As of December 2020, the average cost of a solar panel installation in Mississippi is around $2.64 per watt which is lower than the average price across the US. The total cost of a 6kW solar system will not exceed $11,717 after claiming the 26% federal solar tax credit. Unfortunately, the installation price in Mississippi state is not expected to go down due to import tariffs introduced by the Trump administration in 2018.
The Federal Investment Tax Credit – a governmental perk that allows all solar panel buyers to get a 26% deduction of the installing cost from federal taxes. For example, if your solar system costs $15,000, your tax credit would be $3,900. Deduction will be lowered by 5.0% in 2021 and will be gone the year after unless new legislation is introduced.
Tennessee Valley Authority utility (TVA) feed-in tariff – similar to the Net Metering Program, the TVA program offers a $1000 rebate for going solar and a feed-in tariff which is equivalent to the retail electricity price plus an additional $0.04/kWh. However, program benefits are available only for those who live in an area served by the TVA company.
Mississippi does not have a variety of policies in place to help keep the renewable energy market moving forward with state incentives and rebates. However, the falling cost of solar equipment and installation together with the 26% Federal tax rebate are compelling reasons to go solar in Mississippi.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.