Solar Payback Calculator

State guide

Solar payback in Louisiana (LA) — 2026

How Louisiana compares with the other 50 records in this dataset
MeasureLouisianaDataset medianRank of 51
Avg residential rate13.5¢/kWh14.8¢/kWh35th highest
Annual insolation5.0 kWh/m²/day4.6 kWh/m²/day12th highest
Modeled payback14.1 years13.5 years31st fastest

Rates from the EIA; insolation from NREL's NSRDB. Ranks and medians are computed across the 50 states and DC covered by this site. Payback is modeled for a 7 kW system at $3.20/W with no federal credit applied — see the disclaimer for the full assumption set.

Louisiana pays about 13.5¢ per kilowatt-hour for residential electricity and receives about 5.0 kWh per square metre per day of sunlight — 35th and 12th respectively among the 50 states and DC tracked here. Those two numbers set the ceiling on what rooftop solar returns in Louisiana, and they point in opposite directions.

Where Louisiana sits against the rest of the country

Louisiana is 1.3¢/kWh below the median residential rate across this dataset (14.8¢/kWh) and 0.4 kWh/m²/day above the median insolation (4.6 kWh/m²/day). Under this site's standard assumptions, that combination puts Louisiana 31st of 51 for modeled payback speed, at 14.1 years against a dataset median of 13.5 years.

What actually drives payback in Louisiana

Louisiana is sunlight-led: 12th for insolation but only 35th for electricity price. Swap Louisiana's sunlight for the dataset median and payback moves to 15.1 years (1.0 years of swing). Swap its electricity rate instead and payback moves to 13.0 years (1.1 years of swing). The rate swap is the larger of the two, so what a kilowatt-hour costs is the input deciding the outcome in Louisiana.

State incentives on record

Recorded for Louisiana: Net metering at avoided cost since 2020 PSC order; sales tax exemption on solar equipment under specific conditions; no current state income tax credit.

No federal credit is applied above (Section 25D expired 31 December 2025), and export terms often matter more than the headline rate (net metering guide).

The modeled system, in numbers

At Louisiana's sunlight level a 7 kW array produces roughly 9,965 kWh a year, worth about $1,345 in first-year bill savings at 13.5¢/kWh against an assumed $22,400 installed cost. A ten-year payback at this sunlight level would require a residential rate of about 20.1¢/kWh, which is 6.6¢ above what Louisiana households pay today.

States with comparable economics

Louisiana's closest analogues by modeled payback are Minnesota (14.2 years), Virginia (14.0 years), Mississippi (14.4 years). They arrive there from different rate and sunlight combinations, so their incentive rows are the useful comparison.

Estimate your solar payback

Enter your ZIP and the system size you're considering. We'll pull your state's average residential electricity rate and an annual sun-hour figure to estimate production and break-even years.

Estimate only — not a quote. Verify with a licensed installer and your utility. Federal Section 25D 30% credit is not included (expired 2025-12-31). Not tax advice — consult a tax professional.

State (LA)
Louisiana
Avg residential electricity rate
13.5¢ / kWh
Estimated annual production
9,965 kWh
Year 1 bill savings
$1,345
Estimated payback
14.1 years
Installed cost before incentives*
$22,400

*A $3.20/W installed cost assumption valued against your state's average residential electricity rate (EIA, most recent 12-month average available as of 2026 Q1). No federal, state, or utility incentive is deducted from this figure — state incentives that may reduce it are listed on your state page for details.

Estimate only. Numbers shown are modeled projections, not quotes or guarantees. Actual production, electricity rates, financing terms, and available incentives vary by household, utility, roof condition, shading, and policy changes. The Residential Clean Energy Credit (Section 25D, the 30% federal tax credit) expired for systems placed in service after December 31, 2025. Verify all numbers with a licensed installer and your utility before making a purchase decision. See full disclaimer.
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