Solar panels in Tennessee: cost & savings
Tennessee averages 4.4 peak sun hours/day and $0.13/kWh electricity. Here's what solar looks like for a typical home.
Typical Tennessee home estimate
| Average electricity rate | $0.13/kWh |
| Peak sun hours (daily avg) | 4.4 |
| Recommended system size | 8.4 kW (~21 panels) |
| System cost (before incentives) | $25,218 |
| Cost after 30% federal tax credit | $17,653 |
| Estimated payback period | 11.1 years |
| 25-year net savings | $30,212 |
Incentives: Green Power Providers legacy program; TVA buyback. The 30% federal tax credit applies in every state. Statewide net metering is limited — check your specific utility.
How Tennessee compares to the rest of the US
Two numbers drive solar economics: your electricity rate and how much sun your roof gets. Here's where Tennessee stands against the national average.
| Electricity rate | $0.13/kWh (22% lower than the $0.17 US avg) |
| Daily peak sun hours | 4.4 (1% less than the 4.5 US avg) |
| Net metering | Limited / utility-specific |
Tennessee has both below-average electricity prices and below-average sun, so the payback runs longer than in top solar states. Solar can still be worthwhile — especially if your bill is high or rates keep climbing — but it pays to compare a couple of quotes carefully here.
Calculate your own Tennessee savings
Adjust the numbers to match your actual electric bill:
Estimate your solar savings
Two quick inputs. We use your state's real electricity rate and sun hours.
Is solar worth it in Tennessee?
With Tennessee's electricity at $0.13/kWh and 4.4 daily sun hours, a typical solar system pays for itself in about 11.1 years and produces an estimated $30,212 in net savings over its 25-year life, after applying the 30% federal Investment Tax Credit. The higher your bill and the more sun your roof gets, the faster the payback.
These figures are estimates. Get free quotes from local Tennessee installers to see real pricing for your roof.
Tennessee solar FAQ
How many solar panels do I need in Tennessee?
A typical Tennessee home needs roughly 21 standard 400-watt panels (about a 8.4 kW system) to offset its electricity use, given Tennessee's 4.4 daily peak sun hours. A higher bill or shadier roof pushes that number up.
Does Tennessee have net metering?
Tennessee doesn't have broad statewide retail-rate net metering, but many utilities run their own buyback or billing programs, so check your specific provider. Green Power Providers legacy program; TVA buyback. The 30% federal tax credit applies in every state.
What's the payback period for solar in Tennessee?
For a typical $117/month bill, the estimated payback is about 11.1 years, after which the power your panels produce is essentially free for the remaining ~14 years of the system's life.