Tennessee has adopted solar in a big way, with more than 2,300 installations – not surprising for a state with more than 100 days of sunshine a year. Businesses and homeowners alike are noticing state incentives that make solar an attractive and clean source of energy that can help save them money. Learn more about switching to solar panels in Tennessee, including an analysis of current electricity costs, available rebates on solar panel systems, and a comprehensive list of solar providers.
Tennessee’s Solar Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
Electricity Costs in Tennessee
Tennessee residents love their electricity, ranking 13th in the county for direct use, according to the U.S. Energy Information Administration. Despite being among the highest users of electricity in the nation, Tennesseans spend close to the U.S. average thanks to low residential electricity prices of less than $0.11 per kWh. Nevertheless, households are still spending a great deal of their earnings on electricity. High electric bills can be a helpful factor in drawing in potential solar buyers, as the power that solar panels in Tennessee produce will help lower costs and provide a great deal of savings over the system’s lifetime.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Tennessee
Library of Solar Resources
Tennessee Solar Policies & Incentives
A 5 kW solar system can cost about $20,000. Tennessee offers incentives that can help lower the price by up to $8,000. Although Tennessee lacks strong solar policy and implementation, there are still resources for potential solar buyers to save money. The Tennessee Valley Authority offers a $1,000 rebate upon install, instantly lowering the cost of the system. Apart from this rebate, the state also offers performance payments and property tax exemptions. Without a state income tax, there are no solar tax credits offered. But with other money-saving options, a solar system can still provide a return on investment.
REBATES/INCENTIVES
This program provides an ad valorem property tax assessment for qualified green energy production facilities. The assessed property value of all certified green energy production facilities may not exceed 12.5 percent of installed costs for solar.
None for residential specifically
None for commercial specifically
POLICIES
Tennessee law has a statute that allows for easements to be created that ensure access to direct sunlight for solar energy systems. Easements may include descriptions of property affected, angles at which easement extends and conditions of compensation or termination.
None for residential specifically
None for commercial specifically
TAX CREDITS
None
None for residential specifically
Tennessee law allows for a 100 percent rebate on sales and use tax on purchases for solar machinery and equipment used to produce electricity in a certified green energy production facility.
TAX EXEMPTIONS
None
None for residential specifically
None for commercial specifically
Solar Panel Contractors & Installers in Tennessee
Tennessee residents have their pick of solar companies with many to choose from throughout the state. Listed below are businesses operating across Tennessee.
This is the only contractor in the State of Tennessee to be awarded the Achievement Award from The Tennessee Center for Performance Excellence twice.
Where it operatesCookeville, TN
Year of opening1957
ARiES Energy installs solar PV, solar thermal, LED lighting, power conditioning, energy efficiency products and service, and more. The company has a combined five years of experience in the renewable energy industry. ARiES Energy is wholly-owned by PHG Energy of Nashville.
Where it operatesKnoxville, TN
Year of opening2011
GreenForm is a locally based and owned multifaceted company that specializes in the restoration and value enhancement of both residential and commercial properties. A fully-licensed contractor, the company offers a variety of construction services including roofing along with solar PV installation. In addition to its Chattanooga headquarters, GreenForm maintains offices in Nashville and in Huntsville, Alabama.
Where it operatesChattanooga, TN
Year of opening2012
TQE does both residential and commercial projects of any size system.
Where it operatesChattanooga, TN
Year of opening2012
JWC Specialties investigates, designs, procures, builds, and maintains cost savings energy systems and energy storage systems for industry.
Where it operatesWhite Bluff, TN
Year of opening1969
Adman Electric is one of the region’s largest electrical contractors.
Where it operatesChattanooga, TN
Year of opening1975
This company installs solar PV, solar heat, wind power and hydro systems.
Where it operatesMidway, TN
Year of opening2008
Pointe is a full-service general contractor constructing projects ranging from small office renovations to multi-million dollar developments.
Where it operatesChattanooga, TN
Year of opening2014
Mainstream Green Solutions in Tennessee offers a variety of power solar solutions for your home or office.
Where it operatesLexington, TN
Year of opening2009
Lightwave Solar is a solar engineering, procurement, and construction firm.
Where it operatesNashville, TN
Year of opening2006
This company is certified for Sharp SRS Solar Panel installations by Sharp and has NABCEP entry level solar certification.
Where it operatesMemphis, TN
Year of opening1920
SRPS provides professional design, installation and maintenance of solar PV systems.
Where it operatesJackson, TN
Year of opening2010
Stansell Electric Company, Inc. is an award-winning electrical contractor and systems integrator.
Where it operatesNashville, TN
Year of opening1940
This company offers geothermal and solar solutions and was named a Green Leader by the Nashville Post.
Where it operatesNashville, TN
Year of opening1938
Green Earth Solar provides solar installation services to residential and commercial customers in the Tennessee Valley area and beyond.
Where it operatesKnoxville, TN
Year of opening2010
This company designs and installs solar PV for residential, commercial and municipal applications in the tri-Cities region of northeast Tennessee and southwest Virginia.
Where it operatesBristol, TN
Year of opening1982
Solar Energy Resources for Tennessee Residents
Ready to learn more about solar policies, incentives and other solar-related information in Tennessee? Review our list of resources to answer all your questions.
Learn more information about the governing body of Tennessee that decides electricity rates and services of Tennessee public utilities.
Explore current legislative issues about solar energy as well as information to contact individual legislators can be found at this site.
Search a comprehensive listing of all solar incentives offered in Tennessee.
Discover official energy statistics within the state of Tennessee offered by the U.S. government.