Solar in Mississippi: market, Entergy MS and net billing reality

Market snapshot

Solar in Mississippi by the numbers

Installed capacity

370 MW

Homes powered

50K

Solar share of electricity

1%

Solar jobs in state

400

Typical cost per watt

$2.80

US ranking

#37

Mississippi's residential solar market has grown slowly compared with neighbouring states because of non-retail net metering across both major investor-owned utilities. Jackson metro and the Gulf Coast dominate residential; rural Mississippi is thin. The 2024 Public Service Commission order expanded the net metering size limit to 50 kW but kept the avoided-cost compensation rate.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in Mississippi

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, Mississippi has these state and local programmes.

No state solar tax credit

Mississippi does not offer a state income tax credit for residential solar. The 30 percent federal Residential Clean Energy Credit remains the primary tax-based incentive.

No state property-tax exemption

Mississippi does not have a statewide property-tax exemption for residential solar. The added value may be included in assessment at the county level.

Entergy Mississippi Solar Energy Allowance (limited availability)

Entergy Mississippi has offered a limited solar incentive programme in prior years; current structure varies. Confirm with Entergy MS before quoting.

Permits and interconnection

Permits and interconnection

Permit timelines in Mississippi vary by jurisdiction. Jackson, Gulfport, Hattiesburg and Tupelo commonly take 3 to 5 weeks for residential. Rural counties can be faster. SolarAPP+ is not accepted. Interconnection with Entergy MS or Mississippi Power typically runs 4 to 8 weeks post-install.

Running a solar company here

Running a solar company in Mississippi

Running a solar company in Mississippi means working in a market constrained by non-retail export compensation. The best Mississippi operators size systems to self-consumption rather than oversize for export, factor the monthly minimum charge into payback calculations, and sell on long-term rate protection rather than fast payback. Hurricane and tropical storm exposure on the Gulf Coast requires proper structural attachment. Lead costs run $80 to $150 on Google search, among the lowest in the US.

Cities we cover

Solar in Mississippi metros

• Solar in Jackson

Questions people ask

Solar in Mississippi: FAQ

Does Mississippi have net metering?

Not retail-rate. Mississippi credits residential solar exports at the utility's avoided cost rate (approximately $0.025 to $0.035 per kWh), substantially below the retail rate of about $0.13. The 2024 PSC order raised the system size limit to 50 kW but did not change the compensation rate.

How much does solar cost in Mississippi?

Residential solar in Mississippi averages around $2.80 per watt installed, meaning a typical 7 kW system costs about $19,600 gross. After the 30 percent federal tax credit, net cost is approximately $13,700. Mississippi has no state solar tax credit.

Is solar worth it in Mississippi?

For Mississippi homes with high electricity use and south-facing roofs sized to self-consumption, yes but slowly: payback typically runs 12 to 16 years with the federal tax credit. The combination of non-retail export compensation, low retail rates, and no state incentives stretches payback compared with retail-NEM Southeast peers.

Why is Mississippi solar economics worse than neighbouring states?

Mississippi's non-retail net metering regime is substantially less favourable than Louisiana's net billing (slightly higher avoided cost rate) or Alabama Power's structure (which also has a backup charge). Payback is longer in MS than in states like Georgia, Tennessee or Arkansas where either state incentives or utility structure makes residential solar more economically viable.