
Tennessee
Tennessee solar in 2026
Tennessee does not have a statewide net-metering promise to lean on. TVA and the local power company set the rules, so the homeowner job is not to find a magic statewide tariff. It is to make sure the system consumes most of what it produces and that the local interconnection terms are on paper.
Tennessee quotes need a tougher burden of proof
Roof output still matters, yet a modest retail price and higher ownership cost leave less room for optimistic assumptions. The useful question is which purchases the system will actually displace.
| Energy source | Type | Average price | What that means |
|---|---|---|---|
| Tennessee statewide blend | Electricity | 14.47¢ per kWh | EIA's statewide residential measure through May 2026. |
| Tennessee residential gas | Natural gas | $16.83 per Mcf | Residential-gas comparison from the May 2026 EIA series. It is about 5.5 cents per thermal kWh, with about 304 kWh of thermal energy in 1 Mcf. |
| Rooftop solar, owned | Electricity | ~9.2¢ per kWh | Ownership cost annualized across 25 years from Tennessee EnergySage pricing and our PVGIS production runs. Its proximity to the grid rate is why excess capacity deserves scrutiny. |
Power pricing comes from EIA Table 5.6.A for May 2026; the fuel comparison uses EIA natural gas prices. See the solar methodology.
Tennessee sun has a west-to-east tilt
Memphis is the strongest city run, Nashville the lightest. That difference is enough to change a quote, but it does not create a statewide export right.
| Market | Annual solar yield per kW | Approximate output from 14.06 kW in one year |
|---|---|---|
| Nashville | 1357.1 | 19,081 kWh |
| Memphis | 1454.3 | 20,447 kWh |
| Knoxville | 1382.5 | 19,438 kWh |
| Chattanooga | 1394.9 | 19,612 kWh |
Method: PVGIS v5.2 model runs by Solar Learning Lab on August 18, 2026, using the NSRDB radiation database. Assumptions: fixed roof mount, south facing, 30 degree tilt, 14 percent losses. Your roof will differ.
TVA territory is not a net-metering state
There is no Tennessee net-metering mandate, and the state commission does not set the retail electricity terms of TVA local power companies. TVA's homeowner offering is Green Connect, a resource and education path. Sales of generation run through Dispersed Power Production, which is available to qualified facilities up to 80 MW.
That is a different thing from a residential promise that every exported kWh offsets retail purchases. Ask the local power company what it credits, when it credits it, and what agreement applies before approving design. A quote that says "TVA net metering" without a tariff is not enough.
Tennessee tax treatment is not cash back
| Item | Value | Fine print |
|---|---|---|
| Green Energy Property Tax Assessment | Initial solar value no more than 12.5% of installed cost | Tenn. Code Ann. 67-5-601 requires the applicable certification or filing, including a March 1 comptroller submission (statute text). |
| Federal 25D | Ended December 31, 2025 | Lease and PPA providers can still claim 48E and may share value in pricing (CRS). |
In Tennessee, the local power company is part of the deal
A statewide solar summary cannot answer the contract question here. Tennessee has no state net-metering mandate, and the state commission does not set retail electricity terms for TVA's local power companies. The relevant chain is your home, the local power company, and TVA. That is where interconnection and any generation-sale terms are determined.
TVA's Green Connect offering is useful for homeowner resources, guidance on rooftop solar or solar plus battery, and its Virtual Solar Education platform. It is not a statewide retail-credit promise. For owners seeking to sell generation to TVA, the named path is Dispersed Power Production, available to existing generation system owners with qualified facilities up to 80 MW. Don't let a quote blur those distinct programs.
The property assessment rule is worth separating from the energy calculation. Tenn. Code Ann. 67-5-601 caps solar's initial value at not more than 12.5% of total installed cost, including at reappraisal, if the applicable certification or filing is in place. The claimant must submit the relevant documentation to the comptroller by March 1. That can affect assessed value. It does not add cash to a project budget.
Before equipment is ordered, request the written interconnection path and ask who will provide the agreement. Then ask the installer to mark every savings assumption that depends on exported electricity. Nashville Electric Service is a clean reminder of the structure: it generates no power and purchases all of its energy from TVA. A local utility's role is not a minor detail in this state. It is the framework.
The scale of the local entities is another reason not to generalize. Nashville Electric Service reports 472,930 customers. Memphis Light, Gas and Water reports 445,754 electric customers, including 385,014 residential. Knoxville Utilities Board serves nearly 520,000 customers across electric, fiber, gas, water and wastewater. None of those facts substitutes for the terms that apply to your account, but they show why a statewide talking point is the wrong starting point.
TVA Valley Renewable Energy for Home; Tenn. Code Ann. 67-5-601; NES 2025 Fiscal Facts.
Treat the calculator as a load-matching screen
This output illustrates avoided retail purchases under its inputs. It cannot create a sale agreement for surplus generation in TVA territory.
The slider spans four Tennessee PVGIS runs. Memphis is the high end; Nashville is the low end in this sample.
Cash quotes in Tennessee cluster near $3.22 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.
Assumptions you can change
Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.
Cash purchase
$27,370 after state credit
- Year 1 benefit
- $143/mo
- Payback
- 14 years
- 20 year net position
- $14,327
There is no verified Tennessee residential income-tax credit or cash rebate. The tax assessment rule is a valuation cap, not cash in your pocket.
Solar loan
$338/mo 15 yr payment
- Year 1 net
- -$195/mo
- Upfront
- $0
- 20 year net position
- -$19,087
The $4.42 per watt loan input reflects the $3.22 Tennessee cash figure plus the $1.20 LBNL loan-over-cash spread.
Lease / PPA
$0 down you buy the power
- Year 1 net
- -$94/mo
- Upfront
- $0
- 20 year net position
- -$24,138
Third-party ownership can still use the federal 48E business credit, but export terms still depend on TVA and your local power company.
Estimates, not quotes. Inputs use Tennessee's EIA rate, PVGIS production runs, and EnergySage cost data. The calculator values production at retail, which is aggressive where no net-metering right exists. We are a solar installer and we also partner with other solar companies. See our disclosures.
A Tennessee quote needs these documents
- Start with the local power company, not a statewide policy summary.
- Ask for the written interconnection and export agreement before equipment ordering.
- Treat the 12.5% assessment cap as property-tax treatment, not as a cash incentive.
- Favor loads that happen while the array is producing if exported energy has weak terms.
Nashville-area installers to vet
These names can start a local contractor search. The more revealing test is whether each company can explain the current requirements of your own local power company.
ReNew Solar Solutions
Nashville, TN
4.9(81 Google reviews)
LightWave Solar, LLC
Nashville metro, TN
4.7(74 Google reviews)
MCH Nashville, LLC
Old Hickory, TN
4.5(68 Google reviews)
Nashville Solar Works
Hendersonville, TN
4.9(31 Google reviews)
Ratings snapshot: Google Maps, August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us. Confirm the contractor's applicable Tennessee electrical and local licensing before signing.
Get a Tennessee estimate built around your load
Complete four short questions for a preliminary estimate. We are a solar installer and we also partner with other solar companies. Read our disclosures.
What does your monthly electric bill look like?
Tennessee average is $143 per month (EIA, 2024).