SolarReviews | Louisiana Solar Power Rebates and Incentives
Solar Power Rebates, Tax Credits and Solar Panel Incentives in Louisiana; 2012 Update
August 2012 update: The department of revenue has recently released a draft that looks to clarify a few issues in relation to the state tax credit covering solar installations. It would be advisable if you are looking at solar power to get in while the current system is still in place.
Federal Tax Credit
The significant financial incentive for your solar power system in Louisiana is the same Federal Tax Credit that applies right across the USA. This gives you a credit on your Federal Tax bill equivalent to 30% of the cost of your solar system For more information on this visit out page "The 30% federal tax credit for residential solar power systems" Because this is a tax credit you get the benefit of this when you do your next federal tax return, rather than getting a cheque on the day of installation. Still, it has a real value if you are in a position where you are paying annual federal income tax equivalent to 30% or more of the value of your solar panel system.
Louisiana has Net Metering available for residential systems up to 25 kilowatts (kW) in capacity, and commercial and agricultural systems up to 300 kW. Utilities must provide customer-generators with a meter capable of measuring the flow of electricity in both directions. Utilities must pay for the cost of the meter itself, but customer-generators must pay a one-time charge to cover the installation cost of the meter. Customers are responsible for all interconnection costs. Net excess generation (NEG) is credited to the customer's next bill indefinitely. For the final month in which the customer takes service from the utility, the utility will pay the customer for the balance of any credit at the utility's avoided-cost rate. The ownership of renewable-energy credits (RECs) associated with net metering has not been addressed. This is an issue and I think it would be fair for the owner of the solar power system to own the REC's they have created.
Louisiana State Tax Exemptions and State Tax Credits
Well folks here it is this is the kicker; Louisiana has a state based personal tax credit of 50% on the total value of your PV solar system. Yes it's true, it does max out at $12,500 but this is going to be a great incentive for people to get solar installed. Click "here" and we will get local solar professionals to give you a quote, they are the local experts.
Louisiana Solar Incentives and investment case: Summary April 2012
Louisiana has a very good overall package of incentives to help meet its solar targets. It is one of the best that I have seen in the USA. It is the only state I have seen without a state based Renewable Portfolio Standard that still has a great package of incentives with the flagship being the state based personal tax credit, this is very generous and should result in a lot of solar power being installed in Louisiana. Remember, Warren Buffet's compound annual return on investment over 50 years is only around 20% and with a solar power system you are likely to exceed this within only 5-6 years. From then on the percentage return you get each year just goes up and up as power prices go up and up over the next 30 years. Click "here" and get some quotes.