Mississippi Solar Incentives (Rebates, Tax Credits & More in 2024)

In the table below, we’ll list of all of the incentives available to solar customers in MS, as well as a brief description of how each can affect your system costs.

What Do Mississippians Need to Know About the Federal Solar Tax Credit?

The federal solar tax credit is offered to all U.S. residents by the federal government. This is a tax credit for 30% of your system value, which means the credit gets applied to your income tax liability and effectively reduces the cost of your system by saving you on your tax bill.

Given the average system value of $37,605 in Mississippi, the typical resident will see a credit value of around $11,282. If you can take the entire credit, this would bring the effective cost of your system down to around $26,324, which is much more palatable.

The federal credit was initiated in 2005 to push renewable energy. When it was first offered, it was set at 30% through 2021. It was then scheduled to drop to 26% in 2022, 22% in 2023 and 0% in 2024 and beyond.

In August of 2022, Congress passed the Inflation Reduction Act (IRA), which extended the credit to 2034 and increased the credit value for 2022. The new rate schedule is as follows:

• 30% credit for solar power systems installed between 2022 and 2032
• 26% credit for systems installed in 2033
• 22% credit for systems installed in 2034
• The credit will be discontinued in 2035 unless renewed again by Congress

How to Claim the Federal ITC in Mississippi

Claiming the federal credit is simple, so the payout for the minimal time and energy it takes is well worth it. You can follow the steps below to make sure you don’t miss out on this incentive.

• Step 1: Head to the Internal Revenue Service’s (IRS) website and print out IRS form 5695.

• Step 2: Fill out the form. You’ll need to gather information about your system size and cost as well as contact information for the company that carried out the installation.

• Step 3: File the completed IRS form with your taxes or have your accountant do so.

If you don’t file your taxes manually and instead use a program like TurboTax to handle filing, just be sure to answer “yes” when asked if you’ve carried out installations for renewable energy or energy-efficiency home improvements. The prompts that follow will help put together all the information you need to take this perk.

EcoWatch’s Opinion on the Federal ITC in Mississippi

The federal tax credit is our favorite incentive available in Mississippi, and it’s the one we recommend taking above all others. It takes just a few minutes to apply, is available to all solar customers and provides a massive credit — over $11,250 in most cases.

It’s important to note that the federal credit is not an upfront rebate, and you’re not guaranteed to be able to take the full credit. Instead, the credit amount gets applied to any money you owe on your income taxes when you file.

You can roll over any unused credit for five years. However, that still means you need to owe around $2,250 per year on average for five years following installation to take the full amount.
Watch Below: What Should You Know About Recent Changes to the Solar Tax Credit?

Net Metering in Mississippi

Net metering — also called net energy metering or just NEM — is a billing policy that lets you earn credits for excess power generated by your panels that isn’t used at the production source (your home). The credits accrue with your electric company, and they are automatically put toward future bills for any months where you may use more energy than your panels produce.

NEM helps you pay off your panels more quickly and maximize your savings on energy, so it’s an outstanding perk to have.

The Mississippi Public Service Commission (PSC) does mandate net energy metering but only for investor-owned utilities (IOUs), including Tennessee Valley Authority (TVA). Since most of the state is serviced by electric cooperatives, many customers won’t have access to this incentive.\

Some electric co-ops do offer net energy metering even though it’s not mandatory, and the credit rate is determined by the co-op itself. We encourage you to check with your utility company before converting to solar to see if NEM is available and what your credit rate will be.

There are sometimes additional incentives for low-income households, so individuals who qualify can receive above-average credit rates for the area.

We should also mention that net metering policies are changing throughout the country. In states where they’re being changed, they’re usually becoming less valuable to solar customers, with credit rates dropping below the retail rate or disappearing altogether.

There are no plans currently in place for the statewide net metering program to disappear. However, we recommend checking on the current status of the net metering rules with your utility before going solar.

How to Enroll in Net Energy Metering in Mississippi

If your utility offers NEM, enrollment will effectively be automatic if you choose a reputable solar installer. Your installation company should complete the net energy metering application for you to get you enrolled. You can follow the steps below to make sure you can take full advantage of this incentive.

• Step 1: Contact your utility provider and ask if NEM is available. If it is, ask your provider to make sure you have a bidirectional electric meter installed. This is required for interconnection and participation in net energy metering. This is a good opportunity as well to ask what rate is offered for NEM.

• Step 2: Connect with a reputable solar installer in your area and complete the installation process. Confirm with your installer that a representative will file the net energy metering application on your behalf.

