Mississippi solar rebates and tax credits calculator

Summary of Mississippi solar incentives 2024

Mississippi has plenty of sun, but legislators in Jackson haven’t really done anything of note to help promote adoption of home solar here. However, the state Public Service Commission took some action in 2022, when it established a solar rebate program and rewrote rules governing how much people with solar panels can get paid for the energy their systems produce and send to the grid. Going solar here still isn't a 100% great deal for everyone, but the PSC's actions have made it easier for more people to enjoy the benefits of solar power.

Federal solar investment tax credit

The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Mississippi

If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.

Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.

The federal tax credit falls to 26% starting in 2033.

Net energy metering in Mississippi

With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.

Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, to make sure you get credit for the surplus. Mississippi doesn't have true net metering, and the PSC instead refers to "Distributed Generation Rules" that govern how solar owners get paid for the energy their systems generate. They're close to net metering, but not exactly like it. 

The important thing to know is that in Mississippi, energy your solar system produces that gets used in your home reduces your bill by the full retail amount. Any energy that gets sent to the grid is recorded on a separate channel of the smart meter installed at your home, and you get a credit for that energy on your next bill. 

The credit is determined by the wholesale cost of power (called the "avoided cost"). Every kWh of solar you send to the grid earns you a credit of between 2.3 to 3.6 cents per kWh, plus a distributed energy credit adder of 2.5 cents. An additional 2 cents per kWh is added for residents whose income is below 225% of the federal poverty level.

Essentially, the credit you receive for energy will be about 7.5 cents per kWh if you meet the income requirments for the adder, or 5.5 cents per kWh if you don't. Entergy and Mississippi Power will happily charge you an average of 11 cents/kWh for energy you buy from them when the sun isn’t shining.

Mississippi solar rebates

New for 2023 is a dedicated Mississippi rebate for installing a distrubted generation system. Any resideintial solar system between 3 kW and 20 kW will qualify its owner to receive a rebate of $3,500. Unfortunately, this program is not up-and-running at the current time, as the rules are still being finalized. Watch this space for more information as the rebate program opens later in the year.

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