SunSavvy

Solar Panel Cost in Tennessee (2026)

In Tennessee, residential electricity averages about 12.5¢/kWh with roughly 4.4 peak sun hours a day. Here's what solar looks like for a typical Tennessee home using ~10,800 kWh a year.

System size
7.8 kW
~20 panels
Est. gross cost
$23,459
before incentives
Federal tax credit
- $7,038
30% ITC (verify)
Net cost
$16,421
after credit
Year-1 savings
$1,350
Payback
12.2 yrs

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Enter your real electric bill — the calculator is preset to Tennessee.

Assumes $3.00/W installed and the 30% federal tax credit. Estimates only.

System size
10.4 kW
~27 panels
Est. gross cost
$31,278
before incentives
Federal tax credit
- $9,383
30% ITC
Net cost
$21,895
after credit
Year-1 savings
$1,800
Payback
12.2 yrs
25-year net savings
$39,470
after system cost, with rate escalation
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Incentives in Tennessee

The biggest incentive is usually the federal solar tax credit — see ourtax credit guide and confirm the current percentage, since the rules have changed recently. Tennessee may also offer state or utility incentives, rebates or performance payments; look up current programs in theDSIRE database.

What moves the number in Tennessee

  • Your utility's rate and net metering — see how net metering works.
  • Roof orientation, shading and sun hours (4.4/day here on average).
  • Installer pricing — always compare several quotes.

Figures are estimates for education, not a quote. Electricity rates and sun hours are approximate state averages. Confirm with local installers.

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