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37k 2022 Mississippi Solar Tax Credits, Rebates & Other Incentives
Here’s a quick look at the solar incentives in Mississippi:
- Federal Solar Tax Credit (ITC)
- Net Metering
- Additional City & Utility Rebates
Why You Can Trust EcoWatch
Our solar experts have sifted through hundreds of local governments’ and utility companies’ websites to find accurate information about current solar incentives in each state. We’ve also unbiasedly ranked and reviewed hundreds of solar installers to empower you to make the right choice for your home.
How Much Can You Save With Solar Incentives in Mississippi?
In this article, we’ll discuss the solar incentives and rebates available to Mississippi homeowners. When you’re ready to speak with a qualified professional, follow the links below. Each of these companies can help you identify and apply for incentives available in Mississippi.
Jump to Section:
- Solar Rebates, Tax Credits and Incentive Programs in Mississippi
- Net Metering in Mississippi
- Federal Solar Tax Credit
- FAQ: Mississippi Solar Incentives
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Mississippi homeowners live with relatively high energy needs and high electricity rates, so solar power makes a lot of sense in the state. While solar installations are getting cheaper, they can still be tens of thousands of dollars. Thankfully, there are a number of solar incentives provided on a state and federal level to make going solar more affordable and more accessible for homeowners throughout Mississippi.
With per-watt prices hovering around $2.64 and a system that’s about 11.5 kilowatts required to offset average energy bills, the typical homeowner will pay an average of $30,360 for their solar panel systems, which leaves most looking for ways to save in the process. Below, we’ll discuss rebates, tax incentives and more that help make solar a better investment in Mississippi.
Disclaimer: This article is for informational purposes only. It should not be relied on for and is not intended to provide accounting, legal or tax advice.
Current Solar Rebates, Tax Credits and Incentive Programs in Mississippi
The table below includes some of the most substantial solar incentives that are available to Mississippi residents in 2022. We’ll provide some brief descriptions of how these incentives can help you, and more information will be available further in this article.
| Mississippi Solar Incentive | Description |
| Federal Solar Tax Credit (ITC) | The solar investment tax credit is an incentive that applies a credit to your federal tax liability for the year in which you turn on your solar panel system. In 2022, the credit is for 30% of your total system cost, which, in Mississippi, averages out to around $9,108.1 |
| Net Metering | Net metering allows homeowners to earn credits for the excess power their system produces. These credits can be used to offset electricity bills for energy you pull from the grid at night.2 We’ll discuss the specifics of net metering in Mississippi below. |
| Mississippi Clean Energy Initiative | Although it doesn’t directly benefit homeowners, the Mississippi Clean Energy Initiative does aim to make solar more accessible and affordable. The program offers a 100% tax incentive to manufacturers of solar and other renewable energy equipment to entice companies to provide solar in MS.3 Ultimately, this will reduce the cost of going solar for homeowners as well. |
| Local Energy Efficiency Rebates & Incentives | While there aren’t any specific local rebates for solar energy systems, there are many rebate programs offered by local utility companies for improving your home’s energy efficiency. We’ll discuss these in greater detail below, but you can also check the DSIRE database for additional information.4 |
Mississippi Solar Incentives
According to the Solar Energy Industries Association (SEIA), Mississippi is ranked 36th in the country as far as solar-friendliness goes.5 As such, it’s not surprising that the state has relatively few solar incentives available. Mississippi is very much still focused on oil and gas as the primary energy sources, but solar power is being adopted more and more readily. Below are the state incentives provided to residents in Mississippi.
Mississippi Clean Energy Initiative
Despite the slow move to solar energy, Mississippi as a whole does prioritize energy efficiency. The Clean Energy Initiative provides some tax incentives for manufacturers of solar equipment and equipment for harnessing other renewable energy sources — including hydroelectric equipment, biomass and wind energy.
This incentive doesn’t pertain specifically to residents, although homeowners will very likely eventually reap the benefits of the program. Future benefits will probably include lower costs for solar equipment, a greater selection of solar equipment brands and products, smoother installations, a better customer experience and a better solar energy presence in the state as a whole. This might also lead to additional incentives as solar power grows in prevalence.
Mississippi Solar Sales & Property Tax Exemption
Many solar-friendly states provide a sales tax exemption to lower the barrier to entry into the world of solar. Unfortunately, Mississippi does not waive sales tax on solar equipment, so residents will still have to pay tax on the equipment and the installation services for their solar panel system.
