Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.Prices from the September 2026 Cost Index. TVA price as of October 2026. Updated October 14, 2026.
A typical Tennessee home system is 9.11 kW and costs about $28,970 in cash at $3.18 per watt. In our two worked cases it takes 32.3 to 45.1 years to pay for itself. Most of the state has no net metering: the power you send out is sold to TVA for about 3.3¢ per kWh, a quarter of the 13.56¢ average price you pay.
Free for you. Solar providers pay us when you ask for quotes. How we make money
Almost every Tennessee home buys power from a local company that TVA supplies. That company connects your system. TVA buys the power you do not use, under its Dispersed Power Production program.
Per kWh, December 2025 to October 2026. Your full price averages 13.56¢.
The length is fixed. The price is not: it changes every month.
Middle Tennessee Electric says the TVA contract can take this long, so start before installation ends.
The older TVA program has taken no new applicants since December 31, 2019.
Each kWh you use at home as it is made saves your full price. Each kWh sent to TVA earns about 3.3¢. So the share you use at home sets the payback, and neither case pays back within 25 years.
| Share used at home | Year-one savings | After upkeep | Simple payback |
|---|---|---|---|
| 60%, someone home during the day | $1,170 | $897 | 32.3 years |
| 40%, our planning default | $916 | $643 | 45.1 years |
Swipe the table sideways to see every column.
These cases fit a power company where extra power goes to TVA and no solar-only charge applies. MLGW homes also pay $14.40 a month, $172.80 a year, so their payback runs longer. NES credits its own rate, and Kingsport Power uses net metering, so neither fits these cases.
The name at the top of your electric bill decides what your extra solar power earns and what you pay to connect.
NESolar Savings credits extra power on your bill: 3.069¢ June to September, 3.197¢ December to March, 3.244¢ in other months, plus TVA’s fuel cost that month. Open until the program reaches 10 MW in total.
Next: apply at least 60 days before the system starts, and get the current rate in writing.
No bill credit for extra power: it earns money only under a TVA contract. The Electric Service Availability charge comes to $172.80 a year, and MLGW says it can change.
Next: send MLGW’s application before you buy equipment. A repeat acceptance test costs $200.
The one Tennessee utility TVA does not supply. Each kWh you send out cancels one you buy, for home systems up to 10 kW, or 15 kW with a licensed electric vehicle. Extra kWh roll forward but are never paid in cash.
Next: ask for the current Tariff N.M.S. sheet. Expect a $50 inverter inspection and proof of $100,000 liability insurance.
Power company | Bill credit for extra power | Fees for solar homes |
|---|---|---|
Middle Tennessee Electric | None; sell to TVA | $0 for the application, the meter exchange and extra monthly billing |
Volunteer Energy Cooperative | None; sell to TVA | $750 once: $250 application plus $500 interconnection |
Other TVA power companies | None found | Each sets its own; ask before you sign |
Swipe the table sideways to see every column.
Net metering means each kWh you send out cancels one kWh you buy. Power companies supplied by TVA buy their power from TVA, and their supply contracts do not let them buy power from anyone else, so they do not offer it. MLGW says extra power reaches its grid “without financial benefit” unless you also sign with TVA.
Kingsport Power’s net metering is open while all its net metered systems stay within 1% of the most power its Tennessee customers use at one moment. We read its tariff as filed with the state regulator in 2022 (effective August 8, 2022), not on the company’s own site.
The September 2026 benchmark is $0.29 above the $2.89 US average, 48th lowest of 51. These are modeled cash prices, not quotes we collected.
| Size (kW DC) | Cash price | Power made a year |
|---|---|---|
| 5 kW | $15,900 | 6,790 kWh |
| 8 kW | $25,440 | 10,864 kWh |
| 9.11 kW (typical) | $28,970 | 12,371 kWh |
| 10 kW | $31,800 | 13,580 kWh |
Tennessee has no solar rebate and, with no individual income tax, no state tax credit. What it offers runs through one certificate from the Tennessee Department of Environment and Conservation (TDEC).
On equipment that makes or stores power in a certified system. On $10,000 of equipment, the 7% state tax alone is $700.
Certified solar valued at no more than 12.5% of installed cost when first appraised: $3,621 at most on $28,970. Ask your county assessor.
Tennessee taxes no individual income. The Hall tax on interest and dividends ended for tax periods from January 1, 2021.
Not for a system you own placed in service after December 31, 2025.
| Step | Who does it | When |
|---|---|---|
| Apply to your power company to connect | You or your installer | Before you buy equipment; at NES, at least 60 days before the system starts |
| Sign the TVA contract, or NESolar Savings in Nashville | You sign | Start early: MTE says the TVA contract can take 2 to 3 months |
| Email Form CN-1386 to TDEC | You or your installer; agree in writing | With your connection agreement or installer contract. Tax already paid can be refunded |
| Send the TDEC certificate to the Comptroller | You | By March 1 of the first year you claim the lower value |
Swipe the table sideways to see every column.
Tennessee incentives guideWhat $0-down solar means in Tennessee
Three companies on our Tennessee list, A to Z, not ranked. Facts from their own sites and the Tennessee contractor registry, read October 13 and 14, 2026.
None of these three companies buys homeowner leads from EcoGen America, and none carries our Verified badge. Look up any Tennessee contractor license yourself on the state’s Verify site. How we make money.
Ask each installer which month’s TVA price its savings use, and how many kWh a year it expects you to sell.
Run the TVA math for your homeEcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us. This is not an application to TVA’s Dispersed Power Production program. Privacy policy
CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.
About Dean
Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.
About TrevorEditorial standardsCost Index methodologyHow we check installers