Solar in Tennessee costs about $3.04 per watt, so the typical 10.2 kW system runs about $31,008 before incentives. TVA, not the state, sets what your surplus earns: about 3.6¢ per kWh on the September 2025 schedule, against the 13.48¢ you pay, so the power you use yourself carries the payback.
Quote against the current TVA schedule
TVA posts its export price every month, so an old number can sink a Tennessee quote. Enter your ZIP code and we will connect you with installers who quote against the current TVA schedule.
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3.6¢ out, 13.48¢ in: the TVA price list behind every Tennessee roof
Tennessee does not set the rules for your rooftop solar. The Tennessee Valley Authority does, and it posts the price your surplus earns every month. You buy at 13.48¢ and sell at about 3.6¢.
What a Tennessee kilowatt-hour is worth, by where it goes
What you pay to buy power back is roughly four times what an exported kilowatt-hour earns. For the picture beyond Tennessee, start with our solar panel costs nationwide.
This is a monthly reading, not a tariffTVA prices post monthly rather than being fixed in a tariff, so the figures above are a recent reading and not a guarantee. Ask for the current schedule before you sign, and be skeptical of any quote that shows a Tennessee export rate as a settled long-term number.
No state statute, no state regulator: who writes Tennessee’s solar rules
There is no Tennessee net metering law, and the Public Utility Commission lacks authority over TVA. So the usual state-level machinery is simply not there, and there is no state commission to appeal to.
Tennessee and South Dakota are the only two states in the country without a net-metering-style program.
A PURPA-based arrangement on five-year agreements, reached through your local power company rather than directly.
TVA Dispersed Power ProductionNo new enrollment since 2019. A seller still offering it is working from old material.
NES, MLGW, MTE or KUB: the third party in every Tennessee solar deal
Tennessee is served mostly by municipal utilities and cooperatives that buy from TVA and resell to you. Each one administers the TVA arrangement locally.
Share of Tennessee households served.
Share of Tennessee households served.
Share of Tennessee households served.
Share of Tennessee households served.
Their process sets your switch-on dateYour agreement runs through your local power company. Its process, timelines and interconnection requirements govern how quickly you get switched on.
Local fees are not in any statewide tableSome local power companies apply their own distributed generation fees or riders, authorized by TVA. Two houses either side of a service boundary can face genuinely different economics.
What $3.04 a watt buys when the typical Tennessee system is 10.2 kW
Tennessee households use about 1,154 kWh a month, for an average bill of $155.56, so systems here are large. At $3.04 per watt (as of March 1, 2026), tied with Colorado for 36th cheapest, the typical install is 10.2 kW, one of the largest typical systems in the country.
Gross cost at the $3.04 benchmark. No federal residential credit applies to owner-purchased systems completed after 2025.
Why 10.2 kW fits a Tennessee homeNashville-class sun gives a modest 1,358 kWh per kW a year, so 10.2 kW makes roughly 13,852 kWh. That is about what a household using 1,154 kWh a month consumes in a year.
16.6 years if you use it all: what exporting to TVA does to a Tennessee payback
Used as it is generated, 13,852 kWh a year is worth about $1,867 at the 13.48¢ statewide average. That gives a 16.6-year simple payback on $31,008. Send a meaningful share to TVA at 3.6¢ instead and the figure gets worse quickly. That is the whole design lesson here.
Check your own bill before trusting any paybackThe model runs on the statewide average, which is ranking context. NES, MLGW, MTE, KUB and every other local power company charge their own residential rates, so run the math on your own bill.
Four Tennessee quotes and plans the four-to-one gap works against
Walk away, or at least slow down, if one of these fits:
- Any quote mentioning net metering or Green Power Providers. Tennessee has no net metering, and Green Power Providers closed to new enrollment in 2019. Both are reliable signs a seller is working from old material.
- Oversized arrays. At a four-to-one gap between what you pay and what you earn, every kilowatt-hour beyond your own use is close to a donation.
- You have not asked your local power company about DG fees. These are set locally, are not in any statewide table, and can change the arithmetic.
- Anyone treating the TVA rate as fixed. Prices post monthly. A five-year agreement signed against one month’s number carries real exposure.
Size to what your house actually uses
The gap between 13.48¢ bought and 3.6¢ sold decides this one in Tennessee. Enter your ZIP code and we will size to what you actually use.
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Tennessee solar reading beyond the TVA schedule
Frequently asked questions
Does Tennessee have net metering?
No. There is no state net metering statute and the Public Utility Commission has no jurisdiction over the Tennessee Valley Authority, which sets the terms instead. Tennessee and South Dakota are the only two states in the country without a net-metering-style program.
What does TVA pay for home solar in Tennessee?
Through the Dispersed Power Production program, the September 2025 schedule was $36.35 per megawatt-hour flat, about 3.6¢ per kilowatt-hour, with time-block pricing between $32.31 and $42.73 per megawatt-hour. Prices post monthly rather than being fixed in a tariff, so confirm the current figure before signing a five-year agreement.
How much do solar panels cost in Tennessee in 2026?
About $3.04 per watt installed, tied with Colorado for 36th cheapest in the country as of March 1, 2026. Tennessee households are among the heaviest power users in the country at 1,154 kWh a month, so the typical system is large at 10.2 kW, roughly $31,008 before incentives.
What is the solar payback period in Tennessee?
About 16.6 years for a household consuming what it generates at the 13.48¢ retail rate. Exporting a meaningful share worsens that quickly, because TVA pays roughly a quarter of what you pay to buy power back. Self-consumption, not system size, is what moves the number here.
Is Green Power Providers still available in Tennessee?
No. TVA closed the program to new enrollment after 2019, and any company still offering it is working from outdated material. The current route is Dispersed Power Production, arranged through your local power company on a five-year agreement.
How we calculate these costs
Cost figures use Tennessee’s entry in the EcoGen Solar Cost Index (v2 method), $3.04 per watt as of March 1, 2026. Payback is modeled with no federal residential credit for owner-purchased systems, no net metering, rate growth at the state 5-year average of 2.7%, 0.5% yearly panel degradation and a 25-year horizon. The 16.6-year figure is simple payback with every kilowatt-hour used at home. TVA Dispersed Power Production prices are quoted from the September 2025 schedule and post monthly, so they are a reading rather than a fixed rate.
Sources (5)
- Tennessee Valley Authority (TVA), Dispersed Power Production Program, September 2025 price schedule (accessed June 10, 2026): tva.com
- U.S. EIA, Electric Power Monthly, Table 5.6.A, March 2026 edition (accessed June 10, 2026): eia.gov
- U.S. EIA, Form EIA-861 Annual Electric Power Industry Report, 2024: NES, MLGW, Middle Tennessee Electric and KUB customer counts (accessed June 10, 2026): eia.gov
- U.S. Census Bureau, American Community Survey, 2024 (accessed June 11, 2026): census.gov
- IRS, One, Big, Beautiful Bill Provisions, Public Law 119-21 (accessed August 15, 2026): irs.gov
