Mississippi solar incentives, tax credits and rebates

Financial resources for going solar in 2024

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mississippi home with solar panels on the roof

After the federal solar tax credit, the average residential solar panel system costs $21,252 in Mississippi, which is more expensive than in many other states. Mississippi doesn’t currently offer state income tax credits for solar installations, but it does have two rebate programs — both are for households with low to moderate incomes.


Key insights

  • The average federal tax credit value is $9,108 in Mississippi.
  • You might be able to take advantage of rebate programs in Mississippi.
  • Mississippi residents with solar panels save an estimated $20,147 over 25 years.

Solar incentives in Mississippi

The federal solar investment tax credit (ITC) is the biggest factor in reducing the cost of going solar in Mississippi. If you install a residential solar panel system by the end of 2032, you will receive a federal income tax credit equal to 30% of the system's total cost, including equipment, labor and permits.

The federal solar income tax credit drops to 26% in 2033 and 22% in 2034.

For example, the average solar energy system cost is $30,360 in Mississippi. At this price, you can get a $9,108 credit when you file your taxes.

The solar tax credit is not a rebate or refund — 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 also nonrefundable, so any unused portion rolls over into the next tax year.

Statewide residential solar incentives in Mississippi

Mississippi Power and Entergy Mississippi both offer one-time $3,000 cash incentives for installing solar panels. They also have a similar deal for installing solar storage batteries — up to $2,000. Rebates are available on a first-come, first-served basis. The programs are currently set to expire in January 2028.

» MUST-KNOW: The tax benefits of owning a home: deductions and secrets

What to know about net metering in Mississippi

If you don’t store your excess solar energy, you can sell it to your local electric company in a process called net metering. With Mississippi net metering, you sell the excess electricity and get a credit on your bill as compensation.

Net metering is a little different in Mississippi than in other places. Electric companies are not required to pay residents the retail rate of electricity. The company pays its wholesale avoided cost rate plus an additional 2.5 cents per kilowatt-hour (kWh) premium.

Some low-income residents will also receive an extra 2 cents per kWh if they’re Entergy Mississippi or Mississippi Power customers.

Solar resources in Mississippi

Below are some additional resources that can guide you through transitioning to solar in Mississippi.

» GREENEST STATES: Mississippi ranks No. 47

Find solar companies in Mississippi

Compare popular solar companies available in Mississippi below. Read our guide to finding the best solar companies for more.

Do you own or rent?

FAQ

Can I get solar panels for free in Mississippi?

No, but you can lease solar equipment or enter a power purchase agreement (PPA) with minimal upfront costs. Still, neither is free. Solar leases generally require a flat monthly fee, while you’re charged per unit of electricity under a PPA.

» FREE SOLAR PANELS: Are they really free?

How can I pay for solar panels?

You can pay in full upfront, but most people finance solar panels with a solar loan. It works a lot like any other type of loan, and you pay it back over time with interest. If you are considering a solar loan, lease or power purchase agreement, always ask:

  • Is there a down payment?
  • How much will I pay per month?
  • Will monthly payments increase, and by how much?

» SOLAR PANELS: Lease vs. buy

How much can I save with solar panels in Mississippi?

In Mississippi, the average savings is $20,147 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.

Are there any commercial solar incentives in Mississippi?

Yes, there are commercial solar incentives for recruitment and support in Mississippi.

» MORE: Commercial solar panels

Is my HOA allowed to restrict solar panels?

There are no laws in Mississippi that prevent homeowners associations from restricting solar panels.

Bottom line: How much are solar panels in Mississippi?

While solar is more expensive in Mississippi, there are several ways to save. Take advantage of the ITC and the low-to-moderate income residential incentive programs to save the most, and be sure to look into net metering to help offset any power needs not covered by your solar system.

The ConsumerAffairs Research Team conducted an in-depth analysis to determine how much it costs to go solar in Mississippi and the average solar costs in other states.

Solar costs: Mississippi vs. nearby states

*Before the federal investment tax credit (ITC); **When you pay in full upfront

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:
  1. DSIRE, “Mississippi Programs.” Accessed Nov.16, 2023.
  2. DSIRE, “Net Metering in Mississippi.” Accessed Nov. 16, 2023.
  3. EcoWatch, “ How Much Do Solar Panels Cost in Mississippi?” Accessed Nov. 16, 2023.
  4. Mississippi Power, “Pricing & Rates.” Accessed Nov. 16, 2023.
  5. Solar Energy Industries Association, “Mississippi Solar.” Accessed Nov. 16, 2023.
  6. United States Environmental Protection Agency, “Summary of Inflation Reduction Act provisions related to renewable energy.” Accessed Nov. 16, 2023.
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