Solar Panel Cost in Tennessee

The cost of solar panels in Tennessee typically ranges from $2.50 to $3.50 per watt before incentives. For a standard 6 kW residential system, homeowners in Tennessee can expect to pay between $15,000 and $21,000 before the federal tax credit. After applying the 30% federal Investment Tax Credit, the net cost drops to approximately $10,500-$14,700. Actual costs vary based on your specific roof, chosen equipment, and installer. We recommend getting at least three quotes from local Tennessee solar installers to find the best price.

The average solar payback period in Tennessee depends on local electricity rates, available incentives, and sun exposure. Most Tennessee homeowners see a payback period between 6 and 10 years. After the payback period, you essentially enjoy free electricity for the remaining 15-20+ years of your system's life. Higher local electricity rates and additional state incentives can shorten the payback period significantly. A qualified Tennessee solar installer can calculate your specific payback period based on your energy usage and roof characteristics.

Tennessee homeowners who install solar panels typically save between $20,000 and $50,000 over 25 years, depending on system size, electricity rates, and available incentives. These savings come from reduced or eliminated electricity bills, net metering credits, and any applicable SREC income. As electricity rates in Tennessee continue to rise (historically averaging 2-3% annually), your savings grow each year. The combination of the 30% federal tax credit and any Tennessee-specific incentives helps maximize your return on investment.

The right solar system size for your Tennessee home depends on your electricity consumption, roof space, and budget. The average Tennessee home uses approximately 10,000-11,000 kWh per year, which typically requires a 6-8 kW solar system. To determine your ideal size, review your annual electricity usage on recent utility bills. Factors like Tennessee's average peak sun hours, your roof orientation, and any shading will affect how many panels you need. A professional Tennessee solar installer will use satellite imagery and your usage data to recommend the optimal system size.

Yes, solar is generally worth the investment for Tennessee homeowners in 2025. With solar panel costs at historic lows, the 30% federal tax credit still available, and electricity rates continuing to rise, the financial case for solar in Tennessee is strong. Most Tennessee homeowners who go solar see positive returns within 6-10 years, followed by 15-20+ years of significant savings. Additionally, solar panels increase your home value, provide energy independence, and protect against future electricity rate increases. The best way to determine if solar is right for your Tennessee home is to get a free, customized quote from a qualified local installer.