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
| Item | Amount |
|---|---|
| 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.
Solar Potential by ZIP Code in Tennessee
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 38101 | Brownsville | 4.5 hrs | $1,046 | 12.1 yrs |
| 37501 | Memphis | 4.5 hrs | $1,046 | 12.1 yrs |
| 38301 | Jackson | 4.4 hrs | $1,022 | 12.3 yrs |
| 38001 | Alamo | 4.4 hrs | $1,022 | 12.3 yrs |
| 38201 | McKenzie | 4.4 hrs | $1,022 | 12.3 yrs |
| 37201 | Nashville | 4.3 hrs | $999 | 12.6 yrs |
| 37301 | Athens | 4.3 hrs | $999 | 12.6 yrs |
| 37401 | Chattanooga | 4.3 hrs | $999 | 12.6 yrs |
| 38401 | Columbia | 4.3 hrs | $999 | 12.6 yrs |
| 37001 | Adams | 4.3 hrs | $999 | 12.6 yrs |
| 37601 | Johnson City | 4.2 hrs | $976 | 12.9 yrs |
| 37701 | Alcoa | 4.2 hrs | $976 | 12.9 yrs |
| 37801 | Maryville | 4.2 hrs | $976 | 12.9 yrs |
| 37901 | Knoxville | 4.2 hrs | $976 | 12.9 yrs |
| 38501 | Cookeville | 4.2 hrs | $976 | 12.9 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.
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Data verified March 2026 · Source: NREL, DSIRE, EIA