Mississippi solar rebates and incentives: 2025 guide

Mississippi’s sunny skies and mild winters make it a natural fit for going solar and powering your home with clean, sustainable energy. While there aren’t many state-level solar incentives for homeowners in the Magnolia State, federal tax credits can still take a big bite out of the upfront costs. However, the federal solar tax credit will no longer be available for systems installed after December 31, 2025, so you have to go solar this year to claim it.

As a Mississippi homeowner, the ITC is the most impactful way to bring down your solar costs.

Residential Clean Energy Credit

The Residential Clean Energy Credit, formerly known as the federal investment tax credit (ITC), can reduce your solar panel system's cost by 30%. Your entire system qualifies for this incentive, including equipment, labor, permitting, and sales tax.

However, this credit will no longer be available after December 31, 2025. On July 4, 2025, President Trump signed legislation that eliminates the residential solar tax credit entirely starting January 1, 2026—nearly a decade ahead of its original expiration date. Solar projects typically take several months from consultation to installation, so homeowners considering solar should act quickly to lock in these savings.

When you file your federal income taxes, you can claim this incentive as a credit towards your federal tax bill. Just keep in mind that to qualify for the ITC, you need to purchase your system either with cash or a solar loan–if you lease your system, you won't be eligible. 

You also need a high enough tax bill to use the credit, though you can roll over any remaining credit year-to-year, according to a tax expert EnergySage spoke with. The IRS doesn't specify an end date for credit rollovers, meaning you can theoretically roll over unused credits indefinitely based on current law. However, Tax Form 5695 may no longer exist after 2025, so you likely will no longer be able to use that form. Please speak with a tax professional for specific guidance.

Remember: Your system must be installed by December 31, 2025 to qualify for this credit.

Utility companies in Mississippi—including Entergy, Mississippi Power, and other investor-owned utilities—do offer solar buyback programs, but not net metering specifically.

While the sun is shining, your solar panels might produce more electricity than your home needs at any given moment. Under the net billing solar buyback programs in Mississippi, you can sell that excess power back to the grid for credits on your electricity bill. 

The catch is that the utility companies only offer partial credit for every kWh—you’re selling the electricity to them at a significant discount, compared to what they’ll charge you to buy that electricity back later. 

The exact rates depend on the utility company, but they’re generally the avoided cost rate plus $0.020 per kWh, which usually comes out to half the retail rate or less. Credits don’t expire though, so you can roll them over indefinitely.

If you want to squeeze the most possible value out of your solar panels under net billing, consider installing a solar battery.

Mississippi’s Battery Storage Incentive Program offers a $2,000 rebate for those installing a certified battery storage system, but the incentive is currently suspended. We’re not sure if and when that rebate will become available, but all batteries above 3 kWh in size are eligible for the 30% federal tax credit. 

Solar batteries paired with solar panels often make financial sense in Mississippi. They boost energy independence and provide backup power during an outage, helping you keep more of your own (free) solar power rather than letting the utility company take it at a steep discount.

If you're looking for solar installers in Mississippi, see the complete list.