Living in Tennessee and considering solar panels? You’re in a small but growing group. While nuclear power dominates the state’s energy mix -- accounting for 48% of its electricity in 2023 -- solar energy is still in its early stages here, providing just 10% of the state’s electricity, mostly from large utility-scale projects. On top of that, state-level incentives for rooftop solar are almost nonexistent.
Yet, Tennesseans are embracing solar energy. According to the Solar Energy Industries Association, the state has around 92,911 residential solar installations, a number that keeps rising. Why? Dropping solar panel prices and climbing power bills are making solar an increasingly attractive option.
For homeowners ready to make the switch, the biggest financial boost comes from the federal government: a 30% tax credit made possible by the Inflation Reduction Act of 2022. Unfortunately, state-specific incentives in Tennessee are still lacking.
If you’re ready to explore solar energy, here’s a breakdown of what you need to know, starting with the top solar installation companies in Tennessee.
National solar panel companies in Tennessee
There are 150 solar companies in Tennessee, with 67 of these companies being installers or developers, according to the SEIA. Even though you have a lot of installer options, you should still try to get as many quotes as you can to make sure you get the best price possible. Here are a few installers servicing Tennessee.
Tesla Solar
Most affordable
Tesla's solar branch seems to be the least loved of Elon Musk's ventures. Even Tesla's Solar Roof seems to get more love.
If price is the thing you won't budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla's service is a bit of a gamble.
EnergyPal
Most flexible
EnergyPal is more than just a middleman. It'll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options and offers responsive customer service support.
Local solar panel companies in Tennessee
Big national installers aren't your only options. Here are a few local solar installers to consider.
LightWave Solar has been installing solar in Tennessee since 2006. It offers rooftop and ground-mounted solar panels, as well as panels mounted on canopies. The company also installs battery backup systems. It offers a five-year workmanship warranty. Note that LightWave Solar usually requires a 25% down payment upon signing a solar contract.
Nashville Solar Works is a local installer servicing parts of Tennessee. It works with professionals certified by the North American Board of Certified Energy Practitioners to install solar panels and batteries. To help you size your system correctly, Nashville Solar Works also offers a free home energy audit before starting anything else. Financing options are available through a third party.
How to determine which solar company in Tennessee is best for me
Solar is a costly, long-term investment. And you'll want to make sure you're picking the right installer for the job. Finding a trustworthy installer can be a tricky process, but there are a few general things to look for during your search. Here are some tips to help you find a reputable installer.
- Understand federal, state and local solar incentives. Make sure your installer can accurately explain how tax credits and incentives work.
- Read online reviews from multiple sources. Google and Yelp are a good place to start.
- Get recommendations from neighbors who have solar installed.
- Check an installer's licensing and certifications. Look for installers who are certified by NABCEP.
- Compare multiple solar quotes.
- Ask your installer all your questions, even the difficult ones.
- Assess your potential savings cost and your solar payback period. Your installer should be able to explain this to you.
Cost of solar panels in Tennessee
Here's a look at the average cash price for a typical solar panel system in Tennessee before factoring in tax credits and incentives, according to data from FindEnergy.com.
Average cost of solar panels in Tennessee
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| 5 | $3.95 | $19,750 | $13,825 |
| 5 | $3.56 | $17,800 | $12,460 |
Below, you'll find an infographic displaying the average total cash price, cost per watt and typical system size for a solar panel system in your state, according to data from FindEnergy.com. The map's prices don't factor in potential rebates from tax credits or state incentives. Certain states don't have any FindEnergy solar data and are grayed out on the map.
Tennessee solar panel incentives and rebates
Tennessee doesn't offer many incentives for its residents to go solar.
"It's really important to have a strong state or utility-level solar policy," said Jill Kysor, senior attorney and leader of solar initiatives with the Southern Environmental Law Center. "Without a good policy from your utility, it can be really tough to make it work. There's great opportunities out there right now with the IRA, but we still need utilities to have good policies in place for folks to really benefit."
Tennessee is one of the few states in the US that doesn't have rules around net metering, the process of selling excess energy to the power grid. The Tennessee Valley Authority owns more than 90% of the state's electricity generating capacity and offers a program similar to net metering called the Dispersed Power Production Program. Keep in mind that this program is not a true net metering policy. And Tennessee's clean energy sales tax exemption is only available for commercial and industrial solar projects, not residential.
"Most people living in Tennessee are served by a local power company that buys its electricity wholesale from TVA," Kysor said. "TVA has several programs for rooftop solar customers, but they do not offer any traditional retail-rate net metering to customers flowing through the local power companies."
As far as federal incentives go, homeowners can take advantage of the residential clean energy credit. This incentive allows you to claim 30% of the total cost of your solar system back in tax credits.
Here's a closer look at the solar incentives in Tennessee.
Tennessee solar incentives
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| This is a federal tax credit allowing you to claim 30% of the total cost of your system back on your federal taxes. |
| Tennessee has a property tax assessment for certified green energy production facilities. This tax assessment limits the taxable value of having a solar system on your property. If you have solar panels, your assessed property value may not exceed 12.5% of installed costs for solar. |
| Operated by the TVA, this program allows you to sell your excess solar energy to the TVA at its avoided cost rate. |
How solar-friendly is your state?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here's how your state scored on CNET's solar policy test.
Tennessee
Grade: F
Incentives available:
- Utility-governed net billing -- solar buyback at the wholesale rate
- Exemption on property taxes exceeding the value of 12.5% of the total installed cost of the solar panel system
Strongest scoring categories:
If you live in Tennessee, you'll be getting a little bit of cash back for sending your excess energy to the grid. But at the wholesale rate, you won't exactly be lining your pockets with dollar bills. Additionally, the state offers an exemption on property taxes, but you'll still have to pay up taxes on 12.5% of the worth of your solar panel system.
