Solar Energy in Tennessee

There is room for improvement when it comes to solar power in Tennessee. There is very little in the way of state-based or utility-based incentives for installing solar. Also, there is no renewable portfolio standard, which is often what pushes utilities to create rebates for customers.

The bright side is that Tennessee receives more sunlight than many other areas of the US, so a solar system here will produce more than a system would with less sunlight. Tennessee residents can also take advantage of the 26% federal tax credit.

Tennessee Solar Power Facts

$2.68 watt

Average cost: 5kW solar power system.

Average Payback time

On average it takes 7 Years 11 Months to pay back the system.

Average Lifetime Savings

On average, solar power can save you $59,687 over your lifetime.

5¢ kWh

This is the levelized cost of solar energy.

24¢ kWh

This is the levelized cost of energy without solar panels.

14,545 kWh

Annual power production of home solar panels.

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How much do solar panels cost in Tennessee?

$ 0 per watt
Cash purchased solar system​

Before 26% solar tax credit

$ 0 per watt
Financed solar system

Before 26% solar tax credit

$ 0 ¢ /kWh
Lease/PPA

Ave 15 year term, 2.5% price escalator

What are the pros and cons of installing solar panels in Tennessee?

The advantage of installing solar panels in Tennessee is the state’s abundant sunshine, so a solar system here will produce more electricity than in other parts of the country. 

The disadvantage of installing solar panels in Tennessee is that there are almost no state or utility-based incentives. Also, there is no state-mandated net metering policy, so you are not guaranteed to be compensated if your solar system produces excess energy. 

However, the federal tax credit still creates the opportunity for great savings.