SunPowerPeek

TennesseeSolar Panel Costs & Savings

Tennessee averages 4.3 hrs of peak sun per day with an average payback period of 11.5 years. Homeowners can save $26,400 over 20 years.

Peak Sun Hours

4.3 hrs

per day

6kW System Cost

$18,000

before incentives

Payback Period

11.5 yrs

average

20-Year Savings

$26,400

estimated

Solar Cost Breakdown in Tennessee

ItemAmount
6kW System Cost ($3/W)$18,000
Federal Tax Credit (30%)-$5,400
Net Cost$12,600

Net Metering

No Net Metering

Electricity Rate

12.91¢/kWh

Avg Monthly Bill

$142/mo

Solar Incentives in Tennessee

Federal Solar Investment Tax Credit (ITC)

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.

30% of system cost
tax creditExpires: 2034-12-31

View all state solar incentives

Solar Potential by ZIP Code in Tennessee

ZIPCitySun HoursAnnual SavingsPayback
38101Brownsville4.5 hrs$1,04612.1 yrs
37501Memphis4.5 hrs$1,04612.1 yrs
38301Jackson4.4 hrs$1,02212.3 yrs
38001Alamo4.4 hrs$1,02212.3 yrs
38201McKenzie4.4 hrs$1,02212.3 yrs
37201Nashville4.3 hrs$99912.6 yrs
37301Athens4.3 hrs$99912.6 yrs
37401Chattanooga4.3 hrs$99912.6 yrs
38401Columbia4.3 hrs$99912.6 yrs
37001Adams4.3 hrs$99912.6 yrs
37601Johnson City4.2 hrs$97612.9 yrs
37701Alcoa4.2 hrs$97612.9 yrs
37801Maryville4.2 hrs$97612.9 yrs
37901Knoxville4.2 hrs$97612.9 yrs
38501Cookeville4.2 hrs$97612.9 yrs

Compare With Other States

More Data for Tennessee

Frequently Asked Questions

How much do solar panels cost in Tennessee?

A typical 6kW solar system in Tennessee costs approximately $18,000 before incentives. After the 30% federal tax credit ($5,400), the net cost is approximately $12,600.

How long does solar take to pay for itself in Tennessee?

The average solar payback period in Tennessee is 11.5 years, slower than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.

Does Tennessee have net metering?

Tennessee has no net metering. Net metering is not currently available statewide, which may affect solar savings calculations.

How much sun does Tennessee get for solar?

Tennessee averages 4.3 peak sun hours per day, which is 0.2 hours below the national average. A 6kW system produces approximately 9,417 kWh per year.

Was this data helpful?

Data verified March 2026 · Source: NREL, DSIRE, EIA