Solar Panels in Tennessee: Cost, Savings & Incentives (2026)
How much do solar panels cost in Tennessee in 2026? Typical 9.0 kW system: $18,900 after 30% ITC, 18.6-year payback, 5.0 sun hrs/day, 12.2¢/kWh. Free calculators.
Calculate your exact Tennessee numbers
Pre-loaded with Tennessee electricity rates and sun hours — free, instant, no signup.
Tennessee solar decision guides
Data hub — jump to in-depth sizing, bill-based, or policy guides. This page stays focused on rates & incentives.
Tennessee solar snapshot (2026)
A 9 kW system in Tennessee produces roughly 13,140 kWh/year at 5 peak sun hours and 12.2¢/kWh — saving about $1,603/year with ~11-year payback after the 30% ITC.
| Cost item | Amount |
|---|---|
| System cost (9 kW) | $27,000 |
| Federal 30% ITC | −$8,100 |
| Net cost after ITC | $18,900 |
| Est. annual savings | $1,603/yr |
| 25-year net profit (est.) | $21,175 |
Get at least 3 installer quotes — pricing varies up to 30% within the same state.
Tennessee solar incentives
Federal ITC — 30%
All US homeowners qualify for the 30% federal Investment Tax Credit through 2032. On a $27,000 system, that's a $8,100 dollar-for-dollar tax credit.
Tennessee state programs
Tennessee does not offer a state solar tax credit. TVA (Tennessee Valley Authority) customers may be eligible for the TVA Green Power Providers program. EPB in Chattanooga and other municipally-owned utilities have their own renewable energy programs. Federal 30% ITC applies to all Tennessee installations.
Is solar worth it in Tennessee?
Tennessee homeowners benefit most when system size matches actual usage and roof orientation is south-facing. Use the calculators above for a bill-specific estimate, or open a decision guide below for sizing by monthly bill or home sq ft.
Frequently asked questions
Direct answers for US homeowners in Tennessee.