Is solar worth it in Mississippi?
For a typical Mississippi home in 2026, solar is not worth it: about a 16.5-year payback and $8,581 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 16.5 yrs4.8 kW, paying cash
- Electricity price
- 14.8¢per kWh, U.S. 18.0¢
- Solar production
- 1,438kWh per kW per year
- Exports credited at
- ~41%Net billing (reduced export credit)
The numbers for a typical Mississippi home
| Electricity use | 1,154 kWh a month (Mississippi average) |
|---|---|
| Best-value system | 4.8 kW, producing 6,901 kWh a year (50% of use) |
| Price | $13,820 at about $2.65/W |
| First-year savings | $865 |
| Payback | 16.5 years |
| 25-year net | $8,581 (3.8% a year return) |
| Rate increase assumed | 2.2% a year, from Mississippi's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is cheap: 14.8¢ per kWh, 18% below the U.S. average (18.0¢), so each solar kWh saves less.
- Exported solar is typically credited at about 41% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,438 kWh per kW per year (ranked #16 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Mississippi
Net billing (reduced export credit). Mississippi's Net Renewable Generation rules pay for exports at the utility's avoided cost plus a 2.5 cent/kWh adder (plus 2 cents more for low/moderate-income households). That works out to well below retail. Netting is effectively instantaneous via dual-channel metering.
Avoided cost + 2.5 cents/kWh non-income-qualified; +2.0 cents additional for LMI (<=225% FPL); total roughly 5-8 cents.
- Netting: instantaneous
- Unused credits: Export value applied as bill credit; excess carried forward (verify utility).
- System size limit: 20 kW
- Fixed charges: Standard customer charges.
- Last major change: 2022 rule amendments (effective Jan 1, 2023); PSC suspended incentive programs Apr 2024, then unanimously reinstated Apr 2025.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Entergy Mississippi | 6¢/kWh | Avoided cost + 2.5 cents (+2 LMI). Exact avoided cost not verified. |
| Mississippi Power | 6¢/kWh | Avoided cost + 2.5 cents (+2 LMI). |
Solar incentives in Mississippi
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| PSC low/moderate-income solar rebate | low income | Rebate (reported $3,000-$3,500) for 3-6 kW systems for households <=225% FPL; or $2,000 battery rebate (one or the other). Annual budgets $10M Entergy MS, $5M MS Power. Eligibility: LMI households <=225% FPL, Entergy MS/MS Power | active |
| Battery storage incentive | battery incentive | $2,000 battery rebate under PSC rule (reinstated 2025; one source called it suspended in Jan 2026 - status uncertain). Eligibility: Entergy MS / MS Power customers | unknown |
What solar costs in Mississippi
A fair cash price is around $2.65 per watt before incentives. For the 4.8 kW system that fits a typical home, expect roughly $10,800 to $15,300; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 2,029
- Share of homes
- 0.1%
- Residential solar capacity
- 14 MW
- Growth over the past year
- +4.7%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Mississippi
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Entergy Mississippi | 384,493 | 14.6¢ | 1,210 kWh/mo | Not worth it |
| Mississippi Power | 158,206 | 16.5¢ | 1,139 kWh/mo | Close call |
| Coast Electric Power Association | 84,194 | 14.8¢ | 1,232 kWh/mo | Not worth it |
| Singing River Electric Cooperative | 73,398 | 14.2¢ | 1,212 kWh/mo | Not worth it |
| Southern Pine Electric Cooperative | 65,580 | 15.2¢ | 1,165 kWh/mo | Close call |
| Pearl River Valley El Pwr Association | 52,557 | 16.4¢ | 1,199 kWh/mo | Close call |
| 4-County Electric Power Association | 41,491 | 14.4¢ | 1,209 kWh/mo | Not worth it |
| Dixie Electric Power Association | 37,963 | 14.6¢ | 1,211 kWh/mo | Not worth it |
| Tombigbee Electric Power Association | 37,347 | 13.7¢ | 1,281 kWh/mo | Not worth it |
