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

Solar Incentives in Knoxville, TN

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

Federal Solar Investment Tax Credit (ITC)

30% of total system cost

Knoxville 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 Knoxville, TN.

Tennessee State Solar Incentives for Knoxville Homeowners

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

Net Metering in Knoxville, 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.

Solar Renewable Energy Credits (SRECs) in Knoxville

Not Available

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

Tax Exemptions in Knoxville

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 Knoxville

Install your solar system: Work with a qualified Knoxville 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 Knoxville 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.

Solar panel array harnessing sunlight in Knoxville, Tennessee - Solar Incentives

Frequently asked

Solar Incentives FAQ - Knoxville, TN

Knoxville 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 Knoxville 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, Knoxville 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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