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Incentives/Policies for Renewables & Efficiency

Printable Version
Net Metering   

Last DSIRE Review: 08/19/2014
Program Overview:
State: Louisiana
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Small Hydroelectric, Fuel Cells using Renewable Fuels, Microturbines
Applicable Sectors: Commercial, Residential, Agricultural
Applicable Utilities:All utilities
System Capacity Limit:Commercial and agricultural: 300 kW
Residential: 25 kW
Aggregate Capacity Limit:.5% of retail peak demand
Net Excess Generation:Credited to customer's next bill at retail rate; carries over indefinitely
REC Ownership:Not addressed as no REC program is established in Louisiana.
Meter Aggregation:Not addressed
Authority 1:
Date Enacted:
Date Effective:
La. R.S. 51:3061 et seq.
Authority 2:
Date Enacted:
Date Effective:
LA PSC Order, Docket No. R-27558
Authority 3:
Date Effective:
LA PSC Docket No. R-31417
Note: Ongoing proceedings related to net metering can be found in Docket R-31417.
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. It is also required that net metering facilities apply for and be entitled to state or federal funding for a portion of projects costs.
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. In 2008 (Act 543), the state legislature increased the net metering limit from 100 kW to 300 kW for commercial and agricultural use. The Louisiana Public Service Commission (PSC) opened Docket R-31417 in July 2010 in order to review its rules to increase to the state-mandated 300 kW limit. The PSC approved the increase in May 2011. In July of 2011, the PSC adopted Net Metering Standards, after which the PSC will determine on a case-by-case basis the appropriate pricing of projects exceeding 300kW.
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.
Once any utility's net metering purchases exceed .5% of its retail peak load, they are no longer required to offer net metering.
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
Net excess generation (NEG) is credited to the customer's next bill indefinitely. 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.
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.


  Public Information
Louisiana Public Service Commission
Galvez Building, 12th Floor
602 North Fifth Street
Post Office Box 91154
Baton Rouge, LA 70821-9154
Phone: (225) 342-4404
Fax: (225) 342-2831
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

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