Solar Incentives in Mississippi
Mississippi homeowners considering rooftop solar in 2026 have access to three active programs. Under the Mississippi Distributed Generation and Interconnection Rule, adopted by the Mississippi Public Service Commission (PSC) on October 4, 2022, customers with qualifying distributed generation systems may interconnect to the grid and receive a bill credit for exported energy based on the utility's avoided cost plus a 2.5 cents/kWh adder; export rates are set through individual utility tariffs and can vary, so homeowners should confirm their specific rate with their utility. Separately, the rule created a Low-Income Customer Solar Adder: the first 1,000 qualifying low-income customers statewide to install a solar net metering system receive an additional 2 cents/kWh bill credit on top of the standard credit, applied to total generation, for a 25-year term, administered through Mississippi Power and Entergy Mississippi rate schedules. Mississippi Power also offers a one-time $2,000 cash incentive to residential net metering customers who install qualifying battery storage alongside their distributed generation system.
On the federal side, the residential Clean Energy Credit under §25D — commonly called the 30% solar tax credit — expired for systems placed in service after December 31, 2025, under the One Big Beautiful Budget Act (Pub. L. 119-21). New residential solar installations completed in 2026 do not qualify for that credit, which meaningfully lengthens typical payback periods compared to prior years.
Mississippi's residential electricity rate averaged approximately 16.30 cents/kWh as of March 2026, up roughly 1.66 cents year-on-year. Without the federal credit, payback timelines depend more heavily on system output, utility export rates, and any applicable rebates; individual results will vary.
These figures are verified as of June 2026 against official sources; programs and rates change with each legislative session and PSC rate case, and the Mississippi Public Service Commission (psc.ms.gov) is the authoritative source for current program terms.
Federal credit update. The federal residential Clean Energy Credit (the 30% “solar tax credit” under §25D) expired for systems placed in service after December 31, 2025. New 2026 residential installs do not qualify; a 2025 install can still be claimed on a 2025 return (IRS Form 5695). What this means for 2026 →
Current solar incentives in Mississippi
Net Metering / Distributed Generation Compensation (Mississippi Distributed Generation and Interconnection Rule)
The Mississippi Public Service Commission's net metering framework was revised and renamed the Mississippi Distributed Generation and Interconnection Rule, adopted October 4, 2022. Customers with qualifying distributed generation (such as rooftop solar) may interconnect to the grid and consume their own generation; energy exported to the grid is credited on the customer's bill at the utility's avoided energy cost plus a Commission-approved adder of 2.5 cents per kWh. The rule applies to the two investor-owned utilities, Mississippi Power and Entergy Mississippi. Residential systems are capped at the lesser of 110% of the customer's annual peak demand or 20 kW.
| Amount | Exported energy credited at the utility's avoided cost plus a 2.5 cents/kWh adder. Residential system size capped at the lesser of 110% of annual peak demand or 20 kW. |
|---|---|
| Who qualifies | Residential and other retail customers of Mississippi's two investor-owned utilities (Mississippi Power, Entergy Mississippi) installing qualifying distributed generation. Municipal utilities and electric cooperatives are not bound by the rule. |
| Administered by | Mississippi Public Service Commission (PSC); implemented through utility tariffs |
Source: Mississippi Distributed Generation and Interconnection Rule (adopted Oct. 4, 2022); MPSC Consumer Guide to Solar Power in Mississippi Official source →
Low-Income Customer Solar Adder
As part of the Mississippi Distributed Generation and Interconnection Rule, the first 1,000 qualifying low-income customers statewide to install a solar net metering system receive an additional 2 cents per kWh bill credit on top of the standard net metering credit. The adder applies to a customer's total generation and runs for a fixed term from the date the customer begins net metering service. Qualification requires household income at or below 225% of the Federal Poverty Level, certified through Catholic Charities. This is the program the utilities (Mississippi Power, Entergy Mississippi) administer for low-to-moderate income residential solar customers.
| Amount | Additional 2 cents/kWh bill credit, capped at the first 1,000 qualifying low-income customers statewide; term is 25 years per the utility net metering rate schedules (the MPSC consumer guide references a 15-year term — confirm exact term against the current utility tariff). |
|---|---|
| Who qualifies | Residential customers of Mississippi Power or Entergy Mississippi with household income at or below 225% of the Federal Poverty Level (certified by Catholic Charities), among the first 1,000 qualifying low-income net metering customers. |
| Administered by | Mississippi Public Service Commission; administered via Mississippi Power and Entergy Mississippi net metering rate schedules |
Source: Mississippi Distributed Generation and Interconnection Rule low-income adder provision; MPSC Consumer Guide to Solar Power in Mississippi Official source →
Mississippi Power Battery Storage Cash Incentive
Under Mississippi Power's Renewable Energy Net Metering rate schedule (filed pursuant to the MPSC distributed generation rule), residential net metering customers who install qualifying battery storage with their distributed generation system are eligible for a one-time cash incentive. This is a utility-administered rebate specific to Mississippi Power customers; Entergy Mississippi customers should consult that utility's own net metering rate schedule for any comparable incentive.
| Amount | One-time cash incentive of $2,000 to residential customers installing qualifying battery storage (per Mississippi Power's Renewable Energy Net Metering rate schedule). |
|---|---|
| Who qualifies | Residential Mississippi Power net metering customers installing qualifying energy storage with their distributed generation system. |
| Administered by | Mississippi Power (regulated by the Mississippi Public Service Commission) |
Source: Mississippi Power Renewable Energy Net Metering (RENM) rate schedule Official source →
Verification note. Some official source pages for this state block automated access from our servers, so one or more figures here rest on the underlying statute or an official search result pending a final browser check. The cited official source is authoritative — confirm current terms there before you rely on a figure.
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Programs verified as of June 2026 against official state and federal sources (each cited above); refreshed quarterly as legislatures and utility rate cases change the rules. How we verify this data. This page is informational only — not tax or legal advice.