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Key Points
The average solar system in Tennessee costs $3.58 per watt, or $39,380 for the average 11 kW system.
Tennessee residents can benefit from the federal tax credit, which recovers 30% of your solar installation cost.
SaveOnEnergy’s solar resources can help you learn more about the solar installation process and find a trusted Tennessee solar installer.
Solar power in Tennessee
Tennessee is experiencing a significant growth in green energy after a relatively slow start. It currently ranks in the bottom half of states for solar electricity generation, but it’s projected to nearly double the total amount of solar power installed over the next five years.
SaveOnEnergy can help you learn more about investing in solar power in Tennessee. Read on to understand more about the cost of solar panels in Tennessee, solar companies in the state, and Tennessee solar incentives to make your investment more affordable.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
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The typical cost of a residential solar system in the U.S. is about $31,558, according to the Lawrence Berkeley National Laboratory. In Tennessee, the typical household requires an 11 kilowatt (kW) system, according to Find Energy. The total cost for this system size is $39,380 before tax credits and other incentives. The following table highlights the differences between U.S. average solar costs and Tennessee averages.
System size
Price per watt
Installed cost
Tennessee
11 kW
$3.58
$39,380
U.S.
8.6 kW
$3.67
$31,558
How does Tennessee solar save you money?
Over time, you can save money on your electricity bill when you invest in solar panels. The length of time it takes for your solar panel system to pay for itself through savings is known as the payback period. Based on theaverage Tennessee monthly electricity bill of $145.98, the payback period for an 11 kW solar panel system would be around 15 years.
Solar is customizable, and every household requires a different system size. This results in a wide range of potential total costs. The following table displays a range of system sizes, costs, and estimated panel count at the Tennessee price per watt of $3.58.
System size (kW)
Total cost
Number of solar panels*
5 kW
$17,900
13–17
7 kW
$25,060
18–23
9 kW
$32,220
23–30
11 kW
$39,380
28–37
13 kW
$46,540
33–43
Tennessee solar panel incentives or rebates
The upfront cost of solar panels in Tennessee may seem daunting. However, you can save thousands of dollars on your investment by taking advantage of various federal and state solar incentives.
The U.S. government offers a 30% federal tax credit to help homeowners cover solar panel system costs. Under this program, people who add solar panels to their primary or secondary residence can claim the credit on their federal taxes. The tax credit also applies to RVs and rental homes — as long as you live there at least part-time. The credit is set to begin decreasing in 2032 before expiring in 2035, unless Congress renews it.
Program
Description
Net metering
Tennessee does not have a statewide net metering program. However, the Tennessee Valley Authority (TVA) utility has a Dispersed Power Program that gives you credit for excess energy.
Sales tax exemption
All solar panel purchases in Tennessee are exempt from sales tax.
Why choose Tennessee solar power?
Switching to solar offers many benefits, including reduced utility costs, energy independence, and fewer carbon emissions.
Lower energy costs
When you use solar energyto power your home in Tennessee, you can rely less on electricity from your utility company, saving you thousands per year. In addition, having a solar system increases the resale value of your home.
Increase energy independence
A residential solar panel system allows you to break free from the public electricity grid and increase your energy independence. As a result, you’ll be able to retain your power supply during periods of high demand on the grid. You can also add a solar battery to store excess electricity for when the sun goes down or the power goes out.
Go green
Using a renewable energy source such as solar can reduce your home’s carbon footprint. Generating solar energy doesn’t emit carbon into the atmosphere, making it less harmful to the environment than fossil fuels.
Should I buy or lease my solar panels?
Once you’ve made the choice to go solar, you’ll have to decide whether to buy or lease your solar panels. Both have unique benefits, but ultimately, buying yoursolar panels gives you the most long-term financial advantages. On the other hand, leasing still offers the advantages of solar energy without the upfront costs or maintenance expenses.
Learn more about the benefits and drawbacks of different ways to access solar energy, depending on your energy usage, goals, and budget.
Payment method
Benefits
Drawbacks
Cash purchase
Largest amount of savings over time, solar system ownership, eligible for incentives, electricity bill savings
No upfront costs, power home with clean energy, electricity bill savings
No ownership
Tennessee solar panel companies
As solar power adoption grows in Tennessee, more solar panel companies are emerging across the state. If you want to make an informed choice, it’s important to understand the ins and outs of the industry — and SaveOnEnergy is here to help. We partner with top-tier solar companies to bring you a variety of options. Connect with a solar advisor by calling the number on your screen or filling out our solar estimator.
Solar installer
Year founded
Financing options
Warranty terms
2011
Cash purchase or solar loan
25-year manufacturer warranty and production guarantee
2018
Cash purchase or solar loan
30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
1985
Cash purchase, solar loan, or lease
25-year full system warranty
What to look for in a solar contractor
There are several important considerations to make when looking for a reliable solar installer. Trusted contractors should provide sturdy warranties for their products, licensed or certified employees, and strong customer reviews. You may also want to base your decision on the services offered by the contractor. For example, some contractors may have attractive financing options or the ability to install a battery with your solar panels. Consider reading customer reviews to determine if the installer has quality service experience.
Beware of free solar panels in Tennessee scam
You will not find free solar panels in Tennessee, because they don’t exist. You may receive offers from providers trying to lure you into loan agreements by promising free panels. Alternatively, fraudsters may use this claim to persuade you to share sensitive information. The best way to guard against these scams is to inform yourself about the market rate for solar panel installation so you can judge whether or not an offer seems legitimate.
Important solar installation factors to consider
Solar panels are a smart way to upgrade your home. However, here are a few things to keep in mind before deciding to switch to solar:
The condition of your roof: Your roof should be in good shape to maximize your investment. Optimal solar production occurs with a south-facing roof angled at 15 to 40 degrees.
How much sunlight you receive: Solar panels work best in places that receive ample sunshine, so it’s important to keep your state’s climate in mind before purchasing. Shade from trees and other structures may impact the direct sunlight you receive.
Neighborhood or homeowner association (HOA) rules: In some areas, you may need approval from your community association or HOA to install solar panels. The company that installs your panels can help you navigate these rules and approvals.
A typical residential solar panel system in Tennessee is 11 kW and costs $3.58 per watt. Installing a system of this size comes in on average around $39,380. This price doesn’t include the federal tax credit and other potential savings from incentives.
Yes. A typical payback period for an 11 kW system in Tennessee is 15 years.The lifespan of your solar panels can range from 25 to 30 years, so you’ll be able to rely on power and savings from your solar panels for well over a decade.
You can compare various solar panel installers online before making your decision. At SaveOnEnergy, we provide dependable solar resources to inform you about the solar market. You can talk to one of our solar experts to obtain additional advice by calling the number on your screen.
Solar power is a renewable energy source. No carbon dioxide is produced from solar energy generation. CO2 emissions from traditional energy sources like coal and natural gas contribute to temperature increases and may harm the local environment. Going solar can prevent adding to the detrimental effects of climate change.