Some states also provide a property tax exemption that prevents property taxes from increasing as a result of going solar. Once again, Mississippi falls short in this regard and does not have a property tax exemption. Solar panels will cause your home value to increase, which, in turn, bumps up your assessed value. Your property taxes are a percentage of your assessed value, which means your effective tax rate will increase from installing solar. Adding panels to your home is still considered a worthwhile investment, but it will lead to higher property taxes.
Net Metering in Mississippi
Net metering is a policy that is widely adopted by utility companies across the country and is mandated by a number of states. Most residential solar arrays are grid-tied and let you pull electricity from the grid when the panels fail to generate enough — which is often the case at night and on cloudy days.
Interconnection allows your system to pass energy in the opposite direction as well, which is beneficial when your panels produce more kilowatt-hours than you are using. Net metering allows you to offset your bill for energy coming into your home using energy you send to the grid.
The Public Service Commission (PSC) in Mississippi does mandate a net metering policy for all investor-owned utilities (IOUs), but much of the state is serviced by electric co-ops. Co-ops are not required to provide access to net metering programs in Mississippi, but many still do. It’s best to check with your electricity provider for details on net metering and energy savings.
Local Incentives
Mississippi also falls short when it comes to local solar incentives, primarily because gas and oil are still the favored sources of energy throughout the state.
However, MS does value energy efficiency, so there are some related rebate programs and incentives that your solar company could tackle in addition to installing panels. It’s best to check with your utility company for rebates for energy-efficiency upgrades like installing LED lighting, high-efficiency or EnergyStar appliances, heat pumps, insulation, new windows, and more.
See also: See how much you can save by going solar with the EcoWatch Solar Calculator
Federal Solar Tax Credit
Given the overall lack of statewide solar incentives in Mississippi, the federal solar investment tax credit (ITC) is one of the most substantial incentives for converting to solar energy. As you might have guessed from the name, the ITC is provided by the federal government. The specific incentive is based on your solar PV system and amounts to 30% of the entire cost. In Mississippi, where the typical system totals $30,360, most homeowners will enjoy a federal tax credit in the amount of $9,108. This credit is applied to your income taxes owed for the year your system is installed.
The ITC is available for homeowners who install residential solar panels through 2032. It is scheduled to reduce to 26% in 2033 and 22% in 2034 before expiring in 2035.
Read More About Going Solar
FAQ: Mississippi Solar Incentives
The EcoWatch team gets questions regularly from Mississippi homeowners about solar incentives and ways to save money when going solar. Below are some of the questions you might have, which we see most often from other residents in your area. If you have specific questions that aren’t answered here, reach out to our team of solar experts at solar@ecowatch.com.
Unfortunately, Mississippi does not offer a state tax credit for solar installations, and there is no indication that one will be offered in the future. However, the federal solar tax credit is available to homeowners throughout the state. For installations completed through 2032, the ITC will be 30% of the total cost of going solar, or an average of $9,108 in Mississippi. This will dip to 26% in 2033 and won’t be available come 2035.
Yes, there are some solar incentives available in Mississippi in 2022. The most significant solar incentive is the federal solar tax credit, which is available at 30% of the entire photovoltaic system cost in 2022. Mississippi homeowners who are serviced by an investor-owned electric utility will have access to net metering, which helps offset electric costs. Customers of electric co-ops could also benefit from net metering, depending on the co-op.
There are also some minor rebates available from certain utility companies for energy-efficiency upgrades, but you’ll have to check for availability from your provider.
Unfortunately, there are no rebates available for solar equipment in Mississippi currently. The state as a whole still favors gas and oil as energy sources, although solar is slowly getting adopted. With that being said, there is a chance that you could enjoy some rebates for tangentially related energy efficiency upgrades, depending on your utility company.
Yes, solar panels will cause your property taxes to increase in Mississippi, and some homeowners feel this is a fairly significant downside to going solar. However, solar panels bump your property taxes only because they cause your property value to go up, so most homeowners still find solar a worthwhile investment.
Basically, your assessed value will increase by an average of 4.1% — based on data from Zillow — when you install a solar power system.6 In turn, your assessed value will increase, which causes a bump in your taxes. Mississippi currently does not offer a property tax exemption to prevent this from happening, although one could be available in the future, especially as solar conversions continue to grow in popularity.
