Is Solar Worth It in Mississippi in 2026?
Mississippi sits at a low 32.6N latitude, which means strong, direct sun most of the year — a home near Jackson can expect roughly 1,399 kWh of production per installed kilowatt per year (NREL data). That's solid production, though not the best in the Sun Belt. The bigger issue is what changed underneath the industry: the 30 percent federal tax credit that used to make the math work for a Mississippi install ended for systems completed after December 31, 2025. There's no phase-down — it's gone for anyone who owns their system outright.
What's left is not nothing. Mississippi rebuilt its solar rules in 2022, and instead of a tax-credit playbook, the Public Service Commission built something rare: a $3,500 check paid straight to your installer at completion, no waiting for tax season. But exported power gets paid well below retail, and Mississippi's electricity is cheap to start with — about 14 cents per kWh — so there's less bill to offset than in a high-rate state. Solar can still pencil out here, especially if you use most of what you generate rather than exporting it, but payback is long and depends heavily on usage. This page walks through the real numbers.
Mississippi Electricity Prices Are Climbing, From a Lower Floor
Solar is a bet against future electricity prices — every kWh your roof makes is one you don't buy from the utility. Mississippi's rates are among the lowest in the country, but "low" and "flat" aren't the same thing.
Full Mississippi electricity price data (1990–2025)
| Year | Mississippi (¢/kWh) | US avg (¢/kWh) |
|---|---|---|
| 1990 | 6.9 | 7.8 |
| 1991 | 6.9 | 8.0 |
| 1992 | 7.0 | 8.2 |
| 1993 | 7.1 | 8.3 |
| 1994 | 7.1 | 8.4 |
| 1995 | 7.0 | 8.4 |
| 1996 | 7.0 | 8.4 |
| 1997 | 7.0 | 8.4 |
| 1998 | 7.0 | 8.3 |
| 1999 | 6.8 | 8.2 |
| 2000 | 6.9 | 8.2 |
| 2001 | 7.4 | 8.6 |
| 2002 | 7.3 | 8.4 |
| 2003 | 7.6 | 8.7 |
| 2004 | 8.2 | 9.0 |
| 2005 | 8.7 | 9.5 |
| 2006 | 9.7 | 10.4 |
| 2007 | 9.4 | 10.7 |
| 2008 | 10.4 | 11.3 |
| 2009 | 10.2 | 11.5 |
| 2010 | 9.9 | 11.5 |
| 2011 | 10.2 | 11.7 |
| 2012 | 10.3 | 11.9 |
| 2013 | 10.8 | 12.1 |
| 2014 | 11.3 | 12.5 |
| 2015 | 11.3 | 12.7 |
| 2016 | 10.5 | 12.6 |
| 2017 | 11.1 | 12.9 |
| 2018 | 11.1 | 12.9 |
| 2019 | 11.3 | 13.0 |
| 2020 | 11.2 | 13.2 |
| 2021 | 11.6 | 13.7 |
| 2022 | 12.4 | 15.0 |
| 2023 | 13.2 | 16.0 |
| 2024 | 13.4 | 16.5 |
| 2025 * | 14.0 | 17.3 |
Source: US EIA, average residential retail electricity price. Values in cents per kWh. * 2025 is preliminary.
Mississippi homes pay about 14 cents per kWh as of the EIA's preliminary 2025 figures, up roughly 61 percent since 2005. That's a smaller dollar move than in high-cost states, but the percentage climb tells the same story: the last decade alone has run about 2.2 percent a year. A cheap rate today doesn't guarantee a cheap rate in 15 years, and a system sized to your usage keeps paying the same discount no matter which way rates move next.
The Mississippi Sun, Month by Month
Panels respond to how high the sun climbs and how long it stays up, not to air temperature. At 32.6N, Mississippi's winter sun angle stays higher than most of the country north of it, which keeps production more even across the year than you'd expect from a state known for humid, hazy summers.
Mississippi monthly solar production data
| Month | kWh per installed kW |
|---|---|
| Jan | 101 |
| Feb | 97 |
| Mar | 123 |
| Apr | 130 |
| May | 131 |
| Jun | 127 |
| Jul | 121 |
| Aug | 125 |
| Sep | 118 |
| Oct | 128 |
| Nov | 108 |
| Dec | 91 |
| Year | 1399 |
Source: NREL PVWatts typical-year estimate (Jackson), per installed kW at latitude tilt.
Expect spring and early summer to be your strongest months, before the thickest afternoon haze of deep summer clips peak output. Winter production drops but doesn't disappear. Because Mississippi's export credit is worth much less than the retail rate you pay for power you use yourself, the months that matter most for your wallet are the ones where your own usage lines up with your own production — not the months with the biggest export numbers.
What Solar Costs in Mississippi in 2026
Most Mississippi installs run about $2.40 to $2.90 per watt installed, before incentives. Mississippi's average system also runs larger than the national norm — around 11.8 kW is typical — which puts many installs above $28,000 before anything is subtracted. Because the federal 25D credit doesn't apply to systems completed after 2025, that sticker price is close to what a cash or loan buyer actually pays in 2026.
| System Size | Typical 2026 Cost | Roughly Offsets | Fits |
|---|---|---|---|
| 5 kW | $12,000 to $14,500 | ~7,000 kWh/yr (~$82/mo at 14¢) | Smaller home, lower usage |
| 8 kW | $19,200 to $23,200 | ~11,200 kWh/yr (~$131/mo) | Average-plus Mississippi home |
| 12 kW | $28,800 to $34,800 | ~16,800 kWh/yr (~$196/mo) | Large home, close to typical MS system size |
Mississippi doesn't exempt solar equipment from sales tax, so add your local rate on top of these figures — unlike some neighboring states, there's no carve-out here. Get at least three quotes and compare price per watt and warranty terms; a big gap between bids often means one installer is still pricing as if the federal credit applies.