• Step 3: Monitor your electric bills for a month or two following the installation and make sure your credits are being applied or are accruing as expected.

EcoWatch’s Opinion on Net Energy Metering in Mississippi

Net energy metering is an outstanding perk where it’s available, and it’s one of the most valuable incentives in Mississippi, in our opinion, if you can take it. NEM provides a few key upsides, including:

• Reduces your panel payback period — an important benefit in areas like Mississippi, where the typical payback period is longer than the national average
• Maximizes your long-term savings on electric bills — net energy metering helps residents reach the typical $20,147 in lifetime energy savings (on top of the savings achieved to offset your system cost)
• Improves the overall value of your PV system — increased savings on energy bills typically make your home more valuable to potential buyers and help make your panels more worthwhile overall

Best of all, enrolling in NEM takes no effort on your part once your panels are installed.

Local Efficiency Incentives in Mississippi

While Mississippi doesn’t have the most impressive solar perks, it does couple those available with some perks for other efficiency upgrades. Below is a quick list of the other rebates and incentives available for other home efficiency improvements in the area.

• Entergy Mississippi eTech Program: This is a cashback program for Entergy customers who are looking to install level-two electric vehicle (EV) chargers. The rebate for residential chargers is $250.³

• Entergy Mississippi Residential Energy Efficiency Program: This is another cashback program for Entergy customers looking to make efficiency upgrades. The amount varies from $40 up to $1,100, depending on the upgrade. It covers energy-efficient heating and cooling systems and appliances.⁴

• Mississippi Power Residential Energy Efficiency Rebate Program: This program provides cashback perks between $25 and $250 for efficiency upgrades, including efficient window ACs, pool pumps and smart thermostats.⁵ As the program name implies, this is only available to customers in Mississippi Power’s service area.

• Pearl River Valley Electric Comfort Advantage Program: This is a cashback option for customers of Pearl River Valley Electric. It provides cash-back incentives ranging from $150 to $400 for upgraded heat pump installations.⁶

• Atmos Energy SmartChoice Rebates: Customers of Atmos Energy can get cashback perks of between $100 and $600 for upgrading certain appliances and electronics. Dryers, water heaters, furnaces and smart thermostats all have a cashback program available.⁷

• Coast Electric Power Association Comfort Advantage Home Program: This program is available to customers of Coast Electric and offers cash-back incentives between $150 and $500 for certain energy-efficiency home improvements, including geothermal heat pump installation.⁸

• Singing River Electric Power Association Comfort Advantage Home Program: This program is for Singing River Electric customers. It offers cash-back perks for geothermal heat pumps and standard heat pumps. The perks range from $150 up to $1,000.⁹

• Southern Pine Electric Power Association Residential Energy Efficiency Rebate Program: This program offers financial incentives for certain efficiency improvements, such as installations for heat pumps.¹⁰

Which Tax Incentives Are The Best In Mississippi?

We’ve discussed all of the benefit programs available for solar installations and efficiency upgrades in your area above. Some of these perks are more valuable than others, so we’ll include a list of the top incentives we strongly recommend you take if you’re converting to solar.

The Federal Solar Investment Tax Credit

The federal credit is one of the most valuable perks available to Mississippians, and it’s the one we recommend filing for if you only have time to take one. This perk provides an average potential return of $11,282 for solar panel systems in your area. Best of all, it takes just a few minutes to apply, so it provides the best bang for your buck in terms of return on investment.

Net Energy Metering

Net energy metering is another perk we strongly recommend prioritizing. Most of the reliable installers in The Magnolia State will submit the net energy metering application for you, so the process to take advantage of this incentive will effectively be automatic.

If this program is available to you, it will maximize your savings on power bills over time and help pay off your system more quickly.

What’s The Near-Term Outlook For More Incentives In Mississippi?

As of January 2024, there are no plans for the existing solar benefit programs in your area to change or disappear.

With that being said, the incentives in Mississippi rely heavily upon your utility provider rather than the state as a whole. We encourage you to check with your utility provider for the current rates of its net metering program.

You can always check the Database of State Incentives for Renewables and Efficiency (DSIRE) for updates to the programs mentioned above.

The cost information presented in this article is derived from a comprehensive analysis, incorporating data from multiple industry sources. The average cost per watt per state was calculated based on figures from Consumer Affairs, Energy Sage, and Berkeley Lab’s Electricity Markets & Policy Department. Additionally, monthly energy consumption and the average monthly cost of electricity were sourced from the U.S. Energy Information Administration, ensuring a well-rounded and accurate representation of the information presented.