There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Tennessee is a good place to go solar, though not due to much effort from state legislators. The state gets a strong amount of sun throughout the year, and solar module prices continue to fall.
Regardless, we still think Tennesseans demand that the state legislature and the TVA board reinstate solar net metering. That policy compels your utility company to rightfully credit you for the solar energy you feed back to them which you can’t use onsite.
Read on to explore the entire savings, policy, and incentive picture for home solar panel installation in Tennessee.
Learn what solar incentives are available to Tennessee homeowners
See what Tennessee solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Tennessee solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Tennessee
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.
Tennessee lacks any statewide program for net metering, and there hasn’t been so much of a peep out of the legislature on movement to create one.
Fortunately, with the entire state in its service area, TVA has announced its new “Dispersed Power Program”. This is basically the same thing as net metering, however the credits you get for sending your electricity back to TVA when you’re not using it are set by TVA annually, and will probably not be near full retail rates. For clearer savings estimates, connect with an installer in Tennessee we trust.
While Tennessee does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
When you install a solar power system in Tennessee, the cost of that system is exempt from all sales tax. That saves you 6.25-8.25 % off the starting cost! You can choose to apply for the exemption up front (again, our installer partners will take care of all of this for you!) or to take the amount after the system is installed as a sales tax rebate. Hey! Tennessee does have a state tax credit … sorta. It’s not money back per se, but money not spent is still money saved!
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Prices based on a 11.7kW system, after 30% federal tax credit
13 solar companies in Tennessee provide pricing on SolarReviews. Here are the best rated companies near you.
4.77 70 Reviews
Jan, over 1 month
Ian designed a great system for our home, made sure we made changes for our electrical panel and generator prior to installation. Kept me posted on the wait time for equipment. When the equipment arrived, he scheduled the installation and was here every day it didn't rain. System works great and passed inspection with no issues. Ian is also professional and answers all of your questions well. Thanks Ian!
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Average cost (5kW system)
$11,900 ($2.38 per watt)
Jan, over 1 month
Ian designed a great system for our home, made sure we made changes for our electrical panel and generator prior to installation. Kept me posted on the wait time for equipment. When the equipment arrived, he scheduled the installation and was here every day it didn't rain. System works great and passed inspection with no issues. Ian is also professional and answers all of your questions well. Thanks Ian!
4.63 71 Reviews
Jim Jamestown TN, over 1 month
Operations Coordinator and technical consultant was very responsive. Some minor problems with installation. We are very remote and being 3 hrs out LightWave corrected the problem immediately. System has been up and running for approx 4 months. I also contacted their Marketing Manager Grace with insight to their portal for monitoring my system online and she was very helpful. I would recommend LightWave to anyone looking for Solar capabilities. Jim Jamestown TN
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Jim Jamestown TN, over 1 month
Operations Coordinator and technical consultant was very responsive. Some minor problems with installation. We are very remote and being 3 hrs out LightWave corrected the problem immediately. System has been up and running for approx 4 months. I also contacted their Marketing Manager Grace with insight to their portal for monitoring my system online and she was very helpful. I would recommend LightWave to anyone looking for Solar capabilities. Jim Jamestown TN
4.18 9 Reviews
Teresa , over 1 month
Respectful. Down to earth and great representation.
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Teresa , over 1 month
Respectful. Down to earth and great representation.
4.17 6 Reviews
Anonymous, over 1 month
We needed a new roof; and GES Solar were professional, easy to work with, their price quote was exactly what they charged, and much cheaper than other companies.
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Anonymous, over 1 month
We needed a new roof; and GES Solar were professional, easy to work with, their price quote was exactly what they charged, and much cheaper than other companies.
Melissa, over 1 month
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3.93 2 Reviews
Anonymous, over 1 month
Krebs Ventures/Construction Art worked with me on a very large government project and I couldn't be happier with the outcome!
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Anonymous, over 1 month
Krebs Ventures/Construction Art worked with me on a very large government project and I couldn't be happier with the outcome!
3.75 1 Reviews
DeLee Johnson, over 1 month
The guys at AEG solar based in Little Rock do what they say and follow up keeping their word. They are extremely explanatory making sure the information they give is well understood. They have gone above and beyond the extra mile for me and I'm sure they will for anyone who hires their services. John, Jaimin & Kevin are not only true to their word, they are very personable and fun to talk with. They do an impeccable job as well!!
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DeLee Johnson, over 1 month
The guys at AEG solar based in Little Rock do what they say and follow up keeping their word. They are extremely explanatory making sure the information they give is well understood. They have gone above and beyond the extra mile for me and I'm sure they will for anyone who hires their services. John, Jaimin & Kevin are not only true to their word, they are very personable and fun to talk with. They do an impeccable job as well!!
Longo, over 1 month
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3.75 1 Reviews
Madison S, over 1 month
Green Wave provided us more solar for 15K less than our other options! Excellent customer service - they communicated with us through the whole process and we’re always available when we had questions. Highly recommended!
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Madison S, over 1 month
Green Wave provided us more solar for 15K less than our other options! Excellent customer service - they communicated with us through the whole process and we’re always available when we had questions. Highly recommended!
3.51 25 Reviews
Sameer Bakare, over 1 month
Solar Sale USA is very unprofessional they did not keep me informed of my installation. I had to contact them weekly only to be lied to as to when I would get my Installation. They promised several installation dates only to give a different date when that date arrived . I was told I could not cancel agreement due to cost already put into my project by Solarsaleusa. I will regret doing business with this company. I would not refer them to anyone else. I will be filling a complaint with the State Board regarding me not being allowed to cancel due to the length of time it took to get my installation, lack of professionalism of Ann Thomas and Faye . Consumers be ware do not do business with Solarsaleusa.
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Sameer Bakare, over 1 month
Solar Sale USA is very unprofessional they did not keep me informed of my installation. I had to contact them weekly only to be lied to as to when I would get my Installation. They promised several installation dates only to give a different date when that date arrived . I was told I could not cancel agreement due to cost already put into my project by Solarsaleusa. I will regret doing business with this company. I would not refer them to anyone else. I will be filling a complaint with the State Board regarding me not being allowed to cancel due to the length of time it took to get my installation, lack of professionalism of Ann Thomas and Faye . Consumers be ware do not do business with Solarsaleusa.