TVA Green Connect program offers limited interconnection but no net metering.
Avg residential rate12.5¢ / kWh
Avg system cost$2.80 / W ($33,600 for 12 kW)
Peak sun hours / day4.6
Net meteringNo Net Metering
State tax creditNone
Federal tax credit30% (Residential Clean Energy Credit, through 2032)
Property tax exemptionNo
Sales tax exemptionNo
Tennessee payback by monthly electric bill
The bigger your current bill, the faster solar pays back. Here's how the numbers work out for a typical Tennessee home:
Monthly bill
System size
Gross cost
Federal credit
State credit
Net cost
Year-1 savings
Payback
$100
7 kW
$19,488
−$5,846
$0
$13,642
$1,139
10.6 yr
$150
10.5 kW
$29,260
−$8,778
$0
$20,482
$1,711
10.6 yr
$200
13.9 kW
$39,004
−$11,701
$0
$27,303
$2,280
10.6 yr
$300
20 kW
$56,000
−$16,800
$0
$39,200
$3,274
10.6 yr
Assumes 95% bill offset, 3% annual rate inflation, 0.5% annual panel degradation, and a 25-year system life.
Calculate your exact Tennessee solar payback
Enter your real monthly electric bill to see your personalized payback estimate.
Best path forward in Tennessee
The fastest, free way to see real installer quotes for your roof is to use a marketplace like EnergySage. You'll get up to 4 competing bids from local pros without phone harassment.
Frequently asked questions about solar in Tennessee
How long does it take for solar panels to pay for themselves in Tennessee?
For a typical Tennessee home with a $150/month electric bill, a 10.5 kW system pays for itself in about 10.6 years. Higher bills (or higher state incentives) shorten this; lower bills lengthen it.
What's the average cost of solar panels in Tennessee?
Tennessee installers average $2.80 per watt before incentives. A typical 12 kW system costs roughly $33,600 gross, or about $20,482 after federal and state credits.
Does Tennessee offer a state solar tax credit?
Tennessee does not offer a state-level solar tax credit. However, the 30% federal Residential Clean Energy Credit still applies, and there may be utility rebates in your service area.
Does Tennessee have net metering?
Tennessee does not require utilities to offer net metering. Some utilities offer limited interconnection or buyback at avoided-cost rates. This typically extends payback periods.
Are solar panels worth it in Tennessee in 2026?
For most Tennessee homeowners with a monthly electric bill above $100, the answer is yes — payback typically lands between 7.4 and 13.8 years depending on roof orientation, shade, and incentive timing. The 30% federal credit is locked in through 2032, removing a major timing risk.