Renewable Energy Technology Incentives in Mississippi
Mississippi lies a way behind most other states when it comes to renewable energy production with just 2.7% of coming from this source in 2014, most of that from biomass. A combination of coal, gas and nuclear currently provides most of its energy needs. The state has only a small capacity at the moment for solar power although it has recently agreed to net metering and to offer in the region of 100 MW of wind and solar purchase agreements.
Wind is a problem for the state as it will not provide enough power for viable energy production but there is much potential seen in solar PV despite the climatic conditions in the state and assessments are currently ongoing to see how viable this is. A recent surge in proposals for hydroelectric installations in the Southern part of the state could see an increase in the energy mix from this renewable source in the future.
That doesn’t mean the state has totally turned its back on green energy, it currently has Kemper, a carbon capture power plant that is seen as a world leader. Despite that the state still has some way to go if it is going to promote areas such as solar PV.
Solar PV Incentives in Mississippi
The state currently has a measly 1 MW of solar capacity installed and ranks 47th in the US. While a number of large companies such as Toyota and Roberts Electric have recently gone solar there are only 14 solar companies in the state who employ just under 400 people. This could be due hot and humid conditions which limit the amount of sunshine, leading to the perception that solar is a bad bet. The main incentive for installing solar is the Federal Tax Rebate that offers 30% off the cost and the state does now have net metering place. There is support from the TVA Mid-Sized Renewable Standard Offer Program where solar is eligible for a rebate though you have to be connected through them.
Solar PV Case Study in Mississippi
While there may not be the widespread incentives that many other states offer, the return on investment for solar PV in Mississippi is still not bad as a long term proposition. You should expect to pay around $20,000 for the installation and then be able to subtract the Federal Tax Rebate. The time for paying off the loan is around 17 years after which you can realistically expect to benefit by about $16,000 for the 25 years that your array should be running. It could also increase the sale value of your home by some $15,000.
Solar Thermal Incentives in Mississippi
Solar thermal in the state is supported by the Federal Tax Rebate and is exempt from income, franchise and sales and tax use for the first ten years. Heating water by solar is seen as a low cost, clean technology and can help reduce bills in this area by as much as 70%.
Small Hydro Incentives in Mississippi
Hydroelectric also benefits from the Federal Tax Rebate and has state tax exemptions that make it a cheaper option. The area has a large potential for small and larger scale hydroelectric over the coming years if legislation and incentives can be put in place to make it more attractive to communities and developers.
Geothermal Incentives in Mississippi
As in many other states, there is support for geothermal such as ground source heat pumps, generally provided through the utility companies. This includes incentives such as the Singing River Electric Power Association Comfort Advantage Home Program. Geothermal is popular for those properties where the building integrity allows low constant heat and there is enough land surrounding to install the pipe network a heat pump requires.
Biomass Incentives in Mississippi
Most of Mississippi’s renewable energy currently comes from biomass and it has the potential to expand this area of production. The take up of wood chip burners and biomass boilers for residential and commercial premises has not been fast and are there are no incentives beyond the Federal Tax Rebate though there are corporate tax exemptions in place.
Wind Power Incentives in Mississippi
With low wind levels, Mississippi isn’t best place for developing a large scale wind farm infrastructure though there may be potential for moving off shore. For small wind installations there are incentives through the Federal Tax Rebate but consideration needs to be given to other factors such as the total energy production when planning such projects.
Mississippi suffers somewhat from its climatic conditions that make both wind and solar less attractive methods of creating renewable energy than in other states. Current assessments on the viability of solar PV mean that it is still a small industry and much will have to be done to promote it if take up is to increase. Other methods of renewable energy production need therefore to be focused upon such as biomass and perhaps hydroelectric if the state is to wean itself off fossil fuels and nuclear and become a lot greener in the future.
You can find out about all the current renewable technology incentives for Mississippi on the DSIRE website.