Are solar panels worth it in Mississippi?

6 factors to consider before getting solar panels in Mississippi

ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process. Here’s what to consider before making the switch.

1. Solar panel installation costs
2. Your energy consumption
3. Mississippi solar incentives
4. How long you stay in your house
5. The solar company you hire
6. How you pay

1. Solar panel installation costs: $10,000 to $30,000

Average solar panel costs in Mississippi are comparable with the national average. Before the federal solar investment tax credit (ITC), a typical residential system ranges from $15,700 to $31,400. That price drops to $10,990 to $21,980 after the full 30% tax credit.

Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Mississippi, the average cost per watt is $3.14.

Average solar installation cost by system size in Mississippi

2. Your current energy consumption

A typical Mississippi household needs a system with the capacity of 11.5 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. If you have electrical appliances, consider upgrading them before investing in solar panels.

3. Mississippi solar incentives: federal tax credit and net metering

Compared with other states, Mississippi solar incentives are relatively lacking. Statewide solar panel incentives are currently suspended pending investigation by the Mississippi Public Service Commission. On the bright side, residents can still take advantage of the federal tax credit and net metering.

• Federal solar tax credit: The federal solar investment tax credit (ITC) is the most significant incentive for most homeowners going solar. The ITC provides a 30% tax credit on your total system costs, including equipment, labor and permits. It will drop to 26% in 2033 and 22% in 2034.
• Net metering: Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. In Mississippi, utility companies compensate through energy credits on future power bills. The statewide net metering program recently expanded. Participation caps at 3%, and investor-owned utilities offer a $3,000 rebate for residential customers who installed qualifying systems.

» GREENEST STATES: Mississippi ranked 37th in 2024

4. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 12 years on average in Mississippi. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

Solar panels last 25 to 30 years.

A Zillow study found that, on average, houses with solar panels sell for 4.1% more. Let’s say you spend $25,000 putting solar panels on a house that costs $400,000. It might sell for $16,400 more in a few years, according to Zillow. But you miss out on some of that $59,530 in total avoided utility costs over 25 years.

In other words, don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.

5. The solar company you hire

We’ve heard from thousands of verified solar customers from all over the country. In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision. Use the National Renewable Energy Laboratory’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

6. How you pay

It’s great if you can pay for the whole thing upfront. Of course, cash isn’t always an option. That’s when loans, leases and other agreements come into play.

• Loans: Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.
• Leases: Leasing panels is one way to get the benefits of solar energy without the high upfront cost. A solar lease works like a car lease — you get to use the panels but don’t own them. Leasing can be good if you have limited savings. Solar lease agreements typically last 20 to 25 years.
• Home equity loans or lines of credit (HELOC): Eligible homeowners can borrow against equity in their house to finance a solar panel system. These often have variable interest rates, meaning monthly payments can increase over time.

Monthly costs: solar payments vs. savings

Think of going solar in terms of your monthly costs. Given rising energy costs in Mississippi and elsewhere, financing solar panels makes sense as long as your monthly loan payment is less than what you would be paying the utility company anyway.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Mississippi averages 4 to 4.5 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
• What is the size and angle of my roof? Mississippi (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

Pros and cons of solar panels in Mississippi

Mississippi doesn’t have as many solar incentives as other states, but the long-term savings on electricity bills and the environmental benefits make it a compelling investment for those looking to embrace renewable energy.

Benefits of solar panels in Mississippi

• Cheaper energy bills: Going solar now means that your monthly energy expenses will be more predictable (and often significantly lower). Solar panels also protect you from future energy cost increases.
• Better for the environment: Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: According to the study mentioned above, houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

Drawbacks of solar panels in Mississippi

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.
• Potential roof leaks: The installation process involves drilling to anchor the panel mounting systems into your roof. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy.

» MORE: Solar energy pros and cons

Find solar companies in Mississippi

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Mississippi’s top solar companies to learn more.

Bottom line: Is going solar in Mississippi worth it for you?

Going solar in Mississippi might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Mississippi and nearby states