Mississippi State Solar Power Rebates, Tax Credits, and Incentives

biloxi solar mississippi Mississippi State Solar Power Rebates, Tax Credits, and Incentives
Remnants of a pier near Biloxi

Solar Legislator Score:  Mississippi State Solar Power Rebates, Tax Credits, and Incentives

Between the Mississippi river delta and the gulf coast, the state of Mississippi hosts some very unique places, not to mention being the birthplace of the Delta blues and a center of the civil rights movement. Even with all of its history and natural beauty, Mississippi has been slow to get on the solar energy train. Here’s what the legislature has done so far.

STATE LEGISLATION

Well, in the last couple of years, the state legislature has not even taken up the issue of solar energy. In the past two years, Governor Barbour has focused all his attention on cleaning up the mess left by Hurricane Katrina, but solar power has not figured into his plans.

NET-METERING

As of yet, Mississippi does not have a net metering policy, so for now, it’s all up to the utilities themselves.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

The Energy Investment Loan Program started in 1989 does offer companies the possibility of low-interest loans for solar energy systems and other renewable energy projects. Also the TVA’s Green Power Switch Generation Partners Program will pay $500 for the installation of a residential solar system, and buy the power generated at $0.15/kWh. However, the $500 incentive only lasts until the entire program reaches a capacity of 150kW.

Check out these other rebates and incentives for renewable energy in Mississippi:

* Mississippi Biomass Council

Leasing/Lease Purchase

* Energy Efficiency Lease Program

Production Incentive

* TVA – Green Power Switch Generation Partners Program

State Loan Program

* Energy Investment Loan Program

Utility Loan Program

* Mississippi Power – Hassle-Free Home Improvement Loan Program

* Tallahatchie Valley Electric Power Association – Heat Pump Loan Program

* Tupelo Water and Light – Residential Heat Pump Loan Program

Utility Rebate Program

* Coast Electric Power Association – Comfort Advantage New Home Program

* Coast Electric Power Association – Commercial Energy Efficiency Rebate Program

* Mississippi Power – Customer Energy Efficiency Rebate Program

* Pearl River Valley Electric Power Association – Comfort Advantage Incentives

* Southern Pine Electric Power Association – Comfort Advantage Home Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

A typical 3kW solar electricity system installed in Jackson, Mississippi would cost around $54,000. The federal tax credit would lower the cost by $2,000 though. With a state solar rating of Good, the system would pay for itself in about 25 years. The big savings would show up in utility bills going down by almost $100/month; not to mention the fact that you’d be keeping over 160 tons of greenhouse gasses out of the atmosphere.

Building Type:

Residential

State & County:

MS – Jackson

Utility:

Entergy Mississippi Inc

Utility Type:

Investor-Owned Utility

Assumed Average Electric Rate:Please check against your bill

$0.1012/kWh

Assumed Average Monthly Electricity Usage: Please check against your bill

1,300 kWh/Month

Your Average Monthly Electricity Bill: (Assumed rate x average monthly usage)

$132 / Month

Tiered Rates Apply:

No

Time-of-Use Metering Offered:

No

Net-Metering Available:

No

ESTIMATED SYSTEM SIZE

The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 4.80 kW and 7.20 kW of peak power. This estimate assumes the mid-point of this range.

Solar Rating:

Good (4.947 kWh/sq-m/day)

Solar System Capacity Required:

6.00 kW of peak power (DC watts)

Roof Area Needed:

600 sq-ft

ESTIMATED SYSTEM COST

This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.00 kW peak power system will cost between $43,200 and $64,800. This estimate assumes the mid-point of this cost range.

Assumed Installation cost:

(before rebates, incentives or tax credits).

$54,000 assuming $9 /watt

Expected Entergy Mississippi Inc Utility Rebate:

($0)

Expected MS State Rebate:

State incentive does not apply to this utility

($0)

MS State Tax Credit/Deduction

($0)

Federal Tax Credit:

(Installation type: Residential )

($2,000)

Income Tax on Tax Credit:

$0

YOUR ESTIMATED NET COST:

$52,000

Monthly Payment (6.5% apr, 30 years):

$329

SAVINGS & BENEFITS

Increase in Property Value:

$13,760

Exempt from Property Tax:

No

Accelerated (5 yr) Depreciation:

(Installation type: Residential )

No

First-year Utility Savings:

Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher!

