State solar incentives

Solar incentives in Mississippi to benefit from

Edited by: Andrei Gorichenskii

Sunny Mississippi is one of the best states for solar. Install solar panels, generate energy, and enjoy saving your family budget. And to save even more money, take advantage of solar incentives in Mississippi.

Key takeaways

  • Sunny Mississippi is one of the best states for producing renewable energy. And numerous federal and local financial incentives and rebates for solar power could make the idea pay off in the nearest future.
  • Mississippi residents can claim a 30% federal tax credit on the total cost of their solar system installation. It covers the entire quote, from the system itself to the installer’s work. The tax credit is available to both homeowners and companies.
  • Net metering allows homeowners to sell excess electricity generated by their panels back to the service companies for credits. Residential systems must be under 20kW. Other systems must be under 2MW. Rates and rollover to the next year are up to the utilities.
  • Energy Efficient Mortgages offers increased loan amounts to cover energy-efficient upgrades, including solar. Insured in two different forms: FHA and VA programs.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

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Join net metering program to cover your electric bills

The essence of net metering is the same across all states: you sell solar energy that you haven’t used into the commercial grid and gain credits from the utility company for it. The credits later can be used to cover your electric bills.

In Mississippi residential systems that are eligible for the net metering program must be under 20kW in size. When it comes to other systems, the cap is at 2MW. Check the rates and conditions with your electric supplier.

Energy Efficient Mortgages can help you to go solar faster

The Energy Efficient Mortgages (EEM) program allows you to quickly get more money for energy upgrades for your home or for a new property with preinstalled upgrades. These loans are insured through Federal Housing Authority (FHA) and Veterans Affairs (VA) programs.

If you qualify for an FHA loan, you do for the EEM program. Usually, the energy package that can be added to a standard FHA loan amounts to the cost of upgrades based on the home energy assessment; or the lesser of 5% of:

  • the Adjusted Value;

  • 115% of the median area price of a Single Family dwelling; or

  • 150% of the national conforming mortgage limit.

Solar systems, of course, qualify as energy-efficient upgrades, so your loan can be increased by the amount your system costs. Again, the cost of a PV system doesn’t amount to panels only but includes accessories, shipment and installation as well. Read more about the FHA program and apply on the U.S. Department of Housing and Urban Development website.

EEMs through the Veterans Affairs program are available for military personnel, reservists and veterans. The exact loan amount depends on your status and credit history. Check the guide on how to apply for the loan on the VA website.

Incentive/Program
DescriptionBenefitsEligibility/
Requirements
Notes
Federal ITC (30%)
30% tax credit on the total cost of solar system installation.
Reduces overall system cost, accelerates payback period.
Must own the system, meet IRS guidelines.
Applies to installation, equipment, and other associated costs.
Net Metering
Allows homeowners to sell excess solar energy back to the grid for credits.
Reduces or eliminates electricity bills.
Residential systems ≤20kW, other systems ≤2MW.
Rates and conditions vary by utility.
Energy Efficient Mortgages (EEMs)
Increased loan amounts for energy-efficient upgrades.
Provides additional financing for solar installations.
FHA and VA loan eligibility.
Loan amounts vary based on program and individual circumstances.


What are solar incentives, and why do they exist?
Governments are actively encouraging people to switch to solar power by offering money to help cover the costs. They want to make it easier for homeowners and businesses to install solar panels.

Putting in solar panels can be expensive, so governments offer various financial aids. One common way is through tax breaks. You can reduce the amount of taxes you owe based on the cost of your solar system. Some places even give you money back directly, like a cash refund, after installation.

Another way they help is through rebates. This means you get some of your money back after you've installed the solar panels, which lowers the overall cost.

Also, if your solar panels produce more electricity than you use, you can often sell the extra power back to the electric company. This can earn you money and help pay for the system.

Governments offer these incentives because solar energy is good for the environment. It reduces pollution and helps fight climate change. The solar industry also creates jobs and helps the economy. Plus, using solar power makes us less dependent on other countries for energy.

For you, this means saving money. You get help with the initial cost, your monthly electricity bills are lower, and you might even earn money by selling extra power. These programs make solar more affordable and help you save money while helping the planet.
Is it the right time to go solar?
It is a good question to ask if this is the right moment to switch to using solar energy. Let's really explore why now is a particularly favorable time to consider installing solar panels on your house.

First, let's talk about the financial side of things. Your electricity bill can feel like something that constantly requires more of your money. Solar panels can help you manage that expense. The cost of purchasing solar panels has significantly decreased, making them more affordable than they used to be.

At the same time, the cost of traditional electricity from your energy provider tends to increase over time. So, by generating your own electricity with solar panels, you are protecting yourself from those rising costs. You can think of it as securing a lower, fixed energy price for the future.

Also, there are often opportunities to receive financial benefits from the government. These incentives, like tax credits, help you reduce the amount you have to pay for your solar energy system. This makes it an even more financially sound decision.

Secondly, the technology used in solar panels is improving. Solar panels are like small power plants located on your roof. And these power plants are becoming more effective at their job. They are more efficient, which means they can convert more sunlight into electricity. This means you can produce more electricity from the same amount of sunlight.

And what happens when the sun is not shining? That is where batteries come into play. Batteries that store the extra solar energy are also becoming better. They can hold more energy for longer periods, so you can have electricity even during the night or on days with clouds.

Thirdly, let's consider the environmental impact. When we burn coal or natural gas to generate electricity, it creates pollution in the air. Solar energy is clean. It uses the sun, which is a natural and inexhaustible source of energy. By choosing to use solar energy, you are helping to reduce pollution and improve the health of the planet.

Fourthly, think about the value of your home. Installing solar panels can be seen as an improvement to your home. Many people prefer homes that have solar panels, and they are willing to pay a higher price for them. This means that your home could be worth more if it is equipped with solar panels.

Fifthly, having solar panels gives you greater control over your energy usage. You become less dependent on the power company, which can provide a sense of security. If there is a power outage, you might still have electricity if your solar system includes battery backup.

Finally, it is important to know that solar panels can work effectively in many different locations. People often believe that solar energy is only practical in very sunny areas. However, this is not true. Solar panels produce energy wherever the sun shines. Even on days with clouds, solar panels are still able to produce electricity. And advancements in technology are making solar panels even better at collecting energy in situations with less light.

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Looking to build a home solar system? Check out solar panels that we have for sale in Mississippi

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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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