Mississippi solar rebates and tax credits calculator

Summary of Mississippi solar incentives 2022

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, all that sun means solar panels can still be a compelling addition to your home. Read on to learn more about your potential savings with home solar in Mississippi.

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

This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.

The federal tax credit falls to 22% at the end of 2022.

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 is one of only six states in the nation without statewide net metering standards in place. Net metering remains completely at the discretion of the utility companies. That’s a raw deal for Mississippi homeowners, unless you happen to live in the TVA service area, it might be difficult to figure out how your panels will affect your electricity bill.

Here’s how Mississippi Power refers to its net metering policy: "the rate paid for electricity placed on the grid by a net metered customer is 2.5 cents/kWh above the company's avoided-cost rate” which “currently ranges from 2.29 to 3.62 cents/kWh.” (at the time of this writing; late 2020).

Every 15 minutes, Mississippi Power will determine how much solar energy your system sent to the grid and credit you about 5.5 cents/kWh for it. They’ll happily charge you an average of 7.5 cents/kWh for energy you buy from them when the sun isn’t shining.

Mississippi solar rebates

While Mississippi does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.

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