* 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 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.
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.
Showing data for:
Prices based on a 5.4kW system, after 30% federal tax credit
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.
(forecast avg Tennessee electric rates over the next 25 years)
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.
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.
(After tax credit)
(After tax credit)
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.
Minimum of 25 years but generally 30 or more
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2023 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
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.
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 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.
No, but cleaning them can improve power generation if they are dirty.
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 2023.
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.
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.
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.