Unlock the Power of the Sun with Mississippi’s Solar Incentives and Rebates
With an average of 4,693 kJ/m² of annual sunlight, Mississippi ranks as the 13th sunniest state in America, making it an ideal location for solar power investment. While the prospect of low monthly electric bills is enticing, property owners can also benefit from a range of Mississippi solar incentives and rebates.
In July 2022, the Public Service Commission of Mississippi introduced the new Net Renewable Generation Rules, which go beyond traditional net metering mandates. Under these rules, property owners who install rooftop solar systems may qualify for a $3,500 rebate, along with ongoing net metering benefits and solar incentives.
This groundbreaking initiative aims to revitalize Mississippi’s solar industry and encourage the growth of blue-collar jobs in the sector. The new ruling sets a yearly rebate budget of $10 million for Entergy Mississippi and $5 million for Mississippi Power Co., with a minimum of 50% of the funds allocated to low-income customers. Utilities are also required to provide annual reports on the number of low-income customers benefiting from the rebates.
Mississippi Solar Incentives, Rebates, and Benefits at a Glance
Net Metering Laws: Mississippi is one of only six states without statewide net metering standards, leaving it to the discretion of utility companies. The new regulation mandates that utilities must compensate customers for the total value of electricity used and any surplus power supplied to the grid on a dollar-for-dollar basis.
Mississippi Power offers net metering customers an additional payment of 2.5 cents/kWh above the avoided-cost rate (approximately 3 cents per kWh) for any surplus electricity exported to the grid, effective August 2022. Low-income residential customers utilizing net metering are eligible for an extra 2 cents/kWh payment on top of the avoided cost value.
The Tennessee Valley Authority (TVA) utility also provides a similar compensation model for customers producing solar electricity. The regulations now extend this benefit to households with an annual income of up to 250% of the federal poverty level, and the additional payment is guaranteed for 25 years.
Performance-Based Incentives (PBIs): Mississippi, like many other states, offers PBIs, also known as solar incentives based on your system’s actual power output. For TVA customers, the compensation for your renewable energy system’s output is calculated in kilowatt-hours (kWh) or BTUs, measured by a meter. The electricity generated is accounted for by Solar Renewable Energy Credits (SRECs), with values determined by supply and demand.
Federal Tax Credit: In addition to these solar incentives, all Mississippi residents qualify for the federal Solar Investment Tax Credit (ITC), valued at 26% of the system’s expenses, which can be deducted from their federal income tax.
Rebates and Incentives: Upon completion and approval of the project, the potential $3,500 rebates can be paid directly to the solar installers, simplifying the process for homeowners and reducing initial expenses. However, if the rebate is taken, utilities may require customers to relinquish their rights to any Solar Renewable Energy Certificates (SRECs) associated with their solar arrays.
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, so it’s essential to act quickly. For example, LG currently provides a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
Embrace the power of the sun and take advantage of Mississippi’s solar incentives and rebates to make your solar power investment a smart and rewarding choice.
