Cost of solar panels in Mississippi

How much is it to go solar in 2024?

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Do you own or rent?

two-level house with solar panels on roof

The average cost to install solar panels is $30,360 in Mississippi before the full federal solar investment tax credit (ITC). The price drops to $21,252 after the ITC.

Going solar in the Magnolia State is about 27% more expensive than the national average. The out-of-pocket investment might be higher than in other states, but there are several ways to save on your solar in Mississippi.


Key insights

  • The average cost per watt is $2.64 in Mississippi.
  • The average payback period in Mississippi is 12 years if you pay for a solar panel system upfront.
  • Mississippi residents with solar panels save an estimated $20,147 over 25 years.

How much do solar panels cost in Mississippi?

Installing residential solar panels can cost between $10,000 to $30,000 or more, though individual costs vary. On average, residents of Mississippi pay $30,360 before using tax credits or incentives for their system.

The size of your system is a big factor in how much you pay overall. Not surprisingly, smaller systems tend to cost less. The average size of solar energy systems in Mississippi is 11.5 kW.

Average cost by system size in Mississippi

Source: EcoWatch

Are solar panels worth it in Mississippi?

Solar panels can be a worthwhile investment in Mississippi. The state gets a good amount of sunlight most days, which is ideal for energy production.

Mississippi has relatively low electricity rates, so you won’t save as much over time as homeowners in other states. However, solar panels are still valuable for offsetting utility costs and reducing your reliance on the grid.

For some people, going solar is worth it just for the environmental benefits. If you’re interested purely in cost savings, though, we suggest consulting with a few local installers. They can best calculate the potential savings you’ll get with solar panels. You can also look up your house via Project Sunroof or the National Renewable Energy Laboratory's PVWatts Calculator.

» STILL NOT SURE? Solar energy pros and cons

Cost factors of going solar in Mississippi

The expense of installing a solar system involves more than just the price of the solar panels. It's important to consider additional costs such as other necessary equipment, potential roof repairs, permit fees and other related expenses.

Size of your system

You can easily determine what size system you need. First, find out the amount of electricity you used in the last year in kilowatt-hours (kWh). You’ll find this information through your electric bill’s online account dashboard.

Then, divide your annual kWh by 1,200 to find the system size you need. For example, the typical Mississippi household uses 14,052 kWh per year. Using this formula, the typical household would need a 12-kW system.

» WATT’S THE DIFFERENCE? kW vs. kWh

Solar equipment costs

Typically, the solar panel’s efficiency and the size and weight determine how much your panels cost. Like with other solar equipment, though, there’s an average price. Here are some average costs you can expect for panels and other equipment:

» COMPARE: Most efficient solar panels

Condition of your roof

Your roof must be durable enough to sustain the solar energy system over its life span. Given that solar panels typically last about 25 to 30 years, your roof should also be capable of surviving this long. If not, you'll face additional costs to remove the panels before having any repair or renovation work done on your roof.

» SHOULD YOU: Replace your roof before going solar?

Other cost factors

Keep an eye on several other potential expenses:

  • Installation and labor: While most providers include installation and labor costs in the overall price of the solar system, it's wise to confirm this before finalizing any agreement.
  • Permits: Many localities mandate permits for solar installations, adding to the total cost of your setup.
  • Maintenance: Solar panels generally need little upkeep, but you might incur expenses for occasional repairs or replacements of parts and routine cleaning.

» TIPS: Getting the best solar quotes

Solar incentives, tax credits and rebates 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 credit drops to 26% in 2033 and 22% in 2034.

The average federal solar investment tax credit value in Mississippi is $9,108 in 2023.

Mississippi also offers two rebate programs through local electricity companies. If you’re an Entergy Mississippi and Mississippi Power customer, you can get rebates on your solar system or solar battery.

» EXPLORE: Mississippi solar incentives

Compare solar installation 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 free solar panels in Mississippi?

You can lease solar equipment or enter a power purchase agreement (PPA) with little to no upfront costs, but neither is totally free. Solar leases generally require a flat monthly fee, and you pay per unit of electricity with a PPA.

» FREE SOLAR PANELS: Are they really free?

How are solar costs trending in Mississippi?

The cost to go solar in Mississippi has fallen 42% over the last 10 years, according to the Solar Energy Industries Association.

How can I pay for solar panels?

You can pay cash, but most people finance solar panels. A solar loan 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).

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?

When you pay cash, the average 25-year savings with solar is $20,147 in Mississippi. It’s a common misconception that solar panels always completely eliminate your monthly power bill — this is not always the case. The good news is that people who still have a bill after going solar are paying significantly less than before.

» EXPLORE: Where solar savings go the furthest

How does net metering work in Mississippi?

If you generate more solar energy than you use, you have the option to sell the surplus to your local electricity provider through a method known as net metering. This process lets you earn credits on your electricity bill in exchange for the excess power.

In Mississippi, electric companies are not obligated by law to compensate residents at the retail electricity rate. Instead, they pay the wholesale avoided cost rate, adding a premium of 2.5 cents per kilowatt-hour (kWh). Additionally, low-income customers of Entergy Mississippi and Mississippi Power can receive an extra 2 cents per kWh.

» COMPARE: Best solar monitoring systems

Bottom line

Mississippi residents can expect to pay an average of $30,360 for their solar energy system. The federal solar investment tax credit can lower the cost by around $9,108, and local incentives and net metering can help you save even more on your new solar system. Over 25 years, you could save around $20,147 on average.

» GUIDE: Solar panel installation 

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. EcoWatch, “How Much Do Solar Panels Cost in Mississippi?” Accessed Nov. 16, 2023.
  2. Office of Energy Efficiency & Renewable Energy, “Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics.” Accessed Nov. 16, 2023.
  3. Solar Energy Industries Association, “Mississippi Solar.” Accessed Nov. 16, 2023.
  4. DSIRE, “Mississippi Programs.” Accessed Nov.16, 2023.
  5. Mississippi Attorney General, “A Consumer’s Guide to Solar Power in Mississippi.” Accessed Nov. 16, 2023.
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