Three treatments, not one net figure
The Commission changed the rules in September 2019. Rather than netting generation against consumption, the arrangement treats each flow on its own terms.
Electricity you buy from the utility is charged at the full retail rate, as it always was. Electricity your solar produces and your household consumes on site is charged at nothing, because you never bought it.
Electricity you export to the grid earns avoided-cost compensation, a wholesale-style measure that has run near 3 cents per kWh against a Louisiana retail average around 12 cents.
So the same kilowatt hour is worth about four times more consumed at home than exported. That ratio is the design brief for any Baton Rouge system installed under these rules.
What a four-to-one ratio does to a design
Annual production stops being a useful summary of what a system is worth. What matters is how much of that production your household absorbs as it happens.
It also means the marginal panel at the top of a design produces mostly exports, earning about a quarter of retail while costing full price. The return on each additional panel falls as the system grows.
Ask what self-consumption share the savings model assumed, and ask for the savings split into two lines: avoided purchases at the retail rate, and exports at the avoided cost rate.
Ask for a smaller system modelled alongside the proposal. Under this arrangement a design covering less than your full annual usage frequently returns better.
Louisiana summers are on your side
Air conditioning is a very large load in a Louisiana summer, and it runs hardest through hot afternoons, which is exactly when a solar array produces most.
Under an arrangement that rewards self-consumption at four times the export rate, that overlap is a genuine asset. A high summer cooling load absorbs generation at full value that would otherwise leave at avoided cost.
Pre-cooling extends the effect. Running the air conditioning harder while the sun is up, so less is needed after sunset, shifts a large load into the generating window and costs nothing.
Ask for the analysis seasonally rather than annually. A design that works well in July and less well in January is a normal outcome here, but an annual average conceals it.
What is left to build the number from
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, and Louisiana state solar tax credit expired on December 31, 2017.
Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.
What exists is the property tax exemption on the value the system adds, full retail value for electricity consumed as it is generated, and avoided-cost compensation for exports at a rate the Commission publishes annually and sets per utility.
Ask for the projection with those two values separated and the self-consumption assumption stated on the page.