Estimated Savings for a Typical Tennessee Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$22,800
State Incentive
None
Net Cost
$22,800
Annual Savings
$1,323
Payback Period
17.2 yrs
25-Year Savings
$22,394
CO₂ Offset/yr
10,316 lbs
Tennessee Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
Net Metering Policy: Avoided Cost
Top utility in Tennessee: TVA. View full incentives detail →
Solar Costs by City in Tennessee
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Nashville | $1,190 | 19.2 | 689,447 | Nashville Electric |
| Memphis | $1,334 | 17.1 | 650,618 | MLGW |
| Knoxville | $1,246 | 18.3 | 190,740 | Knoxville Utilities |
| Chattanooga | $1,557 | 14.6 | 181,099 | EPB |
| Clarksville | $1,278 | 17.8 | 166,722 | CDE Lightband |
| Murfreesboro | $1,374 | 16.6 | 152,769 | Murfreesboro Electric |
| Franklin | $1,458 | 15.6 | 83,454 | Nashville Electric |
| Jackson | $1,316 | 17.3 | 68,205 | Jackson Energy Authority |
| Johnson City | $1,251 | 18.2 | 66,678 | Johnson City Power |
| Bartlett | $1,442 | 15.8 | 59,050 | MLGW |
Solar Savings Calculator
Instant estimate — no email required
$
Quick Facts: Tennessee
- ⚡ Avg rate: $0.118/kWh
- 🌞 Peak sun: 4.8 hrs/day
- 🏭 Top utility: TVA
- 📋 Net metering: Avoided Cost