Mississippi may not have specific solar incentives for each state, such as property tax exemptions, but residents can still take advantage of the federal tax credit for solar energy. This credit is determined by the wholesale cost of energy, also known as avoided cost. For every kilowatt-hour (kWh) of solar energy sent to the grid, you'll get a credit of between 2.3 and 3.6 cents per kWh, plus a distributed energy credit adder of 2.5 cents. An additional 2 cents per kWh are added for residents whose incomes are below 225% of the federal poverty level.
The cost-effectiveness of converting to solar energy must be evaluated on a house-by-house basis, but the incentives available in Mississippi make solar energy more affordable and accessible overall. Mississippi does not have a true net measurement system, and instead the Public Service Commission (PSC) refers to the distributed generation rules that govern how solar energy owners are paid for the energy generated by their systems. If you're considering solar energy, it's best to install it as soon as possible to maximize your energy savings over time. The federal solar investment tax credit will have the biggest impact on the cost of using solar energy in Mississippi. In addition to the available sunlight, customers of the Tennessee Valley Authority (TVA) electric company can take advantage of other incentives for opting for solar energy in Mississippi.
Below is a list of all the incentives available to solar energy customers in MS, as well as a brief description of how each of them may affect the costs of your system.
- Federal Tax Credit: The federal government offers a tax credit for up to 30% of the cost of installing a solar system.
- Net Metering: Net metering allows you to sell excess electricity generated by your system back to your utility company at retail rates.
- Distributed Generation Credit Adder: This adder provides an additional 2.5 cents per kWh for customers who generate their own electricity.
- Low-Income Solar Incentive: An additional 2 cents per kWh are added for residents whose incomes are below 225% of the federal poverty level.
The main areas in which Mississippi can improve solar energy prospects are establishing an Renewable Portfolio Standard (RPS), offering tax benefits at the state level, and establishing clear rules for net measurement and interconnection that favor homeowners. The incentives available in Mississippi make it easier than ever before for homeowners to switch to solar power and start saving money on their electricity bills. With federal tax credits and net metering programs, you can get up to 30% off your installation costs and sell excess electricity back to your utility company at retail rates. Additionally, low-income households can receive an additional 2 cents per kWh from their utility provider. With all these incentives combined, it's no wonder why so many people are making the switch to solar power in Mississippi.