Solar panels in Tennessee
What a residential solar system actually costs in Tennessee in 2026 — plus incentives, payback, and how to pick a vetted installer.
The real cost of solar in Tennessee
A typical 10.5 kW rooftop system in Tennessee runs about $29,925 installed. The federal Residential Clean Energy Credit knocks 30% off — around $8,978 — bringing the net price to roughly $20,947.
Tennessee adds its own incentive: None (TVA GPP closed). Stack that on top of the federal credit.
What you'll produce — and save
- ~14,104 kWh/year from a 10.5 kW system at 4.6 peak sun hours.
- At 12.9¢/kWh that's $1,819/yr off your electric bill in year one.
- Estimated payback: 11.5 years.
- 25-year net savings (2.5% annual rate escalation): $41,186.
Estimates only. Actual production depends on roof orientation, shade, equipment and your utility's specific tariff.
Net metering in Tennessee
Tennessee operates under a none policy for residential solar exports. There is no statewide net-metering mandate. Design conservatively and pair solar with storage to maximize self-consumption.
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FAQ
How much do solar panels cost in Tennessee?
A typical 10.5 kW residential system in Tennessee costs about $29,925 before incentives, or roughly $2.85 per watt installed. After the 30% federal tax credit that drops to about $20,947.
Is solar worth it in Tennessee?
With an average residential electricity rate of 12.9¢/kWh and 4.6 peak sun hours per day, a properly sized system typically pays for itself in about 11.5 years and saves roughly $41,186 over 25 years.
Does Tennessee have net metering?
Tennessee operates under a none policy for residential solar exports. Exact credit values vary by utility — always confirm with the specific utility serving your address.
What state incentives are available in Tennessee?
State incentive: None (TVA GPP closed). Property tax exemption: No. Sales tax exemption: No. The 30% federal Residential Clean Energy Credit also applies.
Get vetted Tennessee installer quotes.
SolarPros only lists installers who pass our licensing, insurance and reputation checks. Free to request — no pressure.
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Sources: EIA average residential electricity rates, NREL PVWatts sun hour data, DSIRE state incentive database, LBNL "Tracking the Sun" installed-cost benchmarks. Figures are estimates for guidance only, not a binding quote.