Is Solar Worth It in Tennessee?
Yes — solar is increasingly attractive in Tennessee.
Net metering (where available) and strong sun support payback in 8–11 years. TVA and other utilities have solar programs.
Average Cost of Solar in Tennessee (2026)
The total cost of a residential solar system depends on system size, roof type, and installer pricing.
Typical 6–8 kW system:
- Average cost before incentives: $14,000 – $21,000
- Federal tax credit (30%): -$4,200 – $6,300
- Average net cost after federal credit: $9,800 – $14,700
The federal 30% Residential Clean Energy Credit is administered through the Internal Revenue Service.
Typical systems are 6–8 kW.
Solar Incentives in Tennessee
1. Federal Solar Tax Credit (30%)
30% of installation costs deductible from federal taxes.
2. Net Metering / Utility Programs
TVA and other utilities offer solar programs; terms vary. Check your provider.
3. State
Check DSIRE for current state and utility incentives.
Electricity Rates in Tennessee
Tennessee rates are often below the national average.
A typical Tennessee homeowner spends $1,200–$1,800 per year on electricity.
Solar can offset most or all of this cost.
Payback Period in Tennessee
Most homeowners see:
- Payback period: 8–11 years
- 25-year savings: $22,000–$48,000+
Savings depend on roof orientation, local utility rates, system size, and financing method.
Best Cities for Solar in Tennessee
Solar performs well statewide, but adoption is strongest in:
- Nashville
- Memphis
- Knoxville
- Chattanooga
- Clarksville
Suburban homes with south-facing roofs tend to achieve the highest ROI.
Is Solar Worth It in Tennessee? (Summary)
Solar makes the most sense if:
- You plan to stay 8+ years
- Your roof has good sun
- You qualify for the federal tax credit
Solar makes sense for homeowners with good roof exposure and favorable utility terms.
How to Calculate Your Tennessee Solar Savings
Every home is different.
To get a personalized estimate, use the calculator on this page: enter your ZIP, monthly bill, and optional system size to see projected savings and payback.