Forget what you may have heard about the high cost of going solar. We’ve already mentioned that the latest quarterly report from Solar Energy Industries Association and GTM Research shows a 60% drop in the cost of solar panels since 2011; now add to that a 30% federal credit and a state credit of 50% of the first $25,000 of the cost of each system installed. You read that right. In addition to the federal Renewable Energy Tax Credit, Louisiana offers energy conscious taxpayers an additional credit for installing solar systems.
However, there are some important things that you need to know as you plan your solar installation. Louisiana Act 428, which makes solar energy much more affordable for Louisianans, has a few provisos that you should take into consideration as you interview prospective contractors.
What technologies are eligible for the Louisiana State Tax Credit?
Solar Water Heater
Solar Space Heater
Homeowners are eligible to receive credit for 50% of the first $25,000 of the cost of each purchased system.
How much can a homeowner receive?
Homeowners can receive up to $12,500 per installed system per residence.
What requirements must be met for installation to qualify?
Electrical equipment must be UL-listed.
Solar-thermal equipment must be SRCC-certified.
All systems must be compliant with the requirements of the federal American Recovery and Reinvestment Act (ARRA).
Systems must be sold by and installed by a person who is licensed by the Louisiana State Licensing Board for Contractors.
We’d like to take a moment to give a little more insight on these final two provisions of the state tax credit. It’s up to you – the homeowner – to do your research and hire contractors who are licensed by the Louisiana State Licensing Board for Contractors, as we are here at Sunlight Contractors. It’s not good enough for the installation to be merely supervised by a licensed contractor. The installation must actually be performed by a licensed contractor, which ultimately is better for you anyway. You wouldn’t want your surgery supervised by a doctor but performed by a guy the doctor picked up on his way to work, right? Make sure you take the same care when having work done to your house.
In addition, be sure that the equipment being installed is ARRA compliant. ARRA compliance can be tricky, as there are some exceptions, so it’s important that you know at least a little of the law and then check with your supplier to ensure you purchase eligible products.
Yes. Going solar still requires consumers to be informed, but we know that consumers who are going solar are the sort of people who stay informed anyway. You’re the forward thinkers who keep America moving forward towards sustainability and energy efficiency. No one deserves a tax break more than you.