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Mississippi - Energy tax credit, solar rebates and incentives

Mississippi Renewable and Solar Energy Incentives

Generation Partners Program – TVA (Residential/Commercial)

The Tennessee Valley Authority along with affiliated utility companies grant a power generation incentive for homeowners and commercial businesses that utilize renewable energy systems.

  • Qualifying systems: biomass, small hydropower, solar and wind.
  • Incentive amount is dependent upon the type of system.  For solar systems, customers will receive a premium rate of $0.12/kWh.  All other renewable energies are offered $0.03/kWh plus retail rates for small hydropower, biomass and wind energy systems.
  • New subscribers will receive a $1,000 bonus for joining that can be put toward installation costs of a given system.
  • There is currently no maximum incentive for this program.
  • Reimbursement is represented in the form of credit on the participant’s monthly electric bill.  For net excess generation produced, energy distribution companies will issue payment based on their pre-established rates.
  • Systems must be greater than 500 watts and no larger than 999 kilowatts to participate.

Energy Investment Loan Program (Commercial)

The state of Mississippi offers loans at low-interest rates for commercial businesses that seek renewable energy systems and/or energy-efficient technologies.

  • Qualifying systems: solar water heat, solar thermal electric/process heat, solar space heat, solar panel (PV), biomass, geothermal, hydropower, CHP/cogeneration, landfill gas and municipal solid waste.
  • Loan amounts range from $15,000 to $300,000 and are based upon type and size of the system.
  • The set interest rate is currently 3% (less than the prime rate) and must be repaid over a 7-year period.

Utility-Sponsored Rebate and Loan Programs (Residential/Commercial)

There are various rebate and loan programs that are offered through utility companies in Mississippi for both residential and commercial customers.

  • Program specifics and requirements vary on a program-to-program basis.
  • Loans typically maintain zero to low-interests to aid in the purchase and installation costs of renewable energy and energy efficient technologies.
  • Rebate amounts are generally established on a per-watt basis and are dependent upon both size and type of system.

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers are granted an energy tax credit of 30% of the total expenses, which include installation of residential or commercial solar panel (PV) systems, solar thermal systems, fuel cells and labor expenses.  Residential wind energy installations and geothermal pumps are also subject to a tax exemption.  

  • Solar electric systems and solar thermal heaters have no maximum incentive.
  • If there is excess federal tax credit, it may be carried over to the subsequent taxable.  
  • This may continue on through consecutive years until 2016, under which unused credit may or may not be expunged.

Federal Energy Conservation Subsidy Exclusion (Residential)

  • Public utilities provide residential purchasers with an exemption of 100% of energy conservation subsidies.  
  • The overall worth of an installation or renewable utility regardless of the energy conservation capacity, will be excluded from the buyer’s gross income.  
  • Customers who participate in a utility company’s energy conservation program may be given a reduced rate of electricity utilized or a nonrefundable credit of the price of electricity on the customer’s monthly electric bill.

Energy-Efficient Mortgages (Residential)

  • With this federal loan program, homeowners may utilize energy-efficient mortgages (EEM) to either supplement or completely fund renewable energy systems.

Example: 4KW System – Residential Installation Cost

Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50

- Estimated System Cost: $26,000
- Federal/State Tax Credit: $7,800
- State/Utility Rebate: $0
- Net Cost: $18,200
- Cumulative Lifetime Savings (25 Years): $13,907
- Investment Return: 1.3%

Savings of 30% on the total cost of your solar system through incentives (If part of TVA feed-in tariff program payback is markedly better)

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