A snapshot of what solar actually costs and pays back in Tennessee right now, plus every calculator on this site pre-loaded with Tennessee's numbers.
At Tennessee's average residential electricity rate of $0.12/kWh and 4.6 peak sun hours per day, a standard 6kW residential system produces roughly 8,059 kWh a year. Installed at an estimated $2.60/watt, that system runs about $15,600 before incentives, with a simple payback around 16 years at full retail-rate value. Your real number depends heavily on your actual usage and roof — run it precisely in the Solar Panel Calculator, pre-loaded with Tennessee's defaults.
Tennessee: TVA/local utility dispersed power production program, not standard net metering. That's roughly a 60% export credit relative to the retail rate in our model — see the exact math for your own production and consumption in the Net Metering Calculator.
The federal residential tax credit (Section 25D) expired for owned systems installed after December 31, 2025 — see our 2026 federal tax credit guide for the full picture. At the state level: Tennessee has no state solar tax credit; TVA-area programs use a dispersed power production structure instead of standard net metering. Check the Solar Tax Credit & Incentive Calculator for a worked example, and verify current program status with a database like DSIRE before budgeting around any specific number.
Get a full cost breakdown — equipment, labor, permitting — using Tennessee's regional cost estimate in the Solar Panel Cost Calculator, or see the full return-on-investment picture including degradation and rate escalation in the Solar ROI Calculator.
With an average residential rate of $0.12/kWh and tva/local utility dispersed power production program, not standard net metering, a typical 6kW system in Tennessee pays back in roughly 16 years based on current estimates — run your own numbers with your actual bill for a precise figure.
A typical 6kW residential system in Tennessee costs approximately $15,600 installed before any incentives, based on a regional estimate of $2.60/watt.