Categories to improve:
A good start for Tennessee could be bringing those existing incentives up to par with other states, reworking the solar buyback program to retail rate net metering and creating a full property tax exemption for solar panel systems.
How to pay for solar panels in Tennessee
Solar panels are a serious purchase, so it's good to know all your buying options beforehand. Weigh all your choices and pick a purchasing method that works best for your situation. Here are a few ways you can pay for your solar panels.
Cash: If it's in your budget, paying cash upfront is the best way. There's no interest or financing fees, and you'll always be eligible for tax incentives. If you think solar might be a future investment, consider saving up in a high-yield savings account. This will net you more money over time.
Solar loan: If you need to finance your solar panels, most solar providers will offer you a solar loan. These loans will either be through the solar provider themselves or a third-party financial institution. However, be mindful that a solar loan might come with high interest rates and other fees.
Other types of loans: Explore other financing options beyond a solar loan. Taking out a personal loan with your bank or opening a home equity line of credit are just a couple other financing options for your solar panels. If you choose to go with a HELOC, be aware of the risks involved. Your home becomes collateral, and if you can't pay back what you owe, your home could face foreclosure. With any loan, whether from a third-party lender or a solar provider, shop around and compare rates and terms before making a final decision.
Lease or power purchase agreement: You don't have to own your own solar panels if you don't want to. You can either enter a lease or a power purchase agreement. If you enter a solar lease, you'll pay for the use of a solar system owned by the solar company. On the other hand, if you enter a power purchase agreement, you'll pay for electricity generated from a company-owned solar system at a fixed rate. The fixed rate from the solar company is usually lower than the retail electricity rate from the local utility company.
Installation factors to keep in mind
Solar is an incredibly site-dependent purchase, with some homes being better suited than others. Here are a few installation factors to keep top of mind as you decide if solar is right for your home.
Condition of your roof: Some roofs are not suitable for solar panels due to factors like age, damage, angle, pitch and tree cover. These factors can impact the efficiency of your solar panels as well. Solar panels perform best on roofs angled between 15 and 40 degrees facing south, according to the US Department of Energy. A trustworthy solar installer will perform a roof inspection before solar installation.
Insurance coverage: If your homeowners insurance agency covers solar panels, consider adding your panels to your policy.
Location: The more peak sunlight hours your state has, the more efficient your solar panels will be. Tennessee gets a decent amount of sunlight, with an average of 4.1 to 4.5 hours of peak sunlight per day.
Homeowners association regulations: Because solar panels change the look of your home, your HOA might have certain rules and regulations around installing solar panels. If you have an HOA, make sure to check with them before installing solar.
Financing options: If you can't pay cash upfront, there are various financing options available to pay for your solar panels. Solar loans, personal loans, solar leases and power purchase agreements are just a few options worth considering. Solar is a big investment, so do your research and find the best payment method that best works for your situation.
How we found the best solar panel companies
The companies we listed above as "the best" are curated from CNET's best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we've completed a full review on a company or not, it's always a good idea to get multiple quotes from different installers before choosing a company.
Tennessee solar power FAQs
Is solar worth it in Tennessee?
It depends on what you're looking to get out of solar. Solar is expensive, and Tennessee doesn't offer many incentives or benefits toward solar installation. The state is also one of the few states in the country that doesn't have net metering. However, solar is beneficial for those wanting to reduce their carbon footprint, spend less money on electricity from their power provider and establish energy independence.
Does Tennessee offer state solar incentives?
Tennessee only offers one state-level solar incentive, the Green Property Tax Assessment. This tax assessment limits the taxable value of having solar put on your property by 12.5%. The best incentive Tennessee residents have is the federal solar tax credit, also known as the residential clean energy credit. This is a federal tax incentive that allows you to claim 30% of the total cost of your solar system back in tax credits.
How long do solar panels last?
The average lifespan of a solar panel is typically between 20 and 30 years. However, there are certain factors that can affect your panel's lifespan, like climate, the quality of installation, proper maintenance and the type of panel.
Sarah Drolet is a CNET writer, reporter and strategic thinker for CNET's home energy and utilities coverage. Sarah specializes in residential solar power, solar storage solutions and whole-home backup technology. A self-identifying home battery nerd, Sarah brings over a year of experience combing through battery tech spec sheets and warranty booklets. Sarah has recently spent time at CNET's Testing Labs in Louisville, KY to scope out its home battery testing capabilities. Sarah uses her degree in communications, previous experience writing for MYMOVE, and her passion for helping people achieve their energy independence goals by crafting expert-filled reviews, best lists, news and articles. When not sniffing out battery or solar news, you can find her chilling on the couch with her PlayStation and cat, Suzie. You can reach Sarah at [email protected]
Expertise Energy, Home Battery Back-Up, Solar Batteries, Energy Storage, Solar Inverters, Solar Shingles, Solar Power, State Solar Policy, Renewable Energy, Climate Issues, Home Electrification, Smart Home Energy Tech, Deregulated Energy.
Sarah Drolet is a CNET writer, reporter and strategic thinker for CNET's home energy and utilities coverage. Sarah specializes in residential solar power, solar storage solutions and whole-home backup technology. A self-identifying home battery nerd, Sarah brings over a year of experience combing through battery tech spec sheets and warranty booklets. Sarah has recently spent time at CNET's Testing Labs in Louisville, KY to scope out its home battery testing capabilities. Sarah uses her degree in communications, previous experience writing for MYMOVE, and her passion for helping people achieve their energy independence goals by crafting expert-filled reviews, best lists, news and articles. When not sniffing out battery or solar news, you can find her chilling on the couch with her PlayStation and cat, Suzie. You can reach Sarah at [email protected]
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