Cost of solar panels in Mississippi (2025)

How much do solar panels cost in Mississippi?

With professional installation, a typical 8-kilowatt residential solar panel system in Mississippi costs $25,120. That price drops to $17,584 after the full federal solar investment tax credit (ITC).

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar systems in Mississippi is 11.5 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar installation cost by system size in Mississippi

Are solar panels worth it in Mississippi?

For some residents, 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.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Installing solar panels leads to big long-term savings on electricity bills for Mississippi homeowners. On average, you’ll spend $10,990 to $31,400 for panels that last about 25 years. Over that same time period, you’d avoid approximately $59,530 in total utility costs.

If your house is a good candidate for solar, it’s worth considering if you like the idea of lower monthly utility bills and more energy independence. If you also have an electric vehicle, solar panels will save you even more.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Mississippi

The expense of installing a solar system involves more than just the price of the panels. The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

» BEST STATES FOR SOLAR: Mississippi ranked 41st in 2024

Solar panels

In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

A solar panel’s efficiency is a measure of how well a panel makes electricity. The more efficient the solar panels you buy are, the fewer panels you need. While more efficient panels cost a little more, you save by buying fewer panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. Prices often depend on the battery’s storage capacity, life span, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a standalone system for $80 to $400.

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.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can.

» SHOULD YOU: Replace your roof before going solar?

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

Local permits and fees

Permit fees and maintenance, though relatively cheap, are worth mentioning.

• Permits: Various permits are required for solar panel installation, including electrical, building, interconnection, zoning and solar photovoltaic permits. The cost of these permits can range from $50 to $350, depending on the specific location within Mississippi.
• Maintenance: Solar panels generally need little upkeep, but you might incur expenses for occasional repairs or replacements of parts and routine cleaning.

» GREENEST STATES: Mississippi ranked 37th in 2024

How to save money on solar panels in Mississippi

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Mississippi:

• Compare quotes: Get quotes from at least three or four different solar companies in Mississippi. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Get rebates: Some solar panel manufacturers offer rebates on their products. While these may not be specific to Mississippi, they can still provide additional savings.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Mississippi

Statewide solar panel incentives are currently not in effect after a vote in April 2024 by the Mississippi Public Service Commission. Incidentally, the federal solar investment tax credit (ITC) is the best financial incentive for going solar in Mississippi. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and 22% in 2034.

Don’t get confused: The ITC is not a rebate or a refund. It is a credit that goes toward what you owe on federal income taxes the year your system becomes operational. Any unused portion of the credit rolls over into future tax years.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces what you owe to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

How can I pay for solar panels in Mississippi?

Affordable financing makes the upfront costs of solar more manageable. For instance, most leases let you start saving from day one with little or no money down.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Mississippi

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Mississippi.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Mississippi homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

Solar costs vs. savings: Mississippi and nearby states