Mississippi solar 101: must read before you buy solar panels
Benefit from a PV system
5.09 peak sun hours
There is enough sun in Mississippi to give solar power a chance
2 years payback time
A solar power system in Mississippi pays for itself a couple of times during its lifespan
Gain credits with Net Metering program
Sell your solar energy into the grid and lower your electricity bill
Reduce the cost of your system by 26%
Get a quarter of the PV system cost off your taxes with the Federal Solar Tax Credit
Energy Efficient Mortgages
Take advantage of the EEM program to go solar faster
Mississippi #21 in the US
- $63 636/year Average savings from going solar in Mississippi
- 14 472 kWh/year Average electricity consumption of a FL household
- 7 525 kWh/year AC energy output of a 5 kW solar system installed in Mississippi
- 11 ¢ /kWh The cost of electricity today in Mississippi
- 23 ¢ /kWh The forecast average utility price over the next 25 years
- $0.5/WAverage gross price of a solar power system as of May 2021
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Solar laws, incentives and rebates in Mississippi you need to know
Save 26% of your PV system cost with Federal Solar Tax Credit
The main solar incentive that works across all United States is the Solar Investment Tax Credit (ITC) program. By applying to this program, all Americans can deduct 26% of the total cost of their installation from the income tax. The PV system cost doesn’t amount to only how much you’ve spent on your solar panels, but includes the shipping and installation as well. To claim the ITC, complete all the necessary forms and submit them when filing your taxes. It makes sense to hurry up: in 2023 the Tax credit decreases to 22% and after that it’s 10% for commercial systems only.
Join Net Metering program to cover your electric bills
Solar system pays for itself primarily through the Net Metering program. The essence of it 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 20 kW in size. When it comes to other systems, the cap is at 2 MW. Customers of Entergy Mississippi and Mississippi Power can sell their excess electricity for bill credits based on the utility’s current avoided energy cost rate plus a temporary 2.5 cents per kWh supplement, approved by Mississippi Public Service Commission.
The solar law in Mississippi also obliged Entergy Mississippi and Mississippi Power to offer 2 cents/kWh bonus for low-income customers with household income at or below 200% of the federal poverty level. The bonus is issued for 15 years for the first 1,000 eligible participants.
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 percent of the median area price of a Single Family dwelling; or
- 150 percent 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 here.
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 VA loan here.
Consult with installer about solar installation requirements in Mississippi
In most states you have to get a permit to install solar panels on your roof. However, Mississippi Public Service Commision doesn’t mention anything about such permits in their Consumer’s guide. You will, however, have to cooperate with the electric company to connect your system to the grid. Keep in mind that the utility can impose fees on you for connecting to the grid. The installers usually know all the details about the installation and requirements for solar systems in Mississippi.
Solar panels help Mississippians survive hurricanes and tornadoes
Mississippi suffers from around 40 tornadoes of a different scale every year. What is more, it has been hit by 19 hurricanes in the last 170 years, eight of which were at least Category 3 with winds of 111 mph or higher. During natural disasters the commercial grid is often down and the fuel for gas generators can be hard to come by. Solar panels survive storms and hurricanes very well: they are made to withstand 140 mph winds and an off-grid system can be a reliable source of energy in extreme weather conditions. Therefore, purchasing solar panels is a wise and a far-sighted choice in Mississippi.