Mississippi solar incentives, tax credits and rebates
Resources to make solar panels more affordable in 2024
The Mississippi Public Service Commission (PSC) recently suspended programs that encourage solar power adoption. On the bright side, residents can still take advantage of federal incentives and the state’s net metering policy, which lets you sell excess solar energy to your local power grid.
Here’s everything you need to know about how state and federal solar incentives can make installing panels more affordable in the Magnolia State.
In Mississippi, a typical residential solar panel system costs $10,990 to $31,400, depending on the size of your system and what financial incentives you qualify for.
Jump to insightThe federal solar investment tax credit (ITC) is the best financial incentive for most Mississippi homeowners to buy solar panels.
Jump to insightMississippi's net metering program has evolved to encourage more renewable energy adoption, but it still does not offer full retail rate compensation for self-generated electricity.
Jump to insightResidential solar panel incentives in Mississippi
The Mississippi Public Service Commission voted in April 2024 to suspend solar programs. The state was awarded $62 million through the federal Solar for All grant program earlier this year. However, it is unclear when those funds will become available.
For now, the federal solar investment tax credit (ITC) is the biggest financial incentive for most homeowners buying solar panels in Mississippi. It reduces your federal tax liability by 30% of how much it costs to install solar panels.
The ITC drops to 26% in 2033 and then 22% in 2034.
For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If, in the year your system becomes operational, you owe $15,000 in taxes, the ITC reduces what you owe to $12,000.
You must claim it when you file federal taxes in the year that your solar panel system becomes operational. To do this, you have to complete Form 5695. The credit is nonrefundable, meaning any unused portion rolls over into the next tax year.
What to know about net metering in Mississippi
If you don’t store excess solar energy in a battery, you can sell it to your local electric company through net metering. Mississippi's net metering program allows residents with renewable energy systems to sell excess power back to utilities.
However, it’s not a one-to-one rate. Utilities pay "avoided fuel cost" rates rather than full retail rates. In other words, net metering compensation is based on the total value of electricity consumed and excess generation.
The program has expanded, with participation caps increased from 3% to 4%. Investor-owned utilities now offer a $3,500 rebate for residential customers installing qualifying renewable energy systems.
How much are solar panels in Mississippi?
After the federal solar tax credit, solar panel costs in Mississippi typically range from $10,990 to $21,980.
Your system size greatly affects how much you pay overall. The typical system size for solar systems in Mississippi is 11.5 kW (kilowatts). You might need a larger or smaller system, depending on your average household energy use.
Average solar cost by system size in Mississippi
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Before federal tax credit | $15,700 | $18,840 | $21,980 | $25,120 | $28,260 | $31,400 |
| After federal tax credit | $10,990 | $13,188 | $15,386 | $17,584 | $19,782 | $21,980 |
Solar resources in Mississippi
Below are some additional resources to help guide you through transitioning to solar in Mississippi.
- Mississippi consumer guide to solar power
- Mississippi Power rebates and incentives
- Mississippi Sierra Club chapter
- Steps Coalition
» GREENEST STATES: Mississippi ranks No. 37
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.
| Companies | Customer rating | Pro install | Payment options | Year founded |
|---|---|---|---|---|
| SunPower | 3.4 | Cash, loan, lease | 1985 | |
| Tesla Energy | 2.0 | Cash and loan | 2015 | |
| ShopSolar | 4.7 | Cash, loan | 2018 |
FAQ
Can I get free solar panels in Mississippi?
No, but you can lease solar equipment with minimal upfront costs. Solar leases generally require a flat monthly fee.
» FREE SOLAR PANELS: Are they really free?
How can I pay for solar panels?
You can pay cash, but most people finance solar panels with a solar loan. It works a lot like any other type of loan — there’s an application and approval process, and you pay it back over time (with interest). You also have the option to lease equipment.
» SOLAR PANELS: Lease vs. buy
How much can I save with solar panels in Mississippi?
On average, Mississippi homeowners with solar panels avoid $59,530 in utility costs over 25 years. Even if you don’t generate 100% of your energy needs, you can still save a lot of money versus paying traditional utility bills. In Mississippi, solar panels usually pay for themselves within 12 years.
» EXPLORE: Where solar savings go the furthest
How do I know if my house is a good candidate for solar?
It’s best to have plenty of unshaded roof space that faces south or west for optimal sun exposure. Solar photovoltaic (PV) technologies, more commonly known as solar panels, absorb sunlight and convert it into usable electricity. If you have a lot of shading around your house, they might not get enough sun to power your home.
The condition of your roof matters too — if it needs replacement soon, do that before installing solar panels. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This will cost around $5,000 for a 19-panel setup.
Is my HOA allowed to restrict solar panels?
Possibly. There are no laws in Mississippi that prevent homeowners associations from restricting solar panels.
What has Mississippi’s investment in solar been so far?
Total solar investments in the state total $634 million, according to the Solar Energy Industries Association.
Bottom line
The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it’s worth it for many homeowners, particularly in Mississippi.
Solar costs vs. savings: Mississippi and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Alabama | $20,040 | $33,400 | 11.22 kW | $3.34 | $65,922 |
| Arkansas | $16,020 | $26,700 | 11.19 kW | $2.67 | $67,139 |
| Louisiana | $17,580 | $29,300 | 10.97 kW | $2.93 | $54,636 |
| Mississippi | $18,840 | $31,400 | 11.5 kW | $3.14 | $59,530 |
| Tennessee | $19,560 | $32,600 | 12 kW | $3.26 | $51,774 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- DSIRE, "Mississippi Programs.” Accessed March 29, 2024.
- EnergySage, "The cost of solar panels in Mississippi.” Accessed March 29, 2024.
- Solar Energy Industries Association, "Mississippi Solar." Accessed March 29, 2024.
- SolarReviews, "How much do solar panels cost in Mississippi, 2024?" Accessed March 29, 2024.
- Mississippi Today, “PSC axes solar programs in light of EPA funds, advocates file lawsuit.” Accessed Aug. 7, 2024.
- Clarion Ledger, “Solar advocates sue MS Public Service Commission over cutting solar incentives.” Accessed Aug. 7, 2024.
