Solar Quotes in Tennessee
TVA area: no net metering, avoided-cost buyback
- If your local power company is served by TVA, then under TVA's Dispersed Power Production program, you can sell all or part of your excess generation to TVA at TVA's monthly avoided cost, with a 5-year commitment. TVA listed the rate as $0.034/kWh and says it's "updated monthly and subject to change at any time." Source: https://www.tva.com/energy/valley-renewable-energy/dispersed-power-production-program (accessed 2026-10-20)
Little policy at the state level
We didn't find a statewide incentive as of October 2026. We also didn't find a state net metering law on an official Tennessee source. Check with your local power company about interconnection.
A note on the federal tax credit
The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed. Source: https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb (accessed 2026-10-20). This page isn't tax advice.
Is solar worth it in Tennessee?
It depends on your bill, roof and utility rules. Here is an estimate for a home with a $150 monthly electric bill and a south-facing, unshaded roof, before any incentives:
- Residential electricity averaged an estimated 13.87¢/kWh in Tennessee (January–July 2026), below the U.S. average of 18.19¢ (43 of 51, highest first). Source: EIA Electric Power Monthly, Table 5.6.B (accessed 2026-10-20)
- Small rooftop systems in Tennessee produced an estimated 1,534 kWh per kW of panels in 2024 (2024 small-scale solar generation divided by average 2023–2024 small-scale capacity). Source: EIA Electric Power Annual 2024, Tables 3.21 and 4.7.B (accessed 2026-10-20)
- Estimated system size: 6.4–8.6 kW, producing about 11,505 kWh a year (estimated).
- Estimated installed cost: $22,500–$39,000 before incentives, using $3.00–$5.20 per watt. Source: Lawrence Berkeley National Laboratory (2024 installed prices, 20th–80th percentile; accessed 2026-10-20)
- Estimated simple payback: 12–29 years. Savings depend on how your utility credits exported energy (see above).
Estimates only, based on public data and simple assumptions. Actual production, cost, and savings vary by home, utility, rate plan, and installer. Not a quote, and not a guarantee of savings. Ask your installer about any state, local, or utility incentives that apply. State and local programs: DSIRE.
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