Mississippi Solar Incentives, Cost & Net Generation Policy (2026)

Cost of solar in Mississippi

Unlike some states with massive volumes of solar installations, Mississippi currently lacks enough verified, localized pricing data in public registries to establish a firm median residential cost per watt specifically for the state.

However, the typical household in Mississippi uses a relatively high amount of electricity—averaging 15,410 kWh per year (about 1284.2 kWh monthly). To fully offset this usage, you would likely need a larger-than-average solar array. We highly recommend getting multiple local quotes to understand current installation prices in your area, as costs will depend heavily on system size, roof complexity, and your chosen installer.

Net Generation and Export Rules

In Mississippi, regulated investor-owned utilities like Mississippi Power and Entergy Mississippi are governed by the state's Distributed Generation Rule. Instead of full-retail net metering, they use a "net billing" structure. When your panels generate power and your house uses it simultaneously, you offset electricity you otherwise would have bought at the full retail rate of about 14.88¢/kWh.

However, if your system produces more electricity than you need in real-time, the excess is sent to the grid. You are credited for this exported energy at the "Total Value of Distributed Generation," which combines the utility's wholesale avoided cost and a locked-in 2.5 cents/kWh adder (guaranteed for 25 years from interconnection). If you qualify for the Low-to-Moderate Income program, you receive an additional 2 cents/kWh.

Excess exported kWh (energy sent to the grid beyond the customer's simultaneous on-site use) are credited at the rule's defined "Total Value of Distributed Generation," which equals: (1) the utility's "Avoided Cost of Wholesale Power" -- its marginal cost to generate or buy that energy elsewhere, or for a utility that is a member of a regional transmission organization (RTO), the average real-time locational marginal price (LMP) for its load zone, adjusted for average line losses and reflecting daytime solar production; plus (2) a fixed "Distributed Generation Value" adder of 2.5 cents/kWh (subject to change only by a separate PSC order after notice and hearing); plus (3), for qualifying low-to-moderate-income customers (household income at or below 225% of the federal poverty level, or a similar Commission-approved test), an additional "Low-to-Moderate Income Benefits Adder" of 2 cents/kWh. The 2.5-cent and (where applicable) 2-cent adders are locked in for 25 years from the date the customer begins net-generation service. This export credit is below the residential retail rate -- it is not full-retail net metering. The rule required each utility to file its own revised net-generation tariff with the PSC within 60 days of the rule's effective date; GoSolarIndex has not independently obtained Mississippi Power's or Entergy Mississippi's currently filed avoided-cost figure, so treat any specific all-in cents/kWh export total as unverified until confirmed against that utility's current PSC-approved tariff.