The Mississippi Public Service Commission voted unanimously on Tuesday to lift a stay on programs offering incentives for solar power. The same commission voted to suspend the programs last April.

The PSC initially voted in 2024 to suspend three programs: “Solar for Schools,” which allows school districts to essentially build solar panels for free in exchange for tax credits, as well as incentives for battery storage and low-income participants in the state’s “distributed generation” rule. Mississippi’s “distributed generation” rule is similar to net metering in other places, but reimburses customers for less than what most states offer.

Net metering is a program where power companies — in this case Entergy Mississippi and Mississippi Power — reimburse customers who generate their own solar power, often with rooftop panels, and sell any extra power back to the grid.

The PSC suspended the programs in 2024 because, at the time, the federal government was also offering funds through its “Solar for All” initiative. The commission reasoned that the state didn’t need to add incentives, which the previous commission approved in 2022 on top of the new funding. After learning that the state government didn’t receive any “Solar for All” funding, the PSC decided on Tuesday to reverse course.

While the State of Mississippi didn’t receive any of the funding, Hope Enterprise Corp. did get $94 million last year through the program to bring solar power to low-income and disadvantaged homes in the state.

The previous PSC created the “Solar for Schools” program as a way to save school districts money on their power bills to help with other expenses. While no districts were able to make use of the program before the PSC suspended it last year, other districts have seen savings after installing solar panels. Any of the 95 school districts within the Entergy and Mississippi Power grids are eligible for the PSC incentives.

Solar advocates disagreed with the PSC’s assertion that federal “Solar for All” funding would have replaced the PSC programs, which went into effect in January 2023, arguing that the commission’s ruling would scare off potential new business. Those advocates applauded Tuesday’s reversal, saying the incentives will support professions within the solar supply chain such as electricians, roofers, manufacturers and installers.

“Yesterday’s actions by the MPSC sends a strong signal that Mississippi is open for business,” Monika Gerhart, executive director of the Gulf States Renewable Energy Industries Association, said via email. “For schools and homeowners that want to save money on their light bill, yesterday’s vote creates additional savings to install solar.” 

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