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Tennessee · TN

Solar Panels in Tennessee:
Is It Worth It in 2026?

Tennessee averages 1328.2 kWh per kWp per year with 5.2 peak sun hours per day. At 13.1¢/kWh, an 8 kW system saves roughly $1,392/year and pays back in about 10.9 years.

Tennessee Solar at a Glance

Peak sun hours / day5.2 hrs
Avg solar yield1328.2 kWh/kWp/yr
Electricity rate13.1¢ / kWh
Avg payback (8 kW)10.9 years
Annual savings (8 kW)$1,392/yr
Net meteringVaries by utility — check your provider

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Tennessee

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

TVA Generation Partners buyback program, property tax exemption

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in Tennessee

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax Exemption — Solar-added home value not taxed
Net Metering — Varies by utility — check your provider

How Much Solar Power Do Tennessee Cities Get?

Real PVGIS yield data and EIA electricity rates for all 6 cities. Click any city for detailed payback calculations.

Nashville
1300.2 kWh/kWp · 11.1 yr payback
Memphis
1390.4 kWh/kWp · 10.4 yr payback
Knoxville
1320.9 kWh/kWp · 10.9 yr payback
Chattanooga
1334.9 kWh/kWp · 10.8 yr payback
Clarksville
1309.5 kWh/kWp · 11 yr payback
Murfreesboro
1313.2 kWh/kWp · 11 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for Tennessee.

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All Tennessee incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Tennessee: Frequently Asked Questions

Is solar worth it in Tennessee?
For many homeowners, yes — though payback is longer than average in Tennessee. Low electricity rates (13.1¢/kWh) extend payback to 10.9 years. But the 25-year savings (~$25,626) still significantly exceed system costs, and electricity prices will likely rise. The Tennessee Valley Authority (TVA) operates a Generation Partners program paying a premium for solar generation, but it has limited capacity. Net metering terms vary.
What solar incentives are available in Tennessee?
Tennessee homeowners can stack multiple incentives: the state solar incentives (federal ITC expired Dec 2025) (ITC) — $6,480 on a typical 8 kW system; a property tax exemption (solar-added home value not taxed); and net metering through TVA / Memphis Light Gas & Water. The Tennessee Valley Authority (TVA) operates a Generation Partners program paying a premium for solar generation, but it has limited capacity. Net metering terms vary.
How much electricity do solar panels produce in Tennessee?
Tennessee averages 1328.2 kWh per kWp of solar per year — 11% below the US average. An 8 kW system produces roughly 10,626 kWh/year, with a monthly average of 110.7 kWh/kWp. Output varies by location: southern Tennessee produces more than the north.
How much do solar panels cost in Tennessee?
The average 8 kW system in Tennessee costs approximately $21,600.0 before incentives. After the 30% federal ITC ($6,480), your net cost is around $15,120. Prices range from $2.40–$3.20/watt installed depending on installer, panel brand, and moderate climate, good year-round sun in the south.

Going Solar in Tennessee: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Tennessee. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Tennessee average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 13.1¢/kWh in Tennessee, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Tennessee does not have a statewide solar tax credit, but utility rebates and net metering may still apply. TVA Generation Partners buyback program.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Tennessee typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Tennessee: Tennessee averages 1328.2 kWh/kWp/year with 5.2 peak sun hours/day. Electricity costs 13.1¢/kWh. An 8 kW solar system saves ~$1,392/year and pays back in 10.9 years. TVA Generation Partners buyback program, property tax exemption.