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Tennessee Solar Incentives: Get Paid to Go Solar

Q: How Much Does It Cost to Go Solar in Tennessee?

The cost of going solar in Tennessee typically ranges from $15,000 to $21,000 for a standard 6-kilowatt (kW) system, before applying any federal or state incentives. After applying the 30% federal Solar Investment Tax Credit (ITC), the cost can be reduced to $10,500 to $14,700 . Prices can vary depending on the size of the system, type of panels, and local installation costs.

Q: What is the Solar Capacity in Tennessee?

Tennessee has a solar capacity of over 500 megawatts (MW) , with both residential and large-scale utility projects contributing to this figure. While Tennessee's capacity is growing, it is still behind many states with more aggressive solar policies and infrastructure. However, the state’s solar energy market is gradually expanding.

By Stephen Kelly | December 11, 2024 | 7 min read

Written by Stephen Kelly
Solar Energy Expert

Updated December 13, 2024 | 7 min read

Tennessee is a state that is known for its beautiful landscapes and friendly people, but it is also a state that is becoming increasingly recognized for its commitment to renewable energy.

One of the most popular forms of renewable energy in Tennessee is solar power, and there are several incentives available for residents and businesses that are looking to install solar panels on their property.

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Tennessee EnergyRight Solutions Program

The first incentive that is available to residents of Tennessee is the EnergyRight Solutions program. This program is run by the Tennessee Valley Authority (TVA) and offers a variety of incentives to help residents and businesses reduce their energy consumption and costs.

One of the incentives that is available through this program is the solar hot water heater rebate. This rebate is available to residents and businesses that install a solar hot water heater on their property. The amount of the rebate will depend on the size of the system and the type of system that is installed.

TN Solar Power Rebate Incentive

Another incentive that is available to residents and businesses in Tennessee is the solar power rebate. This rebate is also available through the EnergyRight Solutions program and is designed to help residents and businesses offset the costs of installing a solar power system on their property. The amount of the rebate will depend on the size of the system and the type of system that is installed.

Solar Investment Tax Credit (ITC)

In addition to the EnergyRight Solutions program, there are also several other incentives available to residents and businesses in Tennessee that are looking to install solar panels on their property. One of these incentives is the federal solar tax credit.

This credit is available to residents and businesses that install solar panels on their property and is equal to 30% of the cost of the system. This credit can be used to offset the costs of the installation and can be claimed on your federal tax return.

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State Solar Sales Tax Exemption

Another incentive that is available to residents and businesses in Tennessee is the state sales tax exemption. This exemption is available to residents and businesses that purchase solar panels and related equipment for use on their property. This exemption can be used to offset the costs of the purchase and can be claimed on your state sales tax return.

Other Local Rebates & Incentives In Tennessee

Finally, there are several utility companies in Tennessee that offer rebates and incentives to residents and businesses that install solar panels on their property. These rebates and incentives can be used to offset the costs of the installation and can be claimed on your utility bill.

Get Started With Solar Energy In Tennessee Today!

In conclusion, Tennessee is a state that is committed to renewable energy and offers a variety of incentives to residents and businesses that are looking to install solar panels on their property. These incentives include the EnergyRight Solutions program, the federal solar tax credit, the state sales tax exemption, and utility company rebates and incentives.

These incentives can help offset the costs of the installation and make it more affordable for residents and businesses to switch to renewable energy. If you are considering installing solar panels on your property in Tennessee, be sure to research all of the incentives that are available to you.

Is it Worth Going Solar in Tennessee?

Yes, going solar in Tennessee is generally worth it for many homeowners. The state has ample sunlight, which makes it a good location for solar energy production. Additionally, with rising electricity rates, installing solar panels can result in significant long-term savings on energy bills. Federal incentives, such as the Solar Investment Tax Credit (ITC), can reduce installation costs by 30%. Tennessee also offers net metering, allowing homeowners to sell excess energy back to the grid, further boosting savings.

Is Tennessee a Solar-Friendly State?

Tennessee is moderately solar-friendly. While the state does not offer as many incentives as some of the top solar states, it does have net metering policies, making it easier for homeowners to get compensated for excess energy production. Additionally, Tennessee offers access to federal tax credits, and its solar capacity is steadily growing, making it an increasingly favorable environment for solar energy adoption.

How Much Does It Cost to Go Solar in Tennessee?

What is the Solar Capacity in Tennessee?

Does Tennessee Have Tax Credits?

Tennessee does not offer its own state tax credits for solar energy systems, but homeowners can still take advantage of the federal Solar Investment Tax Credit (ITC), which allows for a 30% deduction of the total solar installation cost from federal taxes. Additionally, Tennessee homeowners can benefit from net metering policies and certain local utility rebates that may be available depending on the region.

Is Tennessee a zero tax state?

No, Tennessee is not a completely zero tax state. However, it is one of the few states that does not have a state income tax on wages and salaries. Tennessee does, however, have a sales tax, which is one of the highest in the U.S., and it also levies property taxes.

In the past, Tennessee had a tax on interest and dividend income (the Hall Income Tax), but that was fully repealed as of 2021, making Tennessee more attractive for residents looking to avoid income taxes on their earnings.

While the state does not impose income taxes, residents are still responsible for sales tax (up to 9.75% depending on localities) and property tax.

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Stephen Kelly

Stephen Kelly, luminary in the solar industry for over 10 years, stands as a respected author and frequent speaker at clean energy conferences throughout the United States. His commitment to America on clean energy positions him as a trusted authority driving positive change.