$688

Average Monthly Utility Savings:

(over 25-year expected life of system)

$96

Average Annual Utility Savings:

(over 25-year expected life of system)

$1,155

25-year Utility Savings:

$28,870

Return on Investment (ROI):

(with Solar System ave. cost set as asset value)

140%

Return on Investment (ROI):

(with Property appreciation set as asset value)

531%

Years to Break even:

(Includes property value appreciation)

20 years

Years to Break even:

(Assuming no property value appreciation)

27 years

Greenhouse Gas (CO2) Saved: over 25-year system life

160.0 tons (320,000 auto miles)

CONSENSUS

The Mississippi legislature is really singing the blues when it comes to solar energy. The state’s leaders have hardly even mentioned the words in their sessions since 2005. With all the rebuilding in the aftermath of hurricane Katrina, the state could take the opportunity to protect the environment by promoting clean energy too. It’s about time the legislature took a stand in support of solar power.


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Read the 29 brilliant comments below or add yours!

Helen McDonald Identicon Icon Helen McDonald
Comment on December 23rd, 2007.

plase email additonal information about a loan for solor power instulation.

Eric Identicon Icon Eric
Comment on December 30th, 2007.

I wished gov barbour would sober up and catch up to the rest of the civilized world.

Pat Heidingsfelder Identicon Icon Pat Heidingsfelder
Comment on January 4th, 2008.

Being from Long Beach, MS and living the complete destruction from Katrina, I really think the state dropped the ball when it comes to solar and all other alternative energies. Solar and even wind energies could have been implemented very easily!

Truck Identicon Icon Truck
Comment on January 25th, 2008.

Could not agree more here. But most of the ppl in the senate and house are from oil/gas pockets anyway. Entergy Inc. has no incentive for anything ever. Because they are just like the greedy saudi’s. We are one of the poorest states but we have rates like california.

Nikki T. Identicon Icon Nikki T.
Comment on May 14th, 2008.

I agree with Pat H. Why wouldn’t Mississippi incorporate solar with all the building going on (residential and commercial)????

Comment on May 19th, 2008.

Let us get the Solar going in Mississippi and get out of the as always last place for Solar energy: Please write a message/Letter to Gov Barbour.

Comment on May 19th, 2008.

RE: Please write:
Government office:Barbour

http://www.governorbarbour.com/

FAX Or write.

P.O. Box 139 | Jackson, MS 39205 | Phone: 601.359.3150 | Fax: 601.359.3741

Buddy Identicon Icon Buddy
Comment on June 1st, 2008.

We are facing a energy crisis and our state is not offering opportunitys for us to utilize our natural energy (sun shine). Whats up with that??? Why not have net metering and catch up with the other 40 states who encourage energy independence?

Burney Identicon Icon Burney
Comment on June 26th, 2008.

The price of oil is going up everyday and so are electric bills. Even Lousiana has tax credits for solar. How can we get this done.

Travis Whitaker Identicon Icon Travis Whitaker
Comment on July 6th, 2008.

Who out there knows how to get through to Governor Barber to tell him Mississippi’s middle class need some big incentives implemented. We need the same incentives as Florida and California.

KK Identicon Icon KK
Comment on August 1st, 2008.

WAKE UP MISSISSIPPI — Why can’t Mississippi do like Idaho when it comes to Alternative Energy Rebates.

http://www.thenaturalabode.com/renewable_energy/Idaho_Energy_Incentives.htm

I’m thinking of moving to Idaho just for the Rebates.

Al Identicon Icon Al
Comment on August 8th, 2008.

What about these new solar shingles? Cost, effectiveness. They look great because they blend in with your other shingles.

Pat Heidingsfelder Identicon Icon Pat Heidingsfelder
Comment on September 17th, 2008.

Back in Feb, I contacted MS Power on the subject of net metering. Sounds to me like they will, but at a very reduced rate…

Dear Pat,

Mississippi Power would like to thank you for submitting your question. We have put consideration into the issue, and have answered to best of our ability below. We hope this helps.
Southern Company is committed to increase the amount of electricity from renewable resources such as Biomass and Green Energy programs. We have been, and continue to work, in conjunction with federal, state and local agencies on extensive environmental research and programs aimed to reduce greenhouse gases, promote energy efficiency, and renewable generation options.

However, per MPC tariff, in order for a customer to sell power to MPC, the customer must do the following:
1) Be a “qualifying facility” as defined by the 1978 Public Utility Regulatory Policies Act (PURPA), Sections 201 and 210

2) Sign a 5-year contract under Rate Schedule CSPP, provided that the customer’s generating capacity is no more than 100 kW.

3) Interconnect with MPC in order to sell power through a separately metered service, i.e., the existing meter measures purchases by the customer under the standard electric service rate; the second meter measures purchases by the Company under the CSPP Rate Schedule.

