Solar panels Tennessee:

Prices, incentives and best companies 2024

Avg TN solar panel cost:

$10,376 - $12,682*

Avg 25 year savings:

$45,456 - $55,557

Avg payback period:

5.8 - 7.1 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.

Tennessee solar panels guide 2024

Updated April 14, 2023

Tennessee may deliver when it comes to great weather and live music, but they’re lacking in the solar incentive department. Unlike many states, Tennessee has no mandated net metering or incentive programs. There are also no utility incentives or rebates that push homeowners to go solar.

On the bright side, Tennessee is sunny, so your solar system will be put to great use. Also, there’s always the 30% federal solar tax credit to take advantage of.

On this page:

Solar power prices, savings and payback in your part of Tennessee

The average cost for an installed residential solar system in Tennessee is currently $10,441 after claiming the 30% federal solar tax credit. This is $2.49 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Cost range of local prices


Net profit (savings less system cost)


Payback period

5.8-7.1 years

Recommended size for the selected utility bill


Solar panel cost calculator

Cash flow graph based on cash purchase of a 5.4kW system

Are solar panels worth it in Tennessee

Solar panels have fallen in price by more than 80% in the last ten years. In 2022 they also remain subsidized by the 30% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

5¢ /kWh

If you don't get solar

24¢ /kWh

(forecast avg Tennessee electric rates over the next 25 years)

TN solar panel cost calculator

Best 10 solar installers in Tennessee


Tennessee solar incentives & tax credits

Federal solar tax credit

The federal solar tax credit is the most significant incentive to install solar panels for homes and businesses. From now until 2032, the federal solar tax credit lets you deduct 30% of the cost of your solar installation from your income taxes. That means a $20,000 solar installation will give you a tax credit of $6,000!

Tennessee has no statewide requirement for utilities to offer net metering to solar customers. Despite this, a few utility companies do purchase excess solar energy generated by solar panels. However, the company buys that extra energy for much less than it charges for electricity, leading to lower electricity bill savings. 

You can check your utility’s website for more information about if and how they purchase solar power, or you can use our solar panel calculator.

Green energy property tax assessment

Usually, a solar installation in Tennessee would cause your property taxes to increase. However, thanks to the green energy property tax assessment, a homeowner’s property taxes can only increase by up to 12.5% of the installed costs associated with the solar energy system. 

The exemption can save homeowners a lot of money by preventing a dramatic increase in what they owe in taxes.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Property Tax Incentive

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Top models of solar panel installed in Tennessee 2024

Average cost of solar panel installation in Tennessee by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $10,844 $11,603
5kW $13,015 $13,926
6kW $14,916 $15,960
7kW $17,213 $18,418
8kW $19,840 $21,229
9kW $21,726 $23,247
10kW $23,870 $25,541

Best solar companies in the main cities of Tennessee

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Tennessee

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2024 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Off-grid solar system

Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Tennessee in 2024?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Tennessee will fall during 2024.

How much electricity do solar panel systems generate in Tennessee?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 23-degree pitch roof Tennessee will generate 1,550kWh of peak DC (direct current) capacity per year per 1kW in Tennessee.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

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. Homeowners can also take advantage of the 30% federal solar tax credit. The green energy property tax assessment has the potential to save you money as well.

The disadvantage of installing solar panels in Tennessee is that there aren’t any state-wide or utility-based incentives. On top of that, there’s no mandated net metering, meaning you aren’t guaranteed compensation for any excess energy your system produces.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Tennessee solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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