Louisiana

Solar Legislator Score: **
Louisiana, home to Cajun country and the Big Easy, the sportsman’s paradise has a little bit of everything under the sun. Using renewable energies like solar power could help keep Mardi Gras and Jazz Fest around for years to come. How has the Louisiana legislature fared with promoting clean power? Keep reading.

STATE LEGISLATION
In 2007, the Louisiana legislature passed Act 371, which gives a tax credit for solar and wind energy systems. Beyond this tax credit an a property tax exemption for solar energy equipment, Louisiana has not yet seen the light when it comes to renewable energy.

NET-METERING
Louisiana’s net metering rules, established in 2005, cover residential systems up to 25kW and commercial systems up to 100kW. Net excess power generated gets credited to the customer’s next bill. The good thing about Louisiana’s net-metering rule is that there’s no annual limit on this. The credits continue indefinitely. Customers are paid the wholesale rate for any net excess power generated when they cancel service.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES
The Tax Credit for Solar and Wind Energy Systems on Residential Property passed by the Louisiana legislature in 2007 offers a 50% tax credit on the first $25,000 spent by either a corporation or an individual to install a solar or wind energy system. This amounts to a maximum credit of $12,500.


EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST
With a state solar rating of Good, installing a solar electricity system is a great way to lower electric bills at home. A typical 3kW system in New Orleans would cost about $34,500. While saving you around $1,000 each year on utility costs, the solar electricity system will pay for itself in about 20 years. The best part is that you’ll also get to keep about 160 tons of greenhouse gasses out of the atmosphere!

Building Type: Residential
State & County: LA - Orleans
Utility: Entergy New Orleans Inc
Utility Type: Investor-Owned Utility
Assumed Average Electric Rate: Please check against your bill $0.0946 /kWh
Assumed Average Monthly Electricity Usage: Please check against your bill 1,300 kWh/Month
Your Average Monthly Electricity Bill: (Assumed rate x average monthly usage) $123 /Month
Tiered Rates Apply: No
Time-of-Use Metering Offered: No
Net-Metering Available: Yes

ESTIMATED SYSTEM SIZE
The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 5.20 kW and 7.80 kW of peak power. This estimate assumes the mid-point of this range.
Solar Rating: Good (4.74 kWh/sq-m/day)
Solar System Capacity Required: 6.50 kW of peak power (DC watts)
Roof Area Needed: 650 sq-ft

ESTIMATED SYSTEM COST
This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.50 kW peak power system will cost between $46,800 and $70,200. This estimate assumes the mid-point of this cost range.
Assumed Installation cost: (before rebates, incentives or tax credits) $58,500 assuming $9 /watt
Expected Entergy New Orleans Inc Utility Rebate: ($0)
Expected LA State Rebate: State incentive does not apply to this utility ($0)
LA State Tax Credit/Deduction (50% of net system cost) (Maximum of $12500) ($12,500)
Federal Tax Credit: (Installation type: Residential ) ($2,000)
Income Tax on Tax Credit: $3,500

YOUR ESTIMATED NET COST: $47,500
Monthly Payment (6.5% apr, 30 years): $300

SAVINGS & BENEFITS
Increase in Property Value: $12,840
Exempt from Property Tax: YES
Accelerated (5 yr) Depreciation: (Installation type: Residential ) No
First-year Utility Savings: Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher! $642
Average Monthly Utility Savings: (over 25-year expected life of system) $90
Average Annual Utility Savings: (over 25-year expected life of system) $1,078
25-year Utility Savings: $26,939
Return on Investment (ROI): (with Solar System ave. cost set as asset value) 142%
Return on Investment (ROI): (with Property appreciation set as asset value) 525%
Years to Break even: (Includes property value appreciation) 19 years
Years to Break even: (Assuming no property value appreciation) 26 years
Greenhouse Gas (CO2) Saved: over 25-year system life 160.0 tons (320,000 auto miles)

CONSENSUS
Louisiana has not yet caught on to the benefits of solar power. While some of that may have to do with cleanup from hurricane Katrina, the legislature needs to start promoting clean energy; Louisiana legislators could open up a whole new market considering all the reconstruction that needs to be done. Creating greater incentives for installing solar electricity and hot water systems could go a long way toward reinvigorating the local economy. Now is the time to get moving on solar power; laissez les bons temps rouler!

http://www.solarpowerrocks.com/louisiana/