Solar Panels in Tennessee: 2026 Cost, Savings & Incentives
Solar in Tennessee (2026): a typical 9 kW system costs ~$27,000 with no federal credit, saves ~$1,027/yr and pays back in ~26.3 years.
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Tennessee solar decision guides
Data hub — jump to in-depth sizing, bill-based, or policy guides. This page stays focused on rates & incentives.
How much does solar cost and save in Tennessee in 2026?
A typical 9 kW system (23 × 400 W panels) costs about $27,000 installed and produces roughly 13,468 kWh/year at 5 peak sun hours. At 13.87¢/kWh with no statewide net metering — utility-dependent, that is worth about $1,027 in the first year — a ~26.3-year simple payback with no federal tax credit.
| Item | Estimate |
|---|---|
| Installed cost at $3.00/W | $27,000 |
| Federal tax credit (§25D ended 12/31/2025) | $0 |
| Annual production | 13,468 kWh |
| Value of production counted (55% — net-metering adjusted) | $1,027/yr |
| Simple payback | ~26.3 years |
| 25-year net savings (3%/yr rate rise, 0.5%/yr degradation) | $8,000 |
Estimates before state or utility incentives. Installed prices for the same system often differ 20–30% between installers — get at least three quotes. Methodology
Does Tennessee have net metering?
No statewide net metering — utility-dependent. Most of Tennessee is TVA territory with no retail net metering; exports are credited at a low wholesale-based rate.
When exports earn little, size the system to your daytime usage, shift flexible loads (EV charging, laundry, pool pumps, water heating) into sunny hours, or pair solar with a battery. A system sized to 100% of annual use usually pays back more slowly here.
What solar incentives are available in Tennessee?
Federal: no credit for 2026 installs
The 30% Residential Clean Energy Credit (§25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21). Systems finished in 2025 are claimed on the 2025 return, and unused credit from earlier years can still carry forward. Leases and PPAs are the exception: the company that owns the system can still use the commercial §48E credit for systems placed in service by the end of 2027 and may pass some of that value to you. IRS guidance
Tennessee state and local programs
Tennessee has no state solar tax credit or statewide rebate program.
Program details change often — verify on DSIRE and with your utility. Policy checked September 29, 2026.
Is solar worth it in Tennessee in 2026?
For a typical cash purchase, the math is weak: a ~26.3-year payback at average prices. Consider efficiency upgrades first, get quotes well under $3/W, size to daytime use, or compare lease/PPA offers — and treat backup power (with a battery) as the main benefit rather than savings.
Run your own numbers with the solar savings calculator — enter your real bill and a real quote.
Frequently asked questions
Direct answers for US homeowners in Tennessee.