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Home solar in Tennessee

Tennessee has no state net metering; TVA's local power companies set their own buyback deals, and in Nashville NES pays only about 3 cents/kWh plus fuel cost for extra solar you send to the grid.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

13.4¢average home price per kWh (EIA, August 2026)
Harder case for solarAmong the cheapest power in the U.S., no net metering, low buyback rates, and no state rebate or tax credit. TVA's Green Connect helps find vetted installers but pays nothing.

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Net metering No statewide net metering

Most Tennesseans buy TVA power through a city or co-op local power company (LPC), and there is no state net metering law. TVA's Green Power Providers buyback closed to new applicants on Dec. 31, 2019; since then each LPC decides how to treat rooftop solar. Some offer TVA's Dispersed Power Production program; Nashville Electric Service (NES) runs NESolar Savings, paying 2.9 to 3.1 cents/kWh (by season) plus TVA's monthly fuel cost for exported power. Solar you use at home still saves the full retail price. Source

  • 2019-12-31: TVA Green Power Providers closes to new applicants
  • 2024-08: NESolar Connect/Savings guidelines take effect

Solar credits (SRECs) No market

No SREC market. Under NESolar Savings, NES takes the environmental attributes (RECs) of the power you export. Source

Rebates and incentives

TVA Green Connect

No cash; free solar guidance, online training and a list of TVA-vetted installers

Homeowners whose local power company takes part

open grant Source

NESolar Savings buyback (Nashville)

$0.02916–$0.03147/kWh plus TVA fuel cost for exported power

NES customers with approved rooftop solar

open performance payment Source

TVA Green Power Providers

Past buyback program

Homeowners (past)

ended performance payment Source

Taxes

Property tax: Unclear: Tennessee caps the taxable value of certified green energy property at 12.5% of installed cost, but it is not confirmed that this covers home rooftop systems.
Sales tax: None found: no sales tax exemption for home solar.

Solar laws

  • TVA local power company rules (no state net metering law) (2020). After Green Power Providers closed, each LPC sets its own rooftop solar terms under its TVA contract. Source
  • NESolar Connect and NESolar Savings Guidelines (2024). NES buys exported solar at seasonal rates plus TVA fuel cost and takes the RECs; credits over $400 a month on average require sales tax registration. Source

Community solar

Some local power companies offer it: for example NES's Music City Solar sells panel subscriptions (under $200 per panel) with bill credits through 2038.

Timeline

  1. TVA Green Power Providers closes to new applicants
  2. NESolar Connect/Savings guidelines take effect
  3. Federal 30% homeowner tax credit (25D) ends

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options