NEW ORLEANS — The New Orleans City Council’s Climate Change and Sustainability Committee reviewed progress on the city’s growing pipeline of community solar projects and key grid interconnection standards during a March 11 meeting. The discussion highlighted both the program’s potential economic impact and ongoing regulatory considerations for utilities and developers.
Community Solar Projects: Expansion and Ratepayer Impact
The current project pipeline totals approximately 60 megawatts of capacity, enough to power an estimated 6,000 to 7,800 homes. The projections are based in part on expected output from the Sisters of the Holy Family Community Solar Project.
If fully built out, the projects would generate roughly half the output of the New Orleans East Power Plant, according to City Council materials. Presenters at the committee meeting said the initiative represents roughly 4.3% of Entergy New Orleans’ generation portfolio, making it one of the utility’s larger resource segments.
“This is one of the most impactful policy mechanisms to mitigate rising energy costs,” said Councilmember Aimee McCarron, chair of the Climate Change and Sustainability Committee. “Community solar is the best way to provide access to cheaper, cleaner, locally produced power to many New Orleanians. In an era of rising costs creating an affordability crisis, this is one of the best ways to lower electric bills just by signing up.”
Subscribers receive 1:1 bill credits that offset electricity usage, with additional incentives available for low-income participants, including a 2-cent adder on solar credit rates and requirements that a portion of project capacity be reserved for low-income subscribers. Officials said the program could reduce overall demand on the grid, lower the risk of rolling outages and decrease reliance on fossil fuel generation.
The pipeline includes a mix of low-income–focused and open subscription solar projects at various stages of development, all working within the 60-megawatt cap. City data shows 51 megawatts currently in the application queue, with an additional 5 megawatts under construction and 15 megawatts on a waitlist.
Grid Standards and Solar Project Costs
An Entergy New Orleans representative also briefed the committee on updates to the utility’s Direct Transfer Trip (DTT) standards, a key safety requirement for large-scale solar interconnections. DTT systems are designed to automatically disconnect solar installations during grid disturbances, helping prevent equipment damage and protect lineworkers.
Entergy New Orleans is revising the standard with input from a third-party review. Updated guidance is expected to be shared with the City Council and subscriber organizations by mid-April, with a full revision anticipated by mid-June.
The committee also voted to recommend approval of Resolution R-26-109 which would extend compliance deadlines for certain projects affected by the DTT requirements. Under the proposal, deadlines would shift from March 13 to April 27 while requiring the utility to submit updated interconnection guidelines by that date.
Council members said DTT requirements can add significant costs to solar projects by requiring additional equipment and grid coordination, making regulatory clarity a key issue for developers and utilities.
State Energy Policy and Utility Oversight
The committee also heard from Davante Lewis of the Louisiana Public Service Commission, who outlined the agency’s priorities around energy costs, efficiency and utility oversight. Louisiana continues to have high per capita energy usage despite relatively low electricity rates, with carbon emissions nearly double the national average due largely to industrial activity.
To address those challenges, the commission has updated its energy-efficiency rules to strengthen existing programs, expand benefits for residents and reduce overall system demand. It has also adopted an all-source procurement policy, giving utilities greater flexibility in how they meet future power needs.
On the regulatory side, the commission is reviewing accounting and purchasing practices at Delta Utilities and plans to shift to annual fuel audits beginning in July 2026, while encouraging improved natural gas hedging strategies amid current market conditions. Regulators are also examining potential incentives for heat pump adoption as a way to reduce reliance on natural gas and mitigate long-term cost pressures for consumers.
