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Is Solar Worth It in Mississippi in 2026?

Complete analysis of solar costs, incentives, net metering, and payback for Mississippi homeowners — without the federal ITC.

Cost Per Watt

$2.60

installed

Electricity Rate

$0.117

per kWh

Payback (No ITC)

14.6 yr

current reality

Payback (With 30% ITC)

10.2 yr

hypothetical

25-Year ROI

71%

return on investment

Incentive Breakdown — Mississippi

Available incentives for a typical 7kW residential solar system in Mississippi

Federal ITC (25D)

Expired

The federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.

State Tax Credit

None

Mississippi does not offer a state tax credit for solar installations.

SREC Market

Not Available

Mississippi does not have a traditional SREC market.

Property Tax Exemption

No statewide property tax exemption for solar

Sales Tax Exemption

No statewide sales tax exemption for solar

Key Incentives: Limited state-level solar incentives.

Solar Math — With vs Without Federal ITC

Cost breakdown for a typical 7kW residential system in Mississippi

2026 Reality (No Federal ITC)

System Size
7 kW
Cost per Watt
$2.60/W
Gross Cost
$18,200
Federal ITC
$0
Net Cost
$18,200
Annual Savings
$1,243/yr
Payback Period
14.6 years

Hypothetical (With 30% ITC)

System Size
7 kW
Cost per Watt
$2.60/W
Gross Cost
$18,200
Federal ITC (30%)
-$5,460
Net Cost
$12,740
Annual Savings
$1,243/yr
Payback Period
10.2 years

Impact: Without the federal ITC, Mississippi homeowners face a 4.4-year longer payback period — paying $5,460 more out of pocket.

Net Metering Policy — Mississippi

How Mississippi compensates your excess solar production

NEM 2.0 Reduced Net Billing

Reduced export credits or net billing — you earn less than retail for excess solar. Moderate impact on payback.

Mississippi mandates net metering but credits are at the utility's avoided cost, below full retail rate.

Cost Per Watt Benchmark — Mississippi

Mississippi Average

$2.60/W

National Average

$3.05/W

Typical 7kW System

$18,200

$2.00/W $3.50/W $5.00/W

Mississippi's average installed cost is below the national average of $3.05/W

Breakeven Timeline

Without the federal ITC, a typical 7kW system in Mississippi breaks even in 14.6 years. With the former 30% ITC, payback would drop to 10.2 years.

Without Federal ITC

14.6

years to break even

With Former 30% ITC

10.2

years to break even

Production Details

Peak Sun Hours5.4 hrs/day
Production1518 kWh/kW/yr
Annual Production$10,624 kWh
Annual Savings$1,243

Ready to Go Solar in Mississippi?

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