Contemporary home with rooftop solar system in Franklin, Tennessee - Solar Incentives

Solar Incentives in Franklin, TN

Complete guide to solar tax credits, rebates, and incentive programs available to Franklin homeowners in 2026.

TL;DR

Franklin homeowners can stack the 30% federal tax credit with Tennessee programs to cut solar costs.

Franklin homeowners qualify for the 30% federal solar tax credit (ITC) on total system cost.
Tennessee has limited net metering — ask local utilities about bill-credit options.
Tennessee adds 2 state-level incentives on top of the federal credit.
Incentives stack — combine the federal ITC with local and utility programs.

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Franklin homeowners can deduct 30% of the cost of installing a solar energy system from their federal taxes. This applies to all qualified solar installations in Franklin, TN.

What solar incentives can Franklin homeowners get?

TVA Green Power Providers

Rebate

The Tennessee Valley Authority's Green Power Providers program offers credits for solar energy contributed to the grid.

Value

Generation credits at TVA's published rates

Sales Tax Exemption

Sales Tax

Tennessee does not charge sales tax on residential solar energy equipment.

Value

Sales tax exemption on solar equipment

How does net metering work in Franklin, TN?

Limited/Unavailable

Tennessee does not have a traditional net metering policy. TVA and local power companies offer programs like Green Power Providers, but terms differ from standard net metering.

What are SRECs in Franklin?

Not Available

Tennessee does not have an SREC market. The TVA system operates differently from states with restructured electricity markets.

Tax Exemptions in Franklin

Property Tax Exemption

No property tax exemption for solar systems

Sales Tax Exemption

Solar equipment purchases are exempt from state sales tax

How to Claim Solar Incentives in Franklin

Install your solar system: Work with a qualified Franklin solar installer to design and install your system.
Claim the federal ITC: File IRS Form 5695 with your federal tax return to claim the 30% tax credit.
Apply for state programs: Contact your Tennessee energy office or local Franklin utility to apply for available incentives.
Set up net metering: Check with your local utility about available programs.
Keep records: Save all receipts, contracts, and permits for tax filing and warranty purposes.

Residential rooftop equipped with solar panels in Franklin, Tennessee - Solar Incentives

Frequently asked

Solar Incentives FAQ - Franklin, TN

Franklin homeowners can take advantage of the 30% federal solar tax credit, plus 2 state-level incentive programs. These incentives can reduce your total solar cost by 30-50%.

The 30% federal tax credit alone can save Franklin homeowners approximately $5.1k on a typical system. Combined with Tennessee state programs, total savings over 25 years can reach $26k or more.

Tennessee does not have a traditional net metering policy. TVA and local power companies offer programs like Green Power Providers, but terms differ from standard net metering.

To claim the 30% federal ITC, Franklin homeowners need to file IRS Form 5695 with their annual tax return. The credit applies to the full cost of your solar system including equipment and installation. You must own the system (not lease it) to claim the credit.

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