Mississippi Solar Incentives (Rebates, Tax Credits & More in 2023)

In this guide to the solar rebates and incentives available in Mississippi, you’ll learn:

What incentives are available for solar conversions in Mississippi?
How do the solar benefit programs in Mississippi affect the cost of going solar and long-term energy savings in the area?
Are incentives for solar expected to change or disappear in Mississippi in the near future?

Find Local Solar Quotes
Get Quote
Join the 1,587 homeowners who got free quotes in the past 30 days.
Advertising Disclosure

Each product and or company featured here has been independently selected by the writer. You can learn more about our review methodology here. If you make a purchase using the links included, we may earn commission.

Do Mississippi Solar Incentives Make It Affordable for Homeowners to Go Solar?

While the cost-effectiveness of converting to solar has to be assessed on a household-by-household basis, the incentives available in Mississippi most certainly make going solar more affordable and accessible across the board.

The average cost of a residential solar system in Mississippi is around $30,360 before any incentives are applied, which is about $6,000 higher than the cost in most other states.

This total is based on the average cost per watt for PV equipment in MS of $2.64 and assumes you need the typical system size for the area of 11.5 kilowatts (kW), which is way above the national average.

The Magnolia State doesn’t have the best array of incentives, likely because it lacks a Renewable Portfolio Standard (RPS) to push renewable energy in the area forward.1 This, in combination with the state’s dependence on natural gas, is also likely why the Solar Energy Industry Association (SEIA) ranks the state as 34th in the country for solar adoption.2

However, Mississippi still has some solar perks available that help reduce the effective system costs in the area.

Badge icon


Best National Provider

Nationwide Service

EcoWatch rating

Average cost

Read full review now


  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage


  • Expensive
  • Customer service varies by local dealer
Badge icon

Mississippi Solar, LLC

Solar Veteran

Local Service

EcoWatch rating

Average cost

Badge icon

Solar Alternatives

Solar Veteran

Regional Service

EcoWatch rating

Average cost


  • Great warranty coverage
  • Outstanding customer service
  • Multitude of products and services


  • No leases or PPAs

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.

Solar Benefit Program in Mississippi Incentive Type Description Occurrence Estimated Dollar Amount You Can Receive
Federal Solar Investment Tax Credit (ITC) Federal Credits your income tax liability with 30% of your system value. Any unused credit can be rolled over for up to five years One-time: Gets applied once when you file your taxes after purchasing your system. Credits can roll over for five years after filing $9,108, on average, in Mississippi
Net Metering Local Provides credits to your electric bills for all excess energy you send to the power grid throughout the year Ongoing: Net energy metering credits will accrue and be used automatically as needed for the life of your renewable energy system Varies based on your energy bills, your system size and more
Local Incentives Local Cash-back incentives and other perks for efficiency upgrades (currently none for solar power equipment, in particular) Varies based on the specific perk Varies based on the incentive, the efficiency upgrade you’re completing and more

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

roof full of solar panels

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 $30,360 in Mississippi, the typical resident will see a credit value of around $9,108. If you can take the entire credit, this would bring the effective cost of your system down to around $21,252, 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 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 $9,000 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 $1,800 per year on average for five years following installation to take the full amount.

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. 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?

neighborhood house with solar panels

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 $9,108 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 2023, 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.


Below, we’ll answer some of the most common questions we see from Mississippians about how local benefit programs can help bring down the cost of converting to solar energy.

Blog author image
Article author
Dan Simms is an experienced writer with a passion for renewable energy. As a solar and EV advocate, much of his work has focused on the potential of solar power and deregulated energy, but he also writes on related topics, like real estate and economics. In his free time — when he's not checking his own home's solar production — he enjoys outdoor activities like hiking, mountain biking, skiing and rock climbing.
Reviewer image
Expert reviewer
Karsten is an editor and energy specialist focused on environmental, social and cultural development. His work has been shared by sources including NPR, the World Economic Forum, Marketwatch and the SEIA, and he is certified in ESG with the CFA Institute. Before joining EcoWatch, Karsten worked in the solar energy sector, studying energy policy, climate tech and environmental education. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

Comparing authorized solar partners

EcoWatch rating
Average cost
BBB Rating
Year founded
Service Area
Brands of Solar Equipment Offered
Warranty Coverage
  • 5.0
    • Most efficient panels on the market
    • National coverage
    • Cradle to Cradle sustainability certification
    • Great warranty coverage
    • Expensive
    • Customer service varies by local dealer
    Best National Provider
    SunPower Panels
    25-year all-inclusive warranty

Having trouble deciding? Click below and use our process to receive multiple quotes instead:

Get My Solar Quote