Solar + battery installation in Louisiana

Net metering: Avoided cost outside New Orleans; net metering within it

Louisiana has two different arrangements depending on who regulates your utility, and the difference is large. For utilities regulated by the Louisiana Public Service Commission, which is most of the state, the Commission changed the rules in September 2019. Customers who installed or applied after December 31, 2019 are on a two-channel arrangement: they pay the full retail rate for electricity purchased from the utility, they pay nothing for solar energy consumed on site as it is generated, and they receive avoided-cost compensation for electricity exported to the grid. Avoided cost is a wholesale-style measure and has run near 3 cents per kWh against a Louisiana retail average around 12 cents, so an exported kilowatt hour has been worth roughly a quarter of a self-consumed one. The Commission publishes an Avoided Cost Rate by Electric Utility each year, so the figure is reset annually and differs between utilities. Customers who installed before January 1, 2020 were grandfathered onto full retail net metering for 15 years, after which their excess is credited at avoided cost as well. New Orleans sits outside all of this. Entergy New Orleans is regulated by the New Orleans City Council, whose rules require net metering to be offered, and the Commission 2020 rules do not apply to its customers. The practical consequence everywhere outside New Orleans is that self-consumption is worth roughly four times export, so sizing to your daytime load, shifting flexible loads into daylight and considering storage all matter more here than the national conversation suggests.