State solar incentives

Solar incentives in Tennessee you want to know about

Tennessee is a fairly sunny state, where a PV system can substantially cut your electricity bills and help save your family budget. And to save some more money, read our article on solar incentives in Tennessee.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Sell excess electricity with net metering program

Tennessee is one of the four states where a net metering policy hasn’t been developed. However, federal law requires its availability upon request. You will have to negotiate with your utility and the conditions may vary from company to company.

The general principle behind net metering always stays the same: it allows you to send the excess electricity back to the grid instead of storing it in a battery bank. When you sell your solar power to the utility, you receive credits that can be used to offset your next bills. Their value can be equal to full retail electricity price, but companies sometimes use an avoided cost rate which is a bit lower. The credits are usually rolled over for at least one year, after which time all unused credits may be retired, bought from you or allowed to roll over indefinitely.

Protect your solar panels from shade with Solar Easements

A solar easement contract is a written agreement between you and some other entity, for example, your neighbor. This type of contract helps you secure access to direct sunlight for your PV system for years to come. A solar easement protects your panels from potential impairments, such as vegetation and structures. It is voluntary and must contain the description of the property, protected space and a clause on compensation or termination of the contract. Once signed, it is tied to the land, not the owner.

Any such agreement must be created in written form and must meet the general requirements for legal contracts. You can use a sample provided by the Office of Energy Programs of the Department of Environment and Conservation.

Check out solar panels near you!

Looking to build a home solar system? Check out solar panels that we have for sale in Tennessee


Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.

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