Tennessee Solar Incentives (2026)
Tennessee homeowners qualify for the 30% federal solar tax credit. Net metering policy: No Net Metering. Average payback period: 11.5 years.
30%
Federal ITC
None
State Tax Credit
None
State Rebate
No Net Metering
Net Metering
Federal Solar Incentives (Available in Tennessee)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of system cost
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
Expires: 2034-12-31
Tennessee does not currently have additional state-specific solar incentives beyond the federal 30% ITC. However, the no net meteringpolicy still allows homeowners to earn credits for excess solar generation.
Tennessee Solar Overview
Peak Sun Hours
4.3 hrs/day
Avg Payback Period
11.5 years
20-Year Savings
$26,400
Electricity Rate
12.91¢/kWh
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Data verified March 2026 · Source: DSIRE, NREL, EIA