Solar Panel Cost in Tennessee (2026)
In Tennessee, home solar installs for roughly $2.55/watt in 2026. A typical 8 kW system runs about $20,400, with an estimated payback near 12.6 years at the state's ~15¢/kWh electricity rate.
| System size | Est. cost | Est. annual savings | Payback |
|---|---|---|---|
| 6 kW | $15,300 | $1,200/yr | 12.6 yrs |
| 8 kW | $20,400 | $1,600/yr | 12.6 yrs |
| 11 kW | $28,000 | $2,200/yr | 12.6 yrs |
Estimates use ~$2.55/watt installed and Tennessee's ~15¢/kWh rate. Before any state/local incentives.
Tennessee solar notes
Tennessee sits in TVA territory with no true net metering; excess generation is bought at low wholesale rates, so self-consumption drives most of the value.
Heads up: the 30% federal tax credit for purchased home solar ended Dec 31, 2025. Leased/PPA systems may still qualify through 2027, and Tennessee may offer its own incentives — check locally.
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