Tennessee solar rebates and incentives: 2026 guide

Tennessee doesn't offer the strongest solar incentive programs out there. But that doesn't mean solar isn't worth it—especially if your electric bills are eating up a big chunk of your monthly budget.

Solar's real value isn't about rebates. It's about taking control of your electricity costs for the next 25-30 years. As utility rates continue their steady climb, locking in lower energy costs now can deliver substantial savings over time. Even without robust state programs, many Tennessee homeowners with decent sun exposure and moderate to high electric bills find that solar still pays for itself. Here's how you may be able to lower your solar costs in Tennessee—and whether it makes sense for your home.

Unfortunately, Tennessee doesn't offer many incentives for solar. But if your electric bills are high, going solar can still make sense.

Tennessee’s solar property tax exemption is called the Green Energy Property Tax Assessment. It gives you a tax break by allowing you to pay property taxes on just 12.5% of the value added to your property by solar. So even though your property value has gone up, your taxes will only go up very slightly.

Although Tennessee has a solar sales tax exemption for businesses, homeowners can’t claim it. 

Nearly all of the utility companies in Tennessee are tied to the Tennessee Valley Authority (TVA), and unfortunately none of them have a net metering policy. This means that you won’t get much financial credit for sending extra solar power back to the grid. 

TVA utilities do offer the Dispersed Power Production Program to some customers, but the terms of the program are not very favorable—typically just a few cents per kWh sent to the grid, which is a fraction of the retail rate you pay for buying that power back at a different time of day.

However, if you install a solar battery alongside your solar panels, it’s easier to get credit for your solar power production—more on that below.

Tennessee doesn't offer any state-specific battery incentives.

Since utility companies in Tennessee generally do not offer net metering, a solar battery is one of the best ways to get your money’s worth from a rooftop solar system. 

Instead of letting the utility company take your excess solar energy at a steep discount through the Dispersed Powder Production Program, you can use your battery to hoard that energy when the sun is shining, then use it as needed at another time of day. And of course, it also works as a backup power source for your home during blackouts.