Tennessee Solar Incentives & Tax Credits
Every solar incentive available to Tennessee homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $25,159 system, that's a $7,548 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
No State Credit
Tennessee State Incentive
Tennessee has no statewide solar incentive program.
While Tennessee does not offer a statewide solar tax credit, many utilities offer their own rebate programs. Check with your local utility for current offers.
Net Metering in Tennessee
Tennessee has Avoided Cost net metering. Your top utility, TVA, credits you for excess solar power fed to the grid.
Policy Type
Avoided Cost
Electricity Rate
$0.118/kWh
Top Utility
TVA
Utility Net Metering Policies in Tennessee
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| TVA | $0.118 | Avoided Cost | 10 kW residential limit |
| Knoxville Utilities | $0.118 | Avoided Cost | 10 kW residential limit |
| Nashville Electric | $0.118 | Avoided Cost | 10 kW residential limit |
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