We do have a rate schedule for this situation, called CSPP-2 (Cogeneration and Small Power Production Purchases). Under this rate schedule the customer would pay MPC a fixed monthly fee to cover metering and billing associated costs. In addition, MPC would pay the customer a seasonal rate per kilowatt-hour for energy metered into the Company’s system.

Mississippi Power hopes to have helped you develop a better understanding on this the issue. If you have further questions or inquiries, please contact us at http://www.mspower.com, or you can call our customer service line that is open 24 hours a day, 7 days a week at: 1-800-532-1502. We are pleased to do business with you, and look forward to helping with any further questions or concerns.

Sincerely,

Lois

Online Customer Care Representative

diana Identicon Icon diana
Comment on September 28th, 2008.

Sounds like Mississippi Power should “develop a better understanding.”

Tim Identicon Icon Tim
Comment on October 8th, 2008.

Mississippi Power’s answer sounds like an answer from a monopoly. Just the thing to encourage the status quo.

shelley Identicon Icon shelley
Comment on October 16th, 2008.

We are Alternate Energy Solutions LLC and we feel just like all the rest of you. That’s why we developed this company! To help the citizens of MS reduce their electric bill with the use of solar, solar thermal, and wind. At least now the federal government has lifted the cap on the 30% incentive. It used to be up to $2,000. Now it is 30%, no cap. But it does not go into effect until Jan 2009. But hey it’s a start. Now we just need to let our leaders know that we demand net metering, at least the same rate we pay them per kwh then MS could get on board with incentives that other states like AZ and CA have to actually encourage people to purchase renewable energy instead of just trying to sound politically correct. And they beautiful thing about it is that other states have already done the research and policies on it. MS does not have to re invent the wheel. Just look at other states policies and taylor one for MS. I’m tired of MS lagging behind on everything, embarrased even. Obviously you all want to be green, you just want the same incentives that other states have. So come on MS. Listen to the public and enact some renewable energy laws that will benefit this beautiful state and her people. http://www.alternateenergyms.com

T-Bone Identicon Icon T-Bone
Comment on November 17th, 2008.

We all
know the cost of alternative energy is high but what will it take for us to become part of the solution hmmmmmm I know lets stop paying taxes until we get something for our money like honest officials who live like we live (just above broke)

George Identicon Icon George
Comment on November 25th, 2008.

I just moved last year from Germany to Mississippi, bought a home and enjoying this huge amount of sunshine here, decided to take some money out of my savings and install a solar roof doing something for our energy independence and saving our environment. Now I´m quite shocked about the missing solar tax incentives here. Even Germany has much higher tax rebates for solar installations although having much less sunshine than MS. What a waste of ressources…we could avoid 160 tons and more of greenhose gases a year per home! This is an amount of waste filling a 16 wagon train per home per year!!
Politicians of Mississippi…wake up and take your responsibility for the future generation, our energy independence and our healthy environment.
Support all these people writing here and all who are willing to invest and to do something for our progress in energy independence and use the huge potential of this wonderful sunny state. Mississippi could advance from the last rows in the US economy to the most developed states if we would use this terrific geographical advantage for use and development of solar utilities here…as I see, there are a lot of people ready to go for it…

Brad Identicon Icon Brad
Comment on December 9th, 2008.

The truth is the power companies and the oil business are just like we hear about the car companies, they are “JUST TOO BIG TO FAIL” The central banks and the IMF control all this, and they do not like competition period. Not solar, wind, free energy of any kind is just not acceptable. They might allow a few just to keep us from raising questions but if wind or solar is allowed someone on top will control our strings. We are puppets. These guys even decide our leaders, elections are like football games, just something for our entertainment. They control the media, elections, energy, your time, etc. Heck there is a car now that runs on air but it will never be sold here. Just search the net for aircar to see for yourself.

John Identicon Icon John
Comment on January 10th, 2009.

Hey! There are now FIVE bills before the state legislature regarding renewable energy.
http://index.ls.state.ms.us/2009Session.html
Go to this site and search the word “solar”.

shelley Identicon Icon shelley
Comment on February 26th, 2009.

Mississippi!! You can say that with a little more pride now. Mississippi passed H.B.194. The Great State of Mississippi will now give a tax credit (that can be carried foward for up to 5 years) of 50% of the first $25,000.00 for the purchase of wind or solar. You can find this on line by typing in HB 194 on MS legislature web page. This is a huge savings for installing solar on our homes espically when you consider the 30% tax credit from the federal government. Now we, Alternate Energy Solutions, can begin to install solar without any reservations in our minds that our customers now have the proper incentives in place. Thank you Mississippi Legislature.

shelley Identicon Icon shelley
Comment on March 19th, 2009.

