Net Metering Laws
Mississippi’s net metering laws apply to residents in the Tennessee Valley Authority (TVA) service area. Net metering is a system in which solar panels or other renewable energy generators are connected to the public utility. Net metering allows customers to offset the cost of the power they pull from the utility with credits they have earned on their own production. If your system produces more energy than you need, the excess is sold to the grid, which you benefit from as a credit on your power bill.
Performance-Based Incentives (PBI)
Mississippi is one of many states that offer PBIs, which are incentives based on the actual power your system generates. Mississippi calls them Solar Power Performance Payments, and they are for customers of the TVA. Here’s how it works: You get paid based on kilowatt-hours (kWh) or BTUs generated by your renewal-energy system, as read by the meter. The electricity produced is credited as Solar Renewable Energy Credits (SRECs), the value of which fluctuates by the rule of supply and demand.
Federal Tax Credit
On top of these incentives, of course everyone in Mississippi also qualifies for a great tax credit from the Federal government. The solar Investment Tax Credit (ITC) is worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes to those who buy their system, by cash or loan. If you lease a system, incentives go to the third-party owner. A very good reason to buy or lease!