Mississippi Regulators Approve Incentives for Residential

Mississippi Regulators Approve Incentives for Residential

Mississippi may not be known for having fully embraced solar power, but state regulators are doing their part.

On Oct. 4, 2022, the state’s Public Service Commission voted in favor of a new rule that will offer a rebate for rooftop solar installations. The rule also seeks to help low-income households, and it incentivizes solar installations at public school facilities.

The amendments to the Mississippi Renewable Energy Net Metering Rule and the Mississippi Distributed Generator Interconnection Rule establish several benefits to help increase the adoption of rooftop solar in the state.

Owners of rooftop solar, or other on-site renewable generation, who participate in the program are eligible to receive a benefit equal to 2.5 cents per kilowatt-hour (kWh) for the power they send back to the grid.

This benefit will be available for 25 years from the time the customer first begins participating in the program.

A “low- to moderate-income benefits adder” shall provide an additional 2 cents/kWh to qualifying customers whose household income is at or below 225% of the federal poverty level.

The rule also requires utilities to offer a one-time $3,000 incentive to participating low- to moderate-income customers who have installed a solar system or some other type of on-site generation.

It also requires utilities to offer a one-time $2,000 incentive to customers who install a battery system. The battery incentive is not available to customers who receive a low- to moderate-income incentive.

The rule further establishes a K-12 “Solar for Schools” program that includes guidelines for power purchase agreements between the school districts and electric utilities, to incentivize the development of rooftop solar at the state’s public school districts.

The rule adoption follows a months-long process of deliberation. It was first adopted in July 2022, but utilities requested a rehearing, and some adjustments were made before the final rule was adopted.

According to the Solar Energy Industry Association, Mississippi ranks 37th among all states for its adoption of solar power, which is up from 49th in 2021.