Solar Panel Laws in Mississippi

The great state of Mississippi is named after the river that bisects the nation. Mississippi has had its successes, from producing celebrities like Oprah and Kermit the Frog to hosting the Port Gibson Festival.

Though it has had its challenges, too, hurricane Katrina left a wake of devastation. The Gulf Of Mexico oil spill by oil giant British Petroleum (BP) added more problems to the coastline, left the state in a cleanup daze and the economy in ruin.

The state’s budget has mainly catered to urgent matters, leaving little for solar and other renewable energy ideas. Mississippi is a sunny state that receives sunlight throughout the year. Days in Mississippi can receive up to five peak hours of sunlight. The state can have up to 200 sunny days in a year.

Key Takeaways

• With up to 200 sunny days a year, Mississippi has significant solar potential, allowing solar PV systems to produce 25% more electricity than in other states.
• The Tennessee Valley Authority (TVA) offers incentives, including a $1,000 rebate and favorable buyback rates, to encourage homeowners to switch to solar power.
• Mississippi lacks state tax credits, net metering policies, and tax exemptions for solar PV systems. Still, homeowners can benefit from the federal Solar Tax Credit (ITC), which provides a 30% tax deduction on the total system cost.

Introduction

This tremendous solar potential has not been utilized to benefit the citizens of Mississippi. Most states receive an average of 4 hours of peak sunlight, meaning that a solar PV system installed in Mississippi can produce 25% more electricity than in other states.

Fortunately, some incentives and rebates in the state encourage homeowners to upgrade to solar power.

The Tennessee Valley Authority (TVA), the largest utility in Mississippi, has created a program known as Green Power Switch (GPS). This program offers rebates to customers who switch to solar power. The rebate is $1,000, and after that, the company buys all the electricity you provide to the grid at a price higher than the retail price.

By allowing residents to earn profits from their environmentally conscious investment, upgrading to renewable energy has been made an attractive ordeal.

An ideal solar system needs to cater fully to your household needs. A 5 kW solar PV is enough to cater to the energy needs of a regular household. The average price of a 5kW system is $20,000. The payback period for the investment is around 14 years. It takes longer in Mississippi because electricity is cheap.

The average price of electricity is $0.12 per kilowatt-hour. The payback period is calculated by dividing the initial cost of solar PV and the savings you get by not paying for electricity.

The benefit of switching to solar is that you start generating power right after installation. In the first year, you can save up to $900 in utility bills alone. Coupled with tax credits and rebates, you will only add money to your pocket after investing in solar power.

Federal Solar Tax Credit

Otherwise known as the Investment Tax Credit (ITC), this federal program cuts 30% of your solar PV system’s total cost from your taxes. The total cost includes the solar panels, installation costs, and other components used.

You can deduct 30% of the total cost from the due taxes. If your system costs $20,000, your tax credit will be worth $6,000. You can deduct the whole amount in the first year.

If you don’t pay enough taxes to allow you to get the credit in one go, you can split the amount over to the next subsequent years.

This incentive is only available to homeowners who buy a solar PV system at once, either by cash or a solar loan. To get maximum savings from your system, you should use cash. You can use a loan if you are a bit low on funds. When you qualify for the tax credit, you can use that to pay your loan’s first installment.

Mississippi doesn’t offer any state tax credits for the purchase of solar equipment.

Net Energy Metering in Mississippi

Net metering is a system that allows customers who have upgraded to solar power to remain connected to the grid. When your solar panel produces more energy than you need in your household, the extra energy is sent to the grid for use elsewhere. The utility company offers you solar credits for the amount of energy you send to the grid.

When your solar panel produces less power, you can use power from the grid to power up your house, i.e., during the night or winter season. These credits can be used to offset your bill.

There is no net metering policy in Mississippi. This means that the law does not require utility providers to provide net metering benefits to their customers. The utility companies set their own rules for plugging homeowners into the grid. Utility providers have, however, opted to include net metering as one of the services they provide.

TVA, the largest utility provider in Mississippi, offers net metering. Their net metering policies are excellent and encourage homeowners to go solar. They purchase power from households at 2 cents above the retail price of $0.14. This means more savings on electricity costs.

