What to know
- Cost: About $14,028 for a 6 kW system to $23,380 for a 10 kW system after tax credit.
- Savings: 6 year payback; about $25,586 saved over 20 years.
- Environmental benefits: Potential to reduce your carbon emissions significantly.
Going solar in Mississippi now averages about $3.57 per watt. That means you can expect to pay roughly $3,566 per kilowatt (kW) of installed capacity before incentives. For example, a 5 kW system typically costs around $16,700 before applying the 30% federal tax credit. Once you factor in that tax credit, the out-of-pocket cost for a 5 kW installation comes to about $11,690
However, a 5 kW system isn’t necessarily the best size for homeowners in Mississippi. According to our data, Mississippi residents currently pay an average of 13.35¢ per kWh, with a typical electric bill of around $155.30 per month for 1,163 kWh of consumption. Considering this energy usage, a 10 kW system is ideal to cover the energy needs of most.
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How long does it take to see a return on your investment in Mississippi?
The upfront cost is what you pay for a system (whether you pay cash or finance doesn’t factor in this equation). The payback period is the amount of time until you break even on your investment considering savings from energy bills. And the net 20-year savings is what you save over 20 years minus the upfront costs. All of these work together to show how much you could save with solar in the state.
| 5 kWh System | Mississippi Average | U.S. Average |
|---|---|---|
| Upfront Cost | $11,690 | $12,530 |
| Payback period | 6 Years | 7 Years |
| Net 20-year savings | $25,586 | $22,173 |
| *These are estimates. Getting personalized quotes from local installers is crucial for accurate pricing. | ||
Federal tax credit impact: The 30% federal Residential Clean Energy Credit significantly reduces your installation costs. For example, a $20,000 system would cost you $14,000 after the credit.
Is Mississippi good for home solar panels?
To gauge potential, we look at average roof size, system capacity, and electrical production.
- Roof size: 930 sq. ft.
- System capacity: Up to 16,524 kW DC
- Electricity production: About 1,498 kWh AC per year
On average, a solar power system in Mississippi can lower your electricity bill and pay for itself over time.
Below you can see power generation, cost, and savings of different system sizes.
| 6 kW System | 7 kW System | 8 kW System | 9 kW System | 10 kW System | |
|---|---|---|---|---|---|
| Roof Space | 429 ft² | 501 ft² | 572 ft² | 644 ft² | 715 ft² |
| Annual power value | $1,201 | $1,401 | $1,601 | $1,801 | $1,864 |
| Average cost | $14,028 | $16,366 | $18,704 | $21,042 | $23,380 |
| Average yearly production | 8,991 kWh | 10,489 kWh | 11,988 kWh | 13,486 kWh | 14,985 kWh |
| Average monthly savings* | $100.05 | $116.73 | $133.40 | $150.08 | $155.30 |
| Full payback period | 8 years | 9 years | 10 years | 11 years | 13 years |
| CO₂ reduction per year | 6.15 tons | 7.17 tons | 8.19 tons | 9.22 tons | 9.54 tons |
| *Savings assume a $155.30 monthly electricity bill | |||||
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How to pay for solar panels in Mississippi
Purchasing solar panels is no small task. Here are a few ways you can pay for solar:
- Cash purchase: This is the best choice if you can afford it. Paying in cash gives you the best long-term savings but requires a larger upfront investment, of course.
- Solar loans: You can spread the cost over time with a loan, but be mindful of interest rates and loan terms.
- Solar leases and PPAs: Power purchase agreements (PPA) and leases have lower upfront costs. However, you don't own the system, which means you save the least over time. There can also be complications if you want to sell your home.
What affects the cost of solar panels in Mississippi?
Several factors impact the final price of your solar installation:
- System size: Larger systems cost more upfront but often yield greater long-term savings.
- Panel type and efficiency: Monocrystalline panels are generally more efficient and expensive than polycrystalline or thin-film options.
- Installation complexity: Roof type, shading, and site-specific challenges can increase installation costs. Permitting and inspection fees also factor in.
- Additional considerations: Battery storage adds to the initial investment but provides backup power and greater energy independence. Labor and installation quality are also essential cost considerations.
How to save on Mississippi solar panel costs
Getting the most bang for your buck is essential when investing in solar. Here are some strategies to save money:
- Maximize the federal tax credit: Understand the eligibility requirements and claim the full 30% credit.
- Shop around for quotes: Get quotes from multiple installers to compare pricing and services. Don't just focus on the lowest price; consider reputation, experience, and warranty.
- Consider system size: Be careful of going overboard. A properly sized system will meet your energy needs without unnecessary costs. Analyze your energy usage to determine the optimal size.
- Explore financing options: Compare loan interest rates and terms carefully. If considering a lease or PPA, understand the long-term implications and potential trade-offs. Cash purchases often offer the best long-term savings.
- Negotiate with installers: Don't be afraid to negotiate on price. Inquire about any discounts or promotions they may offer.
- Optimize your home's energy efficiency: Before going solar, improve your home's energy efficiency. This will reduce your overall energy consumption and potentially allow you to install a smaller, less expensive solar system. Simple steps like sealing air leaks and upgrading appliances can make a difference.
- DIY (if possible and permitted): While professional installation is generally recommended, some homeowners may be able to handle certain tasks themselves (like site preparation). Check your local regulations and be honest about your abilities.
- Ask about rebates and incentives: Many states, cities, and utility companies offer rebates, net metering, and other incentives. Check with your local utility and city/county for any available programs.
- Time your installation: Sometimes, installers offer discounts during slower periods. Inquiring about seasonal promotions might yield savings.
Mississippi-specific solar considerations
- Weather Impacts: Mississippi enjoys a warm climate and abundant sunshine, making it a solid choice for solar energy. However, high humidity and the risk of severe storms, including the occasional tropical system, mean that durability and weather resilience should be priorities in your system design.
- Regulatory and Legal Considerations: Mississippi's permitting process is generally user-friendly. As always, check with your local municipality and any HOA rules to confirm that your installation complies with local building codes and aesthetic guidelines.
Solar panel prices in other states vs Mississippi
Solar panel prices in Mississippi's biggest cities
Get a custom solar quote in Mississippi
Going solar in Mississippi can be a financially and environmentally sound decision. By understanding how much it costs and how much you can save, you can make an informed investment and enjoy using clean energy for years to come. Get multiple quotes from reputable installers, compare your options, and take control of your energy.
Go Solar for less than your cell phone bill.