Tennessee solar panels: local pricing and installation data

Homeowners save an average of 20% when they compare solar panel installation quotes on EnergySage.

Updated 6/11/2022

Solar Data Explorer:

Out-of-pocket cost  
Net 20-year savings  
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Solar installation costs do not include the 26% Federal Investment Tax Credit or local incentives.

Save money by installing solar panels in TN.

Solar in Tennessee

Simple map of Tennessee with a map pin showing a roof with installed solar panels

Solar is growing in Tennessee, both in small-scale residential systems and larger utility-scale arrays. As prices for solar continue to fall and the economics of solar keep getting better, residents in the Volunteer State will only continue to be able to take advantage of the benefits of solar energy.

How much do solar panels cost in Tennessee?

Tennessee's average cost of a solar panel installation ranges from $12,792 to $17,308. On a cost per watt ($/W) basis, a solar panel installation in Tennessee ranges in price from $2.56 to $3.46.

Another calculation that potential solar buyers have to consider is the solar payback period. This term tells us as at what time you will recover your initial investment through electricity savings from your solar system. For Tennessee, the average solar payback period is 13.24 years.

Another choice that solar shoppers have to face is how to pay for a solar panel system. Fortunately, there are many financial options available to ensure the customer can afford installations. Cash purchases are one common method to pay for solar and often lead to the most long-term value for your money. If an upfront purchase isn’t right for you, solar loans and solar lease/PPAs are available to help finance a solar energy system.

See the cost of solar in TN cities and towns

$12,792 – $17,308

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What solar panels should I install in Tennessee?

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For property owners, you now can customize your solar panels, inverters, racking systems, and batteries, as well as the general aesthetic of the installation. This customizability has made it important for solar consumers to understand these various factors. For example, the best solar panels available may have premium efficiencies and warranties, but will typically be more costly. However, depending on the size of the installation, you’ll need to determine whether high-efficiency solar panels that can produce more electricity are worthwhile. Also, your appetite for risk can help determine which solar warranties best fit your needs. These are just a few of the many factors to consider when selecting solar panel equipment.

How much energy can I get from solar in Tennessee?

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Aside from the power output of the solar equipment you choose to install, the amount of energy you generate with solar panels in Arizona is directly related to the amount of sunlight that hits your panels. Arizona is one of the sunniest states in the U.S.; therefore, a solar panel installation in the state will likely produce more energy annually than a system of the same size installed elsewhere, such as in the Northeast.

There are additional factors that determine how much solar electricity you can produce. These include shading, panel orientation, and panel angle, which are all used to calculate your total production estimate. a prediction of how much energy your solar installation will produce over time. This evaluation offers a clear estimate of how much energy your solar installation will produce. You can see how much solar panels can save you based on factors like geographic location and shading by using the EnergySage Solar Calculator – the calculator will take into account site-specific conditions like shade and geography.

Tennessee solar incentives

Solar incentives in Tennessee can help you reduce the overall price of going solar. Learn more about why solar panels are such a great investment in Tennessee.

Learn about solar incentives in TN

What rebates and incentives are there in Tennessee for solar?

The federal Investment Tax Credit has been one of the most reliable and impactful incentives for solar across the U.S. This solar incentive allows you to deduct 26 percent of the total system cost from your federal taxes. For example, a solar energy system installation that costs $15,000 out of pocket will qualify for a tax deduction of $3,900. This advantageous incentive lasts until the end of 2022 - the tax credit amount steps down to 22 percent for 2023. The federal ITC is eliminated for residential solar installations after 2023, but commercial solar energy system owners can still deduct 10 percent of a commercial solar system cost from their taxes beyond 2023.

Outside of the federal ITC, Tennessee residents are able to take advantage of net metering, which allows you to sell any excess solar electricity you generate back to the grid in exchange for credits. To learn more about the financial incentives available for solar installations in TN, check out the complete overview of the state’s best solar incentives.

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