There’s no standard interconnection policy either. This means that utilities also set rules for connecting users to the grid.

Mississippi Tax Exemptions

The state of Mississippi doesn’t exempt solar PV systems from any taxes.

If you buy a solar panel, you must pay sales tax. After installing your solar system, which increases your house’s value, you will have to pay extra taxes for the increase in value.

Case Study: Residential Solar Installation in Mississippi

Background

Biloxi, located along the Gulf Coast of Mississippi, presents unique opportunities and challenges for solar energy adoption. Known for its sunny weather, Biloxi offers a prime environment for solar panel installations despite the state’s limited solar incentives.

Project Overview

Our team at Solar Panels Network USA embarked on a project to install a 5 kW solar PV system for a residential property in Biloxi. The homeowner, motivated by the desire to reduce their carbon footprint and save on electricity bills, sought our expertise to navigate the complexities of solar panel installation in Mississippi.

Implementation

Initial Assessment: We conducted a comprehensive site assessment, evaluating the roof’s orientation, shading, and structural integrity. Given Biloxi’s ample sunshine, the location was ideal for maximizing solar energy production.

System Design: We designed a system tailored to the household’s energy consumption, using high-efficiency solar panels and an inverter to ensure optimal performance. The design phase also involved integrating the TVA’s Green Power Switch program to leverage available rebates and favorable buyback rates.

Installation: Our skilled technicians installed the solar panels, ensuring minimal disruption to the household. The installation included a robust mounting system to withstand Biloxi’s coastal weather conditions, particularly the high winds and occasional hurricanes.

Grid Connection: Despite Mississippi’s lack of a state-mandated net metering policy, we facilitated a seamless connection to the grid through the TVA. The homeowner could now sell excess energy back to the grid at 2 cents above the retail rate, providing additional financial benefits.

Results

Energy Production: The installed system harnessed Biloxi’s 200 sunny days effectively, producing 25% more electricity than similar systems in less sunny states. This efficiency translated into significant savings on the homeowner’s electricity bills, estimated at around $900 in the first year alone.

Financial Benefits: By utilizing the federal Solar Tax Credit (ITC), the homeowner reduced the upfront cost of the system by 30%, making the investment more affordable. The TVA’s $1,000 rebate and the advantageous buyback rates further enhanced the financial viability of the project.

Environmental Impact: The transition to solar energy significantly reduced the household’s carbon footprint, contributing to a more sustainable and eco-friendly community in Biloxi.

Summary

This residential solar installation in Biloxi showcases the potential for solar energy in Mississippi, despite the state’s limited support for renewable energy initiatives. Through strategic use of available federal and local incentives, combined with Biloxi’s natural solar advantages, we demonstrated that solar energy is a viable and beneficial option for homeowners in the region.

Expert Insights From Our Solar Panel Installers About Solar Panel Laws in Mississippi

Navigating solar incentives in Mississippi can be complex, but the potential savings are significant with the right guidance. The TVA’s Green Power Switch program, for example, offers a $1,000 rebate and advantageous buyback rates that can make a substantial difference in your return on investment.

Senior Solar Installer

Despite the absence of state-level incentives, the federal Solar Tax Credit (ITC) is a robust benefit for Mississippi homeowners. This credit allows for a 30% deduction on the total system cost, which can significantly reduce the initial financial burden of installing solar panels.

Lead Solar Technician

With up to 200 sunny days a year, Mississippi’s solar potential is outstanding. Even though the state’s policies might not be the most supportive, the natural advantages and existing programs like TVA’s can make solar installation a highly rewarding venture.

Solar Energy Consultant

Experience Solar Excellence with Us!

Trust in Solar Panels Network USA, where our seasoned experts deliver top-quality solar solutions for homes and businesses nationwide. With a legacy of countless successful installations and a commitment to sustainable energy, we’re your reliable partner in the solar journey. Ready for a brighter, eco-friendly future? Call us now at (855) 427-0058 and harness the power of the sun!

Map image by Wikimedia Commons User: TUBS / CC-BY-SA-3.0