| Magnolia Electric Power Association | 31,161 | 16.9¢ | 1,092 kWh/mo | Close call |
| Central Electric Power Association | 31,032 | 13.6¢ | 1,273 kWh/mo | Not worth it |
| Northcentral Mississippi E P A | 29,392 | 14.0¢ | 1,424 kWh/mo | Not worth it |
| North East Mississippi EPA | 26,836 | 14.9¢ | 1,161 kWh/mo | Not worth it |
| Southwest Mississippi E P A | 23,095 | 16.2¢ | 993 kWh/mo | Close call |
| Tallahatchie Valley E P A | 21,509 | 13.6¢ | 1,332 kWh/mo | Not worth it |
| Delta Electric Power Association | 21,089 | 13.4¢ | 1,020 kWh/mo | Not worth it |
| Pontotoc Electric Power Association | 16,453 | 14.5¢ | 1,236 kWh/mo | Not worth it |
| Alcorn County Electric Power Association | 14,987 | 14.2¢ | 1,212 kWh/mo | Not worth it |
| City of Starkville | 12,799 | 13.4¢ | 841 kWh/mo | Not worth it |
| Natchez Trace Electric Power Association | 12,599 | 14.2¢ | 1,140 kWh/mo | Not worth it |
| Tishomingo County E P A | 10,997 | 14.0¢ | 1,126 kWh/mo | Not worth it |
| Prentiss County Electric Pwr Association | 10,994 | 12.1¢ | 1,191 kWh/mo | Not worth it |
| City of Tupelo | 10,646 | 12.4¢ | 1,095 kWh/mo | Not worth it |
| Tippah Electric Power Association | 10,534 | 14.7¢ | 1,145 kWh/mo | Not worth it |
| Monroe County Electric Power Association | 10,247 | 13.8¢ | 1,365 kWh/mo | Not worth it |
Solar by city in Mississippi
- Jackson16.6-yr payback · Not worth it
- Gulfport14.4-yr payback · Close call
- Southaven16.6-yr payback · Not worth it
- Biloxi14.4-yr payback · Close call
- Hattiesburg15.6-yr payback · Close call
- Olive Branch16.6-yr payback · Not worth it
- Tupelo19.8-yr payback · Not worth it
- Meridian15.6-yr payback · Close call
- Greenville16.1-yr payback · Close call
- Madison16.6-yr payback · Not worth it
- Pearl16.7-yr payback · Not worth it
- Clinton16.2-yr payback · Not worth it
- Horn Lake16.5-yr payback · Not worth it
- Oxford20.2-yr payback · Not worth it
- Starkville16.7-yr payback · Not worth it
- Brandon16.6-yr payback · Not worth it
Protect yourself when buying
- Check the license. Mississippi State Board of Contractors: residential builder/remodeler license for jobs over $10,000; electrical work requires appropriate electrical classification (plus local licensing). Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. No statewide solar access/HOA protection law.
- Community solar. No statewide community solar program.
Questions about solar in Mississippi
Is solar worth it in Mississippi in 2026?
For a typical Mississippi home, solar is not worth it. A 4.8 kW system costing about $13,820 after state incentives saves about $865 in the first year and pays back in about 16.5 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Mississippi?
A reasonable cash price is around $2.65 per watt before incentives, or roughly $10,800 to $15,300 for a 4.8 kW system.
Does Mississippi have net metering?
Mississippi's Net Renewable Generation rules pay for exports at the utility's avoided cost plus a 2.5 cent/kWh adder (plus 2 cents more for low/moderate-income households). That works out to well below retail. Netting is effectively instantaneous via dual-channel metering.
Is there a solar tax credit in Mississippi?
The 30% federal credit for homeowners ended for systems installed after 2025. Mississippi does not offer a state income tax credit for solar that we're aware of.
How do I check a solar installer's license in Mississippi?
Mississippi State Board of Contractors: residential builder/remodeler license for jobs over $10,000; electrical work requires appropriate electrical classification (plus local licensing).. Look up any installer with the state's license search at https://www.msboc.us/.
Policy research current as of October 2026; sources include pv-magazine-usa.com, mississippitoday.org, utilitydive.com. Electricity data: EIA, through July 2026. Found something out of date? Tell us.