Solar payback / By state / Tennessee
Solar panel cost in Tennessee, 2026
Electricity here costs 12.8 cents a kWh, below the national average of 17.1 cents. A kilowatt of panels makes about 1,300 kWh a year on a Tennessee roof. Put your own bill in below.
Your house
Pays for itself in
15 yr
At today's bill, rising
System you need
11.7 kW
about 30 panels
Cost after credits
$33,880
no federal credit in 2026
25 year net gain
$32,394
savings minus what it cost
What you have saved, year by year
Your monthly bill
On grid power you pay $180 a month, every month, for as long as you live there.
An 11.7 kW system in Tennessee makes about 15,188 kWh a year, which covers most of the 16,875 kWh your house uses. It costs $33,880 installed, and because the federal credit ended on 31 December 2025 that is also what you pay. Over 25 years you would otherwise hand the utility $78,752.
What these numbers mean in Tennessee
Two things decide whether solar pays here, and only one of them is sunshine. The first is what you are paying now: Tennessee sits 40 of 51 for residential electricity price, so every kWh the roof makes is worth 12.8 cents that stays in your pocket. The second is how much the roof makes, and Tennessee ranks 26 of 51 there.
A state with expensive power and moderate sun beats a sunny state with cheap power almost every time. That is why solar pays back faster in the northeast than in parts of the south, which surprises most people.
On a $180 a month bill, a Tennessee house uses roughly 16,875 kWh a year. Covering ninety percent of that needs about 11.7 kW of panels, which costs $33,880 installed at the national average price per watt, and produces about 15,188 kWh a year.
Those savings pass the cost of the system in year 15. Over 25 years you save $66,274 against a grid bill that would have totalled $78,752, leaving you $32,394 ahead. Panels are generally warranted for 25 years and keep working after that at reduced output.
One thing every figure above assumes: no federal tax credit. The 30 percent credit ended on December 31, 2025. If a salesperson or a calculator shows you a shorter payback, check whether they have quietly subtracted a credit that no longer exists.
Common questions
- How much do solar panels cost in Tennessee?
- A system big enough for a typical Tennessee home is around 11.7 kW, which is about 30 panels. At the national average of $2.90 a watt that is $33,880 installed. Because the 30 percent federal tax credit ended on December 31, 2025, that is also what you pay: there is no longer a credit to subtract.
- Is solar worth it in Tennessee in 2026?
- Yes, on these figures. Electricity in Tennessee costs 12.8 cents a kWh and a kilowatt of panels makes about 1,300 kWh a year here, so the system pays for itself in about 15 years and is ahead by $32,394 over 25. That is with no federal credit at all.
- Is there still a solar tax credit in Tennessee?
- Not a federal one. Section 25D, the 30 percent residential credit, ended on December 31, 2025 under the One Big Beautiful Bill, with no phase down. State and utility programs are separate and some still run, so check with your own utility before you sign. Any calculator still showing you 30 percent off is about three years optimistic on payback.
- How many solar panels does a Tennessee home need?
- About 30 panels, taking a modern 400 watt panel. That comes from a house using 16,875 kWh a year and each kilowatt of panels producing 1,300 kWh a year in Tennessee.