With an average annual sunlight of 4,693kJ/ m², Mississippi is ranked as the 13th sunniest state in America. It is no wonder investing in solar power would be an enticing and wise investment. But ever wonder what Mississippi solar incentives and rebates every property owner benefits from besides having a low monthly electric bill?
In July 2022, the Public Service Commission of Mississippi authorized the new Net Renewable Generation Rules that go far beyond most net metering mandated in the U.S. Under the new rules, property owners may be qualified for a rebate of $3,500 when they install rooftop solar in Mississippi, along with ongoing net metering benefits and solar incentives.
Given the need for other residential solar incentives in Mississippi, this new guideline would invigorate the lagging state for the solar industry. According to the Mississippi PSC commissioners' statements on the bipartisan decision, a crucial objective of the new regulations is to encourage the growth of blue-collar jobs in the solar industry of Mississippi.
The new ruling mandates a limit of $10 million for the yearly rebate budget for Entergy Mississippi and $5 million for Mississippi Power Co., requiring a minimum of 50% of the funds to be allocated to low-income customers. The regulations also specify that the utilities must provide an annual report on the number of low-income customers benefiting from the rebates.
Mississippi is one of only six states without state-wide net metering standards, and net metering remains entirely at the discretion of utility companies.
A new regulation was established in July 2022, which dictates that utilities must compensate for the total worth of electricity utilized and any surplus power supplied to the grid based on a dollar-for-dollar calculation.
Mississippi Power provides net metering customers with an additional payment of 2.5 cents/kWh above the avoided-cost rate (approximately 3 cents per kWh) for any surplus electricity they export to the grid, effective August 2022. Moreover, low-income residential customers utilizing net metering are eligible for an extra 2 cents/kWh payment in addition to the value avoided cost.
The TVA (Tennessee Valley Authority) utility offers a similar compensation model to customers producing solar electricity as solar incentives. The regulations now broaden this advantage to cover households with a yearly income of up to 250% of the federal poverty level, and the additional payment is guaranteed for 25 years. Mississippi Performance-Based Incentives (PBI) Mississippi is one of many states offering PBIs, which are considered solar incentives based on your system's actual power. Mississippi calls them for TVA customers. The compensation for your renewable energy system's output is calculated in kilowatt-hours (kWh) or BTUs, measured by the meter. The electricity generated is accounted forbys Solar Renewable Energy Credits (SRECs) with a value that varies according to the principle of supply and demand.
On top of these solar incentives, everyone in Mississippi also qualifies for a tax credit from the government. The Solar Investment Tax Credit (ITC) is valued at 26% of the system's expenses and can be subtracted from your federal income tax. However, in July 2022, regulators introduced new regulations that establish a limit of $10 million for the yearly rebate budget for Entergy Mississippi and $5 million for Mississippi Power Co. These rules require a minimum of 50% of the funds to be designated for low-income customers, and utilities must provide an annual report on the number of such customers benefiting from the program.
Upon the completion and approval of the project, the potential $3,500 rebates can be paid directly to the solar installers, simplifying the program 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) linked to their solar arrays.
Sadly Mississippi does not have a dedicated state rebate for solar panel installation, but some manufacturers, like LG, offer their solar rebates. These programs are usually time sensitive. For example, LG provides a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
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