Exploring Mississippi Solar Incentives, Tax Credits, and Rebate Programs

Exploring-Mississippi-Solar-Incentives-Tax-Credits-And-Rebate-Program

Post the federal solar tax credit, the average cost of a residential solar panel system in Mississippi amounts to $21,252, exceeding expenses in numerous states.

 Mississippi presently lacks state income tax credits for solar installations; however, it does administer two rebate programs, both tailored for households with low to moderate incomes.

The primary driver in reducing solar expenses in Mississippi is the federal solar investment tax credit (ITC). 

If a residential solar panel system is installed by the conclusion of 2032, an individual qualifies for a federal income tax credit equivalent to 30% of the system’s total cost, encompassing equipment, labor, and permits. 

For instance, with the average system cost at $30,360 in Mississippi, one can claim a $9,108 credit upon tax filing.

It is crucial to note that the solar tax credit is not a rebate or refund; instead, it must be claimed during the federal tax filing in the operational year of the solar panel system. 

Completion of Form 5695 is required for this purpose. Furthermore, the credit is nonrefundable, meaning any unused portion carries over to the subsequent tax year.

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Solar Savings: $3,000 Incentive from Mississippi Power and Entergy Mississippi

Exploring-Mississippi-Solar-Incentives-Tax-Credits-And-Rebate-Program
Post the federal solar tax credit, the average cost of a residential solar panel system in Mississippi amounts to $21,252, exceeding expenses in numerous states.

Mississippi Power and Entergy Mississippi both provide a one-time cash incentive of $3,000 for the installation of solar panels. 

Additionally, a comparable incentive is available for the installation of solar storage batteries, amounting to up to $2,000. These rebates operate on a first-come, first-served basis and are scheduled to expire in January 2028.

In the context of Mississippi net metering, surplus electricity can be sold, with compensation taking the form of a credit on the consumer’s bill.

It is noteworthy that net metering in Mississippi differs from practices in other locations, as electric companies are not obligated to remunerate residents at the retail rate of electricity. Instead, they compensate at their wholesale avoided cost rate plus an additional premium of 2.5 cents per kilowatt-hour (kWh).

For certain low-income residents who are customers of Entergy Mississippi or Mississippi Power, an extra 2 cents per kWh is applicable.

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