Retract previous statement. The HB 194 did pass the ways and means committee but died in the finance committee, thanks to the chair Dean Kirby. If any of you think that bill should have passed, please let Mr. Kirby know, dkirby@senate.ms.gov
The only way to get these types of incentives passed is to let them know that you want it.

Tabatha Identicon Icon Tabatha
Comment on March 26th, 2009.

I’ve just sent an email not only to Dean Kirby, but to each and every member of the MS Senate Finance committee. I was very polite but I let them know in no uncertain terms that I am displeased with the death of this bill. MS is so behind the times its not even joke worthy anymore. We need to be on the cutting edge. The destruction left behind after Katrina was the perfect time to rebuild GREEN. How about that Kansas town that went as green as possible after being destroyed by a tornado, Greensburg, I think it was? Long Beach or Biloxi could have used that imprint, buuuuut, MS doesn’t offer the incentives.

Melanie Identicon Icon Melanie
Comment on July 1st, 2009.

25 years to pay for itself doesn’t sound like a viable alternative just yet! Who can afford to spend another 54K on their home and have that investment increase the value of the home only 13k? This is not a viable alternative solution at this price!

Kelly Identicon Icon Kelly
Comment on July 2nd, 2009.

I have just been visited by relatives from Biloxi. Since I have started a solar company here in Florida I thought I would see what the incentives were in MS. It doesn’t look too good. And from what the relatives were saying, your electric rates will effectively be doubling within the next 3 years.But on the bright side, prices for solar panels are down right now. The price for a totally installed 5kw system should be around $9 per watt or $45,000. The fed tax credit will bring it down $13,500 to $31,500. When you calculate the payback keep in mind the increase in utility rates. What Mississippians should lobby for is a Renewable energy dividend program like what was passed in Gainesville FL. It is similar to the programs in Germany which catapulted it into first place for solar energy production. And Germany has the solar insolation of Alaska! Go to http://www.farenergy.org for more info and start a grassroots chapter in MS. Good Luck. Things can get brighter if we keep looking up.

Selina Identicon Icon Selina
Comment on August 31st, 2009.

I’m with Melanie, 25 years to pay for itself doesn’t sound like a viable alternative to me either. Not only will you be paying for the solar kit, but you will still have a power bill. I’m looking for something around $15,000-$20,000 for a 2400 sq ft. house that uses anywhere from 2000-2800 kwh a month. Also, if there are no rebates, incentives, or tax credits for at least the first 5 years you have your system, it’s not saving anyone anything, just adding a second mortgage on your homes to have pennies for 30 years. Heck, most people can’t afford that and at this time people are trying to get OUT of debt and not in it. People are worried about this government and what they are going to put on us next to pay our of our checks and taking from our children’s mouths to start going in debt for $54,000+ on a solar panel that can be blown away by the next hurricane. Yes, I know I’m a bit negative, but until Mississippi makes it cheap enough to have solar homes, my family will not be able to do it, although I would love to.

Comment on August 31st, 2009.

You’re right, Selina. Mississippi has a great deal of sunlight, yet the legislators refuse to keep up with the times and create rebate and incentive programs. The best thing you could do is create some kind of press to shame the governor and the legislator into getting up to speed with the rest of the Country and to start creating some kind of subsidy to encourage solar. Thanks for commenting.

Stephen Cheek Identicon Icon Stephen Cheek
Comment on September 14th, 2009.

I think the Mississippi congress should get behind solar energy for homeowners. It’s time to take a lead in something.

Comment on September 14th, 2009.

We’re right behind you, Stephen. BTW, just in case you’re near Oxford, Hotty-toddy, gosh almighty, who the hell are, we etc. :) . Ringing cowbell if you happen to be aligned with that other team. ;)

JODY Identicon Icon JODY
Comment on December 1st, 2009.

UNTIL THE POWER COMPANIES ARE REQUIRED TO PRODUCE GREEN POWER, WE IN MISSISSIPPI ARE NOT GOING GET ANY HELP ON THE SOLAR ISSUE. I SPENT TWO WEEKS IN SAN JOSE CAL IN DEC 2008 GOING TO A SOLAR SCHOOL TO LEARN HOW IT WORKS AND HOW TO INSTALL SOLAR. WHAT I LEARNED WAS CALIFORNIA WANTS SOLAR POWER AND MISSISSIPPI DOES NOT. UNTIL WE START PUSHING OUR POLITICIANS TO ACT WE WILL NEVER GET THE HELP WE NEED.

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