Solar Panels in Tennessee
Growing Solar Market in the Mid-South
$900–$1,200/yr
Avg. Annual Savings
4.8 hrs/day
Peak Sun Hours
11–16 years
Payback Period
$13,500–$20,000
Avg. System Cost
Overview
Is Solar Worth It in Tennessee?
Tennessee has decent solar potential at 4.8 peak sun hours per day. TVA's Generation Partners program provides a premium rate for solar generation for most Tennessee homeowners. With no state income tax credit and the federal ITC expired, payback periods of 11–16 years are typical in 2026. The competitive installer market in Nashville and Memphis keeps system costs below the national average.
Benefits
Why Go Solar in Tennessee
Reduce Your Electric Bill
Tennessee homeowners save an average of $900–$1,200/yr after going solar.
State & Local Incentives
Tennessee offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Tennessee Solar Incentives & Tax Credits
TVA Generation Partners
State ProgramTVA pays a premium rate for solar generation through participating local utilities. Rates vary by utility and are subject to program availability.
Tennessee Sales Tax Exemption
Tax CreditSolar energy equipment is exempt from Tennessee's 7% state sales tax.
What Changed in 2026 for Tennessee Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Tennessee homeowners and what options remain.
Federal ITC Has Expired
The 30% federal residential solar tax credit expired Dec 31, 2025. No federal credit is available for systems installed in 2026. Tennessee has no state income tax credit for solar.
TVA Generation Partners Program Active
TVA's Generation Partners program pays a premium rate for solar generation through participating local utilities. Rates vary by utility and program availability.
Sales Tax Exemption Remains
Solar energy equipment is exempt from Tennessee's 7% state sales tax, providing meaningful upfront savings. No statewide property tax exemption exists.
Common Questions
Tennessee Solar FAQ
Local Solar Companies
Solar Companies by City in Tennessee
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