Updated for 2026
Independent Consumer Guide
Transparent Estimates
No Obligation Quotes
Tennessee · Updated 2026

Solar Panel Cost in Tennessee

Average costs, savings estimates, and incentives for Tennessee homeowners — plus free installer quotes.

$23,000
Avg. System Cost
before incentives
14.6 yrs
Est. Payback Period
based on avg savings
$1,100
Annual Savings
$92/month
14.6 yrs
Payback Period
11,400 25-yr ROI

Solar in Tennessee: Overview

Tennessee homeowners who go solar can expect to pay around $23,000 for a typical 7.7 kW system before incentives. Note: the 30% federal residential solar tax credit expired December 31, 2025. State and local incentives may still reduce your net cost.

With average annual electricity savings of $1,100, the typical payback period in Tennessee is 14.6 years. Over 25 years, that represents a return on investment of approximately $11,400.

Tennessee's sun score of 68/100 reflects the region's solar irradiance. The state also offers TVA Green Power Switch, which can further reduce your upfront costs.

Solar Incentives in Tennessee

Federal ITC (Section 25D)Expired

Expired December 31, 2025 — no longer available for new residential installs

TVA Green Power SwitchState

State-specific program for Tennessee residents

Property Tax ExemptionVaries

Many states exempt solar from property tax assessments

Net MeteringUtility

Sell excess power back to the grid at retail rates

Frequently Asked Questions — Solar in Tennessee

How much do solar panels cost in Tennessee?

The average solar installation in Tennessee costs approximately $23,000 before incentives. Note: the 30% federal residential solar tax credit expired December 31, 2025. State and local incentives may still apply in your area. Prices vary by system size, installer, and equipment quality.

How much can I save with solar in Tennessee?

Tennessee homeowners save an average of $1,100 per year on electricity with solar. Over 25 years, that's a potential return of $11,400 after accounting for your net system cost.

What solar incentives are available in Tennessee?

Tennessee offers TVA Green Power Switch. Note: the federal 30% residential ITC expired December 31, 2025. Check with your utility company for additional rebates and state programs.

How long is the solar payback period in Tennessee?

Based on average costs and savings, the typical payback period in Tennessee is approximately 14.6 years. After payback, your solar panels continue generating free electricity for 15–20+ more years.

Is solar worth it in Tennessee?

With a sun score of 68/100 and average annual savings of $1,100, solar is a good investment in Tennessee. The TVA Green Power Switch further improves the economics.

Get Tennessee Installer Quotes

Compare quotes from top-rated solar installers in Tennessee — free, no obligation.

Calculate Your Savings

Get a personalized estimate based on your specific bill and roof size.

Share This Page