Solar incentives in the U.S. states: Louisiana
The solar rate in the so-called “pelican state” is tiny at best, although major installations are on pace to nearly triple the current rate of 200 MW of installed solar.
Ranked 38th in the country by the Solar Energy Industries Association (SEIA), Louisiana has a relatively low electricity rate of 14.10 cents per kWh, according to the U.S. Energy Information Administration (EIA), up from 11.69 a year ago. However, the state’s per capita energy consumption is the second highest in the country due to energy-intensive chemical, oil and natural gas industries, in addition to having a high demand for air conditioning during its hot and humid summers. Louisiana is the third largest producer of natural gas in the country, according to the EIA, and the second largest consumer of natural gas per capita, after Alaska, and natural gas accounts for 65% of the state’s electric generation.
Louisiana has lagged in solar adoption, to the point where it provides only 0.0043% of the state’s electricity, or enough to power 20,352 homes, according to the SEIA. However, several large solar projects are currently under construction, including Ventress Solar, which will be the largest in the state at 345 MW. Also under construction is the Bayou Galion Solar project, which will add another 98 MW.
You may be interested in: Solar providers near me Sterling Heights, Michigan.
Small-scale customer-installed solar installations in Louisiana are growing at a slower pace, although they account for a larger share, about three-fifths of the state’s total solar power generation, according to the EIA.
No renewable portfolio standard
Louisiana is one of 13 U.S. states without a renewable portfolio standard (RPS). In 2010, the Louisiana Public Service Commission concluded after a renewable energy pilot program that the state did not need an RPS. Fortunately, the state has other policies in place to encourage renewable energy use and energy efficiency, such as voluntary utility efficiency programs, energy standards for public buildings, net metering, property tax exemption, and home energy loans.
Net Metering
Louisiana allows net metering for small-scale installations up to 25 kW for residential systems and up to 300 kW for commercial and agricultural systems. The total net metering capacity of the grid-connected consumer is limited to 0.5% of each utility’s monthly retail peak power demand load, and several large utilities in the state have already reached their net metering limit.
In 2019, the distributed generation rules in Louisiana were changed. Those who had distributed generation installed prior to December 31, 2019 were grandfathered for 15 years for their current net metering billing. These customers pay the retail rate for the difference between the electricity they purchase from the utility and the electricity they supply to the grid. Residents with distributed generation installed after December 31, 2019 are billed using a crediting mechanism known as bi-channel billing. Each month, these customers pay the applicable retail rate for the electricity they purchase from the utility and receive the full retail value for what they produce and use behind the meter at their home or business. Any surplus energy is credited to the customer’s bill at the current “avoided cost” rate.
Beginning in 2020, the Louisiana Public Service Commission will reduce by two-thirds the rate that utilities have to pay new net metering customers for excess electricity they put on the grid from their rooftop solar panels.
You may be interested in: Solar providers near me Sterling Heights, Michigan
Home Energy Loan Program
Louisiana’s Home Energy Loan Program (HELP) offers low-interest loans to improve home energy efficiency and/or install solar panels. Loans are up to a maximum of $12,000, and participants must go through an underwriting process.
Property tax incentives and solar entitlements.
The State of Louisiana exempts solar energy systems from inclusion in property assessments. The state also enacted a solar entitlement law (HB 751) in 2010 that prohibits entities from restricting a property owner from installing solar generation equipment. This can include homeowner communities, although some exceptions include historic districts, historic preservation areas, and certain monuments.
Community solar in New Orleans
The City of New Orleans has its own community solar program. In partnership with Madison Energy Investments, a developer and operator of distributed generation assets, the city will build a series of solar farms, which interested residents will purchase and receive a credit on their electricity bills for their share of the energy produced. The city of New Orleans has approval rights over the locations to ensure that they coincide with the city’s disadvantaged neighborhoods. The city is also exploring municipally owned sites, such as rooftops and vacant lots, to develop the projects. The maximum capacity of the facilities is 2 MW and projects must have a minimum of three 1 kW subscribers.
Flagship installations
The LA3 West Baton Rouge solar facility in West Baton Rouge is currently the largest operating facility in the state. At 74.5 MW, the solar plant produces enough electricity to power nearly 8,000 homes. Developed by DEPCOM, the project became operational in 2020 and is currently owned by Helios Infrastructure. Power from the ground-mounted project is sold through a power purchase agreement to Entergy Louisiana.
Corporate users in Louisiana include Brookfield Properties Retail, Walmart and Abita Brewing, and Brookfield’s 1.3 MW Mall of Louisiana solar project represents one of the largest corporate installations in the state.
You may be interested in: Solar providers near me Sterling Heights, Michigan
However, these projects will soon be eclipsed by the aforementioned Ventress solar farm, which is being built by Lightsource bp and is expected to be operational in 2023. The power it generates will be sold to McDonald’s Corporation and eBay under long-term power purchase agreements. Louisiana-based Ampirical Solutions has been selected as EPC for the project’s substation and switchyard. The project has created about 400 construction jobs and will be a boost of about $30 million for Pointe Coupee Parish over its lifetime.
“In addition to improving the health and energy security of America’s communities, large-scale solar projects help strengthen local economies. As owners and operators of the Ventress solar farm, we look forward to bringing economic benefits to Pointe Coupee Parish, as well as fostering long-term community partnerships,” said Kevin Smith, CEO of the Americas for Lightsource bp.
