Home · 2026
What home solar costs and saves in Tennessee this year — built on the state's real 13.76¢/kWh rate and no state mandate rules.
Avg electricity rate
13.76¢/kWh
Net metering
No state mandate
Federal status
25D ended (2025)
Verified 2026-06-26 · source
In Tennessee, the average residential electricity rate is about 13.76¢/kWh — below the U.S. average of roughly 17.6¢. Because a solar system's payback is driven mostly by the utility rate it offsets, Tennessee's low rates make home solar a longer-term play that hinges on incentives and rising rates in 2026.
Tennessee has no statewide net-metering mandate, so export compensation varies by utility. Confirm your specific utility's buyback terms before sizing a system.
The federal 30% residential tax credit (Section 25D) ended for systems installed after December 31, 2025. In 2026, home-solar value comes from offsetting your utility bill, net metering, and battery backup — not a federal credit.
For a typical Tennessee home spending about $150/month on electricity, our model estimates a 9.34 kW system costing roughly $28,020 after incentives, paying back in about 15.6 years, with on the order of $16,961 in 25-year savings. These are estimates built from Tennessee's real electricity rate — get a quote to confirm your numbers.
With Tennessee's net-metering rules, 2026 home solar is increasingly about energy independence — pairing panels with a battery to ride through outages and shift usage — not just shaving the monthly bill.
Estimates only — not tax, financial, or legal advice. Verify all incentives and savings with a qualified professional before acting.
No — the federal residential credit (Section 25D) ended for systems installed after December 31, 2025. Tennessee home solar now pays through your electricity rate (about 13.76¢/kWh), net metering, and battery backup rather than a federal credit.
Tennessee uses no statewide net-metering mandate. That affects how the power you export is credited and, in turn, your payback — full retail-rate crediting is most favorable, while net billing makes pairing solar with a battery more attractive.
At about 13.76¢/kWh, Tennessee's residential electricity rate makes a longer-term case for solar economics in 2026. Run your address through the calculator above for a source-backed estimate of system size, net cost, and payback.
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