Louisiana residential solar energy incentives

Personal tax credit for solar and wind energy systems on residential property
- Louisiana provides a tax credit for the purchase and installation of solar and wind energy systems purchased and installed on or after January 1, 2008.
- The system must be installed at a residence or a residential rental apartment complex to be eligible.
- Credit may be applied to personal, corporate or franchise taxes.
- The tax credit may be applied both to solar-electric systems (photovoltaic systems) and solar-thermal systems, when the energy is used for space heating, space cooling or water heating.
- The amount of the credit is equal to 50% of the first $25,000 of the cost of each system, including installation costs if installed by someone other than the tax payer.
- The credit must be fully claimed in the taxable year in which the system is installed and placed in service.
  - Any excess credit which exceeds the taxpayer's liabilities for that year will be considered an over payment, and the Louisiana Department of Revenue will issue a refund for the remaining amount within one year of receiving the claim.
- For photovoltaic (PV) systems, the tax credit applies to AC or DC generation systems which are stand-alone systems, grid-connected or net-metered systems.
- Solar thermal systems must be used for the main purpose of heating water (including pool heating), space heating or space cooling.
  - Solar thermal equipment must be SRCC-certified and installed with all valid building and plumbing codes.
Solar energy system exemption
- 100 % property tax exemption on solar equipment.
  - Any equipment attached to an owner-occupied residential building or swimming pool as part of a solar energy system is considered personal property that is exempt from ad valorem taxation.
- Eligible renewable technologies include passive solar space heating, solar water heating, solar space heating, photovoltaics, and solar pool heating.
Home energy loan program
- State loan program administered by the Louisiana Department of Natural Resources through the HELP program, allowing homeowners to receive a five-year loan to improve the energy efficiencies of their existing homes.
- DNR subsidizes 50% of the financing for energy efficiency improvements at a low interest rate.
- Maximum amount of participation by the DNR is $6000.
- A homeowner may qualify for an energy improvement loan in two ways :
  - Energy Home Rater makes recommendations through an energy audit.
  - Choose pre-approved home improvements as designated by the HELP program.
Net Metering
- Net Metering allows customers to connect renewable energy systems to the grid for their own use and to supply excess electricity to the electric grid.
- Residential customer-generated electricity may be from solar, wind, small hydropower, or fuel cell systems of up to 25 kW in size.
- Net excess generation produced in a one month period is credited to the customer's next bill indefinitely by the utility.
Residential renewable energy tax credit
- This federal personal tax credit allows the taxpayer to claim a credit of 30% of expenditures including labor costs and installation of qualified residential solar-electric systems, solar water heating systems or fuel cells. Small wind-energy systems and geothermal heat pumps can also be accredited for.
- Solar-electric systems and solar water heaters have a maximum incentive of $2,000 if placed in service before 2009. There is no maximum incentive for systems placed after 2008.
- The excess amount of the federal tax credit may be carried forward to the next taxable year if it exceeds tax liability.
  - This can be carried forward until 2016, but after that, it is unknown if the unused credit will be able to be forwarded.
Residential energy conservation subsidy exclusion
- This is a personal exemption of 100% of energy conservation subsidies provided by public utilities.
- The value of a purchase or installation of any energy conservation measure by a customer such as solar water heat, solar space heat or photovoltaics will not be included in the customer’s gross income.
- Customers of an electric utility company, who participate in the utility’s energy conservation program, may receive a rate reduction of electricity furnished or a nonrefundable credit against the purchase price of the electricity on each monthly electric bill.
Energy-Efficient Mortgages
- This is a federal loan program where homeowners can use EEM (energy-efficient mortgages) to finance renewable energy technologies in a home.