Net Billing
If you install a solar, wind, geothermal, or other eligible renewable system on your Louisiana home (up to 25 kW), your utility must install a bidirectional meter to track energy you send back to the grid. Depending on when you connect: systems installed before December 31, 2019 receive full retail-rate credits for excess generation through 2034, while newer systems are credited at the utility's avoided-cost rate (which varies by utility and year). You pay the one-time installation fee for the meter, plus all interconnection costs, but the utility covers the meter itself.
Louisiana's net-metering program allows you to develop renewable projects for residential customers (up to 25 kW), commercial clients (up to 300 kW), and agricultural operations, with all utility types participating. Be aware of the December 31, 2019 cutoff: older systems lock in full retail rates through 2034, while new systems use lower avoided-cost rates; educate customers on this distinction so they understand long-term economics. You must coordinate interconnection with the utility and ensure customers understand they cover all interconnection costs and meter installation charges.
Louisiana's net-metering program, established in 2003 and revised via PSC General Order in September 2019, operates a two-tier structure: pre-2020 systems receive full retail credit for 15 years (through 2034), while post-2019 systems receive avoided-cost credits with instantaneous netting. Residential systems max at 25 kW; commercial and agricultural at 300 kW (larger systems require PSC case-by-case review). Utilities file annual reports with the PSC listing all net-metered systems and capacities; avoided-cost rates are published annually by utility. The program covers solar, wind, hydropower, geothermal, biomass, fuel cells, and microturbines using renewable fuels across investor-owned utilities, cooperatives, and municipal systems.
Program details
- Program ID
- 983
- Last updated
- 2/25/2026
Eligibility
- Sectors
- commercial residential agricultural
- Technologies
- geothermal electric solar photovoltaics wind (all) biomass hydroelectric wind (small) hydroelectric (small) fuel cells using renewable fuels microturbines
Program summary
Louisiana enacted legislation in June 2003 establishing net metering.
Eligibility and Availability
Modeled on Arkansas’s law, Louisiana's law requires investor-owned utilities, municipal utilities and electric cooperatives to offer net metering to customers that generate electricity using solar, wind, hydropower, geothermal or biomass resources. Fuel cells and microturbines that generate electricity entirely derived from renewable resources are also eligible.
Per state law, net metering is available for residential systems up to 25 kilowatts (kW) in capacity, and commercial and agricultural systems up to 300 kW that are located in the state. Systems larger than 300 kW will be considered by the Public Service Commission (PSC) on an individual basis.
By the end of each calendar year, utilities must file with the PSC a report listing all existing net-metered systems and their capacities, and, where applicable, the inverter rating for each facility. The ownership of renewable-energy credits (RECs) associated with net metering has not been addressed.
Interconnection
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
Systems that were interconnected before December 31, 2019, will have their monthly net excess generation credited at the full retail rate to the customer's next billing period through December 31, 2034 (15 years). Systems that were interconnected after December 31, 2019, will be credited at the utility's avoided cost rate, with instantaneous netting. 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. Current avoided-cost rates can be found here.
Additional Resources:
* The PSC regulates investor-owned utilities and electric cooperatives in Louisiana; it does not regulate municipal-owned utilities, and its rules thereby do not apply to municipal utilities. Municipal utilities must develop their own programs based on the statute.
Contact & resources
- Contact email
- melissa.watson@la.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
