to borrow money from their city or county to pay most or all of the upfront costs for renewable energy systems or energy efficiency upgrades. The loans are paid back through an assessment on property taxes over a fixed period of years at a typically low interest rate.

These incentives are known as Property Assessed Clean Energy (PACE) financing programs. They are a local option, so each municipality decides its own terms and conditions. However, in Louisiana, state law dictates that repayment terms may not exceed 20 years. Solar water heaters, solar thermal electric, daylighting and PV are the solar technologies eligible. Funding for the programs may be procured through bonds, third-party lenders or federal contracts.

According to DSIRE, New Orleans plans to create its own Sustainable Energy Financing District with the help of a grant from the Solar America Cities program.

Solar Energy Systems Exemption

This is for residential purposes and allows solar homes exemption from 100% of property tax assessments accrued by the addition of the solar energy system. Qualifying systems include passive solar heating, solar water heaters, solar space heat, PV and solar pool heating. There is no maximum incentive set. Contact the Louisiana Department of Revenue for more information.

Home Energy Loan Program

Through this program, coined HELP, homeowners can borrow from the LA Department of Natural Resources up to 50% of the cost of installing various solar systems. These include solar water heat, space heat, PV and geothermal heat pumps. The loans are offered for a five-year term at low interest, with a maximum amount of $6,000.