Tennessee Solar Guide 2026
Everything Tennessee homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about Tennessee solar
TVA's dominance over Tennessee's power grid limits solar incentives. Low rates and minimal export credit make Tennessee one of the harder states for solar ROI — self-consumption with batteries or EV charging is the best strategy.
Peak sun hours
4.8
hrs/day avg
Avg electricity rate
11.0¢
per kWh
Median install cost
$2.75/W
before incentives
Typical payback
14 yrs
8 kW system, avg usage
Typical 8 kW system in Tennessee
Annual production
14,016 kWh
Year-1 savings
$1,542
System cost (est.)
$22,000
No federal tax credit — Section 25D expired December 31, 2025.
Tennessee Net Metering Policy
Limited — TVA Green Power Providers buyback
Most of Tennessee is served by TVA-owned utilities (LPCs). TVA's Green Power Providers program buys excess at a flat rate ($0.04–$0.05/kWh), well below retail. Self-consumption is the primary value driver for TN solar.
Tennessee Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓Sales tax exemption on solar equipment
- ✓Property tax exemption (varies by county)
Top Utilities in Tennessee
Interconnection timeline: 4–8 weeks
Calculate your Tennessee solar economics
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