☀️ Tennessee · 2025 data

Is solar worth it in Tennessee?

At Tennessee’s average rate of 13¢/kWh and about 1300 kWh per kW of panels a year, a typical home pays back its system in roughly 11.2 yrs after the 30% federal credit — then keeps saving. Run your own numbers below.

$ / mo
$ / watt
$
to pay back your system
System size
Net cost after 30%
Year-1 savings
25-yr net savings

Independent estimate for guidance only — not a quote or advice. TVA territory offers limited export compensation; size to self-consumption.

What drives solar payback in Tennessee

Tennessee homeowners pay about 13¢/kWh, which is 3.8¢ below the national average. A rooftop here generates roughly 1300 kWh per kW each year — below the typical US figure. On exports, Tennessee offers limited net metering: TVA territory offers limited export compensation; size to self-consumption.

A worked example

For a Tennessee home with a $160/month power bill:

11.4 kW
System size needed
$23,858
Net cost after 30% credit
$1,920
First-year savings
$37,542
25-year net savings

Assumes 3.00 $/W installed before incentives. Your actual cost, roof and usage will differ — adjust the calculator above.

Tennessee solar incentives

Every estimate here already includes the 30% federal Residential Clean Energy Credit. On top of that, Tennessee homeowners may qualify for state, utility or SREC incentives that change often and vary by provider. For the current, authoritative list, check DSIRE’s Tennessee programs, then type any rebate into the calculator to see how it shortens your payback.

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