Are Solar Panels Worth It in Louisiana?
Last updated July 1, 2026 · based on Louisiana energy prices
In Louisiana, where residential electricity averages about 12¢/kWh and rooftop solar yields roughly 1,400 kWh per kW per year, solar has a longer payback here (about 20.4 years) because electricity is relatively cheap — it makes the most sense if your rate is rising or you value energy independence.
Louisiana solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 9,800 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,029 |
| Payback period | 20.4 years |
| 25-year net savings | +$3,239 |
Figures use Louisiana average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for Louisiana homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in Louisiana carries the full upfront cost unless a state or utility incentive applies. Because Louisiana electricity costs relatively little, the payback case is more marginal — strongest for high electricity users, south-facing roofs, and homeowners who plan to stay long term.
Frequently asked questions
Are solar panels worth it in Louisiana in 2026?
At Louisiana's electricity price of 12¢/kWh, a typical 7 kW system saves about $1,029 per year and pays for itself in roughly 20.4 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in Louisiana?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in Louisiana?
About 1,400 kWh per year per kW installed in Louisiana, so a 7 kW system produces roughly 9,800 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on Louisiana average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.