Tennessee Solar Rebates, Tax Credits & Incentives (2026)

Complete guide to solar incentives in Tennessee. See how much you can save with the federal tax credit, state programs, utility rebates, and local incentives.

Last updated: Reviewed by: Sarah Chen
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$13,500 Avg. System Cost (7 kW)
$9,450 Net Cost After Incentives
8 yrs Break-Even Timeline
$15,282 20-Year Savings
4.4 hrs Peak Sun Hours/Day
$0.11/kWh Avg. Electricity Rate

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Solar Incentives Available in Tennessee

Here is a breakdown of every solar incentive available to Tennessee homeowners, from federal tax credits to state-specific programs.

IncentiveValueDetails
Federal ITC (30%)$4,050Tax credit on federal return
Property Tax ExemptionYesSolar adds value without raising property taxes
Net MeteringnoneCredit for excess solar energy exported
Additional Programs: TVA Green Power Providers program offers payments for solar generation. No state net metering requirement.

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$0 down options available. Own your system and claim the 30% federal tax credit. Save up to $1,237/year.

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ROI Analysis: Solar Investment in Tennessee

Based on a 7 kW system at $13,500 with 4.4 peak sun hours per day and electricity at $0.11/kWh.

System Cost 13500
Federal ITC Savings 4050
State Incentives 0
Year 1 Electric Savings 1237
20-Year Net Savings 15282

Annual Energy Production: 11,242 kWh

Annual Electric Bill Savings: $1,237

Total Incentive Savings: $4,050

Net System Cost: $9,450

Break-Even: ~8 years

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⚠ The 30% federal solar tax credit is available through 2032. It drops to 26% in 2033. Lock in maximum savings in Tennessee now.

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Utility Companies in Tennessee

Review net metering policies, export compensation rates, and solar programs for each utility serving Tennessee.

TVANet metering: noneNashville Electric ServiceNet metering: noneMemphis Light Gas & WaterNet metering: noneMiddle Tennessee ElectricNet metering: noneKnoxville Utilities BoardNet metering: noneChattanooga EPBNet metering: noneChattanooga Electric Power BoardNet metering: avoided_cost

City Solar Reports in Tennessee

Get city-specific solar ROI projections, local incentives, and break-even analysis.

Nashville4.4 sun hrs · $0.11/kWhMemphis4.7 sun hrs · $0.11/kWhKnoxville4.4 sun hrs · $0.11/kWhChattanooga4.5 sun hrs · $0.11/kWhClarksville4.4 sun hrs · $0.11/kWhMurfreesboro4.4 sun hrs · $0.11/kWhFranklin TN4.4 sun hrs · $0.11/kWhJohnson City4.3 sun hrs · $0.11/kWhJackson TN4.6 sun hrs · $0.11/kWhHendersonville4.4 sun hrs · $0.11/kWh

Best Solar Options in Tennessee

ProviderTypeHighlightRatingAction
EnergySageMarketplaceCompare local Tennessee installers4.8/5Get Quotes
SunrunInstaller$0 down solar in Tennessee4.5/5View Plans
SunPowerPremiumTop efficiency panels4.6/5Get Quote

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Frequently Asked Questions

Homeowners in Tennessee can claim the 30% federal ITC. Net metering status: none.
The average solar installation in Tennessee costs approximately $13,500 for a 7 kW system before incentives. After the federal tax credit and state incentives, the net cost is approximately $9,450.
Based on average electricity rates of $0.11/kWh and 4.4 peak sun hours per day, a solar system in Tennessee typically pays for itself in approximately 8 years.
Net metering in Tennessee is currently classified as "none". This affects how much credit you receive for excess solar energy exported to the grid. Check with your specific utility for current rates.
Based on our calculations, a typical 7 kW solar system in Tennessee can save approximately $15,282 over 20 years, factoring in all available incentives.

SolarSavingsAI Research Team

Solar Energy Analysts

Our team analyzes solar incentive data from federal (DOE, IRS), state (DSIRE), and utility sources to provide accurate savings estimates. Data is reviewed quarterly and cross-referenced with NREL benchmarks.

Sources: DOE, IRS, DSIRE, NREL, EIA Updated: 2026 Full Methodology Editorial Standards

Explore Nearby States

Alabama Solar Rebates 4.7 sun hrs · $0.12/kWh Arkansas Solar Rebates 4.7 sun hrs · $0.1/kWh Florida Solar Rebates 5.2 sun hrs · $0.13/kWh Georgia Solar Rebates 4.7 sun hrs · $0.12/kWh Kentucky Solar Rebates 4.2 sun hrs · $0.11/kWh Louisiana Solar Rebates 4.8 sun hrs · $0.1/kWh

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