AN ACT TO PROVIDE FOR DECOMMISSIONING OF SOLAR PANELS; TO DEFINE TERMS; TO PROVIDE REQUIREMENTS FOR SOLAR POWER FACILITY AGREEMENTS CONCERNING REMOVAL OR RESTORATION; TO REQUIRE AGREEMENTS TO REQUIRE THE GRANTEE TO OBTAIN AND DELIVER TO THE LANDOWNER FINANCIAL ASSURANCE IN CERTAIN AMOUNTS TO SECURE PERFORMANCE OF REMOVAL AND RESTORATION OBLIGATIONS; TO PROVIDE ACCEPTABLE FORMS OF ASSURANCE; TO AUTHORIZE LOCAL GOVERNMENTS TO REGULATE SOLAR POWER FACILITIES UNDER CERTAIN CONDITIONS; TO PROVIDE THAT CERTAIN AGREEMENTS THAT PURPORT TO WAIVE A RIGHT OR EXEMPT A GRANTEE FROM LIABILITY OR DUTY IS VOID; TO PROVIDE THAT NOTHING IN THIS ACT SHALL BE CONSTRUED TO LIMIT THE DISCRETION OF COUNTIES OR MUNICIPALITIES PURSUANT TO CERTAIN AUTHORITIES; TO PROVIDE FOR REMEDIES; TO PROVIDE FOR APPLICABILITY OF THIS ACT; AND FOR RELATED PURPOSES.
SB2527 creates a new set of rules for solar power facility agreements in Mississippi, focused on decommissioning at the end of a project’s life. It requires leases or easements for qualifying solar facilities to include provisions for the safe removal of solar equipment, restoration of the land to a condition suitable for its prior or agreed use, and a decommissioning plan describing how those obligations will be carried out. The bill defines key terms such as “solar power facility,” “landowner,” “grantee,” and “decommissioning cost,” and generally applies to solar projects that generate electricity primarily for off-premises use and are at least 5 megawatts, unless the agreement expressly says otherwise.
The bill also requires the project developer or other grantee to provide financial assurance to the landowner to secure removal and restoration obligations. The required assurance ramps up over time: at least 5% of estimated decommissioning cost when the facility begins commercial operation, 50% by the tenth anniversary, and the full decommissioning cost by the fifteenth anniversary. It lists acceptable forms of security, including surety bonds, letters of credit, cash, certificates of deposit, and similar instruments. The bill further makes any contractual waiver of these statutory rights or duties void, except in agreements between affiliated entities, and allows harmed parties to seek relief under Mississippi Rule of Civil Procedure 57.
SB2527 affects Mississippi property, energy, and local land-use law by establishing baseline statewide standards for solar decommissioning agreements. It preserves local zoning authority under Title 17 and county/municipal discretion under Title 27, but limits local governments from imposing removal or restoration obligations or financial assurance requirements beyond what the act requires as proof of compliance. The bill applies only to new solar power facility agreements entered into on or after July 1, 2026, though older agreements may be amended to adopt the new rules. It also requires environmental samples taken during decommissioning to be tested and the results provided to the Public Service Commission.
The overall sentiment reflected in the voting history is strongly supportive. The Senate passed the bill unanimously, the House passed it with only four nays, and the Senate later concurred in the House amendments unanimously. That pattern suggests broad bipartisan agreement that solar projects should have clear end-of-life cleanup and financial security requirements.
The main points of contention appear to be the balance between statewide standards, private contract freedom, and local control. The bill restricts parties from waiving the removal and restoration duties in advance, which favors landowners and public accountability over developer flexibility. At the same time, it preserves local zoning authority but prevents local governments from layering on additional decommissioning or financial assurance requirements, which may have been intended to create uniformity but could limit local discretion. The inclusion of environmental testing and reporting to the Public Service Commission also adds an oversight element that may be important to regulators and landowners concerned about site cleanup.
SB2527 adds a new statutory framework governing solar power facility agreements in Mississippi, requiring decommissioning plans, land restoration, and escalating financial assurance for qualifying solar projects. It creates enforceable duties for grantees, limits waiver of those duties, and provides remedies for violations, while preserving certain local zoning and county/municipal powers. The act applies prospectively to agreements entered on or after July 1, 2026, with optional application to amended preexisting agreements.
The bill appears to have broad support and little recorded opposition. It passed the Senate 52-0, the House 115-4, and the Senate later concurred in House amendments 51-0. The vote pattern indicates general agreement on the need for solar decommissioning standards and financial protections for landowners and communities.
The likely areas of debate are the scope of local authority, the extent of mandatory financial assurance, and the bill’s limits on private contracting. The measure allows local zoning regulation but bars local governments from imposing additional decommissioning or security requirements, which may concern local officials who want more control. Developers may object to the nonwaivable obligations and the requirement to provide escalating financial security, while landowners and regulators are likely to favor those protections. The bill’s environmental testing and reporting requirement may also raise questions about administrative burden, though no committee transcript is available showing direct disagreement.