Solar Panels in Tennessee | 2022 Cost and Incentives | SaveOnEnergy®

Tennessee Solar Panels: Pricing and Incentives

How much do solar panels cost in Tennessee?

home with solar panels on the roof

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Solar power in Tennessee

Tennessee has slowly but surely embraced green energy over the years, making it a great place to invest in solar power. It currently ranks in the bottom half of states for solar electricity generation, but it’s projected to climb to the top 20 within the next five years.

If you’ve been thinking about investing in solar panels in Tennessee, SaveOnEnergy can help you understand what’s involved, including the costs and benefits of going solar. Keep reading to see if Tennessee solar is right for you.

Tennessee solar panel cost

Several factors influence the cost of solar panels in Tennessee, such as the system size, the components (like high-efficiency panels or solar batteries), and local installation and permit costs. 

The median price of a residential solar system in the U.S. is $24,742. You can reduce these costs by taking advantage of Tennessee solar incentives, like the federal tax credit described below. Once your solar panels are installed, you can expect them to pay for themselves within six to nine years.

Get an exact quote from our solar advisors

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Tennessee solar panel incentives or rebates

The upfront cost of solar panels in Tennessee may seem daunting, but the good news is that you can save some money benefiting from incentives offered by the federal and state governments.

The U.S. government offers a 26% 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 in 2022 can claim this credit on their federal taxes. This tax credit also applies to RVs and rental homes — as long as you live there at least part-time. Right now, the credit is set to decrease to 22% in 2023 and expire in 2024 (unless Congress renews it).

Tennessee also allows homeowners to skip the sales tax on solar panel purchases. Unfortunately, net metering programs do not exist for homeowners to sell their excess solar back to the grid. The Tennessee Valley Authority, the country’s largest federally owned utility, offered net metering in the past, but the program ended in 2019.

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 to power your home in Tennessee, you can rely less on electricity from your utility company — which can save you more than $1,000 per year. Plus, if you ever decide to move, having a solar system increases the resale value of your home.

Establish energy independence

A residential solar system allows you to break free from the public electricity grid and become energy independent. As a result, you’ll be able to retain your power supply during periods of high demand on the grid. Also, if you have a solar battery, you can store excess electricity to use when the power goes out.

Go green

Using a renewable energy source such as solar will 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 your solar panels gives you the most long-term financial advantages.

First, you need to purchase your panels to qualify for the federal tax credit. If you lease or sign a solar power purchase agreement (PPA), you won’t be eligible for the credit. Also, solar panels can increase the value of your home by $15,000, putting more money in your pocket when you choose to sell.

On the other hand, leasing still offers most of the benefits of solar energy without the upfront costs or maintenance expenses. It’s also a great option if you rent your home. Solar PPAs are another alternative similar to leasing, but with a few key differences. Under these agreements, you allow a developer to install solar panels on your property and purchase the energy generated from them.

Finally, if you rent your home or live in an apartment, you might be interested in joining a community solar project. With these programs, you can share solar panels with your neighbors and get a portion of the output without buying the panels or installing them on your property.

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. SaveOnEnergy partners with top-tier solar companies to bring you variety of options. Connect with a solar advisor by calling the number on your screen or enter your information here.

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.

Solar power FAQs

How much would solar cost in Tennessee? Expand / Collapse Toggle

The median cost of a solar system in the U.S. is $24,742. The exact costs can be higher or lower depending on the system size, the components you choose for it, installation prices, and Tennessee solar incentives.

Is solar power a good investment in Tennessee? Expand / Collapse Toggle

Solar can be an excellent investment in Tennessee, providing financial savings and cutting carbon emissions. To decide if solar is a fit for your household, you should consider factors like your typical energy usage and monthly energy costs.

How much could I save by investing in solar? Expand / Collapse Toggle

Electricity rates are increasing in Tennessee, with the average monthly bill totaling $139.46. By switching to solar, you could cut out these bills and save more than $1,600 each year. 

Where can I find a good solar panel installer in Tennessee? Expand / Collapse Toggle

With SaveOnEnergy, you can learn about solar panels in Tennessee and connect with a trusted installer. Browse our library of solar resources to learn more, or enter your details in the form below.

How does solar power help the environment? Expand / Collapse Toggle

Solar is a clean and renewable energy source. It doesn’t produce carbon dioxide or other greenhouse gasses that pollute the atmosphere and contribute to global warming. It’s important to note that solar doesn’t save energy — it’s just a way to make energy consumption cleaner. By switching to solar, you’re helping slow down climate change and investing in a healthier planet.