Tennessee Solar Incentives & Tax Credits
Every solar incentive available to Tennessee homeowners in 2026.
Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $25,159 system that once carried a $7,548 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
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.
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 |
Solar Savings Calculator
Instant estimate — no email required
Ready to Go Solar in Tennessee?
Get free quotes from licensed installers in your area. Compare prices and choose the best deal.
Get Free Quotes in Tennessee →