Estimate Your Mississippi Payback
The calculator below is set to Mississippi's average electricity rate and local sun production. Enter your own monthly bill to see an estimated system size, payback period, and 25-year outlook. Mississippi rates have climbed about 2.2 percent a year over the last decade — a reasonable starting point for the inflation field, though you should test a flatter and a steeper future given how much rates can swing with fuel costs.
Mississippi Solar Incentives That Still Exist in 2026
Separate what's gone from what Mississippi actually offers.
- Gone — the 30 percent federal credit: The federal Residential Clean Energy Credit ended for installations completed after December 31, 2025, with no phase-out. If a Mississippi installer's quote still nets out a 30 percent credit for a system you own, that's a red flag.
- Still here — the $3,500 point-of-sale rebate: Created by the PSC's July 2022 rule, this rebate is paid directly to your installer at completion, not claimed on a tax return a year later. It's funded through utility-specific annual caps ($10 million for Entergy Mississippi, $5 million for Mississippi Power), and at least half of each utility's yearly budget is reserved for low-income households at or below roughly 225 to 250 percent of the federal poverty level. Ask your installer to confirm the current-year cap isn't already exhausted.
- Bonus for qualifying low-income households: Qualifying participants also lock in an extra 2 cents per kWh on their export credit for 15 to 25 years, on top of the standard rate below.
- No state tax credit, no sales tax exemption, no property tax exemption: Mississippi has none of the three most common state-level solar breaks. The state's only renewable ad valorem exemption (Miss. Code §27-31-46) is reserved for large-scale projects with at least $100 million in capital investment — it doesn't extend to a rooftop system.
- Maybe — a battery rebate: Mississippi Power had offered a $2,000 battery-storage rebate, but it's currently listed as suspended. Verify directly with the utility before counting on it.
- Partially — leases and PPAs: Third-party-owned systems can still capture a separate federal business credit through 2027, but it belongs to the leasing company, not you. Compare any lease against a cash quote before assuming it's the better deal.
How Net Billing Works in Mississippi
Mississippi doesn't run traditional 1:1 net metering. Instead, the PSC's rule — first adopted in 2015, substantially revised in July 2022, and still being updated through utility filings into early 2025 — sets up what the state calls net billing, or solar buyback. Power you generate and use immediately offsets your bill at the full retail rate. Power you send back to the grid gets credited separately, at a rate well below retail.
Per the PSC's January 2025 order, Entergy Mississippi pays 5.5 cents per kWh for exported power from standard customers, and 7.5 cents per kWh for qualifying low-to-moderate-income customers — a retail rate runs roughly 2 to 3 times higher. Mississippi Power filed its own updated tariff, RENM-3, in December 2024 to replace RENM-2. One feature works in your favor: unlike some states' expiring credits, Mississippi's export credits don't expire and roll over indefinitely. Residential systems are capped at the lesser of 110 percent of your annual peak demand or 20 kW, sited on your own property. Confirm your utility's current export rate before you sign — these numbers move.
Why Mississippi Built a Rebate Instead of a Tax Credit
Before July 2022, essentially no one in Mississippi had rooftop solar — about 547 homes statewide. The PSC's answer wasn't a bigger tax credit; it was a check. A $3,500 point-of-sale rebate paid to the installer removes the two biggest barriers for lower-income households: needing enough tax liability to use a credit, and needing to front the entire cost for a year before getting anything back. Pairing that with a rule that at least half of each utility's rebate budget goes to low-income customers, plus a 15-to-25-year bonus export rate for those households, is a genuinely different approach than most states take. If you qualify under the income threshold, ask your installer to walk through both the rebate and the bonus adder.
How to Go Solar in Mississippi
Work through these steps before you sign anything.
- Pull your last 12 power bills and calculate your true average monthly usage — sizing your system to actual usage matters more here than in high-export-value states.
- Confirm your roof faces south, east, or west with minimal shade, and has at least 10 to 15 years of life left. If not, replace the roof first.
- Ask each installer to confirm the $3,500 rebate is still available under your utility's current-year cap, and whether you qualify for the low-income bonus export rate.
- Get at least three quotes, and make sure none assume a 30 percent federal credit for a system you'll own outright.
- Confirm your utility's current export rate (Entergy Mississippi or Mississippi Power's RENM-3 tariff) and your system-size cap before signing.
- Have your electrical panel checked for capacity — older Mississippi housing stock sometimes needs an upgrade to add solar and, eventually, a battery.
For how panels work, sizing, and buying versus leasing in general, read our main solar panels guide — this page covers what's specific to Mississippi.
Sources
Figures on this page are 2026-current. Rates: US EIA, Electric Sales, Revenue, and Average Price (2025 preliminary). Federal credit repeal: One Big Beautiful Bill Act, P.L. 119-21. Net billing rule and export rates: Mississippi PSC Net Metering Rule and the PSC Consumer Guide. Entergy export rates: Entergy Mississippi. Rebate background: Utility Dive and SEIA. Costs: EnergySage and DSIRE. Production: NREL PVWatts. We review these figures every six months.