Tennessee Solar Guide 2026
Everything Tennessee homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Quick answer
Tennessee solar economics depend mainly on 4.8 average peak sun hours, an estimated $2.75/W installed cost, 11.0¢/kWh electricity, and the state's current net-metering rules.
Reviewed 2026-07-26
- Best for
- Tennessee homeowners comparing solar costs, incentives, and payback assumptions.
- Inputs needed
- annual kWh usage, utility rate, installed $/W, net-metering policy
- Formula used
- Typical production = system kW × peak sun hours × 365.
- Source checked
- state incentive data, utility tariff checks, Wattcrunch price benchmarks
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
State-specific decision guide
What to verify before signing a Tennessee solar quote
In Tennessee, the financial result depends on more than sunshine or the headline installation price. Confirm the export rule, program eligibility date, and interconnection timeline for your exact utility before treating a payback estimate as a promise.
Export value
This page models limited — tva green power providers buyback. Ask which tariff and export credit apply to your account, not only which program name appears in the proposal.
Incentive eligibility
Check equipment, income, installer, application, and placed-in-service rules before subtracting an incentive from the quote. Programs can close or change terms.
Interconnection
Budget for the published 4–8 weeks and confirm who pays for a required meter, service upgrade, or engineering review.
Source trail: production assumptions use NREL PVWatts; incentive discovery should be checked against DSIRE; electricity-market context is available from the EIA. Confirm final tax treatment with the IRS and your utility.
Calculate your Tennessee solar economics
Our calculators are pre-filled with Tennessee data. Run any tool below.