Solar panels in Tennessee
Roofs across Tennessee get about 1,568 hours of usable sunlight a year, and electricity costs 12.1¢/kWh. That combination puts a typical system's payback at 12.7 years. Here's the detail, from real rooftop data across 4 Tennessee cities.
Check your own roof in Tennessee → These are regional figures; your roof's size, pitch and shading move them a lot.
How Tennessee compares
Tennessee gets more sunlight than 57% of the cities we measure, and its electricity costs more than 11% of states and provinces. Both matter, but not equally: the electricity rate usually matters more, because solar saves money by replacing power you would otherwise buy. A sunny state with cheap power often pays back slower than a cloudy state with expensive power. Why that happens →
Solar by city in Tennessee
| City | Sun hrs/yr | Panels | Net cost | Payback |
|---|---|---|---|---|
| Memphis | 1,615 | 20 | $15,960 | 12.2 yrs |
| Nashville | 1,568 | 21 | $16,758 | 12.7 yrs |
| Chattanooga | 1,546 | 21 | $16,758 | 12.8 yrs |
| Knoxville | 1,514 | 21 | $16,758 | 12.8 yrs |
What a system costs in Tennessee
| System | Size | kWh/yr | Net cost | Saves/yr | Payback |
|---|---|---|---|---|---|
| 8 panels | 3.2 kW | 4,265 | $6,384 | $516 | 12.4 yrs |
| 12 panels | 4.8 kW | 6,397 | $9,576 | $774 | 12.4 yrs |
| 16 panels | 6.4 kW | 8,530 | $12,768 | $1,032 | 12.4 yrs |
| 20 panels | 8 kW | 10,662 | $15,960 | $1,290 | 12.4 yrs |
| 26 panels | 10.4 kW | 13,861 | $20,748 | $1,399 | 14.8 yrs |
Payback stops improving as systems grow, then gets worse. You can only save on electricity you were going to buy, so once a system covers your usage the extra panels mostly export at a lower rate.
Tennessee solar incentives
Every US household can claim the 30% federal residential clean energy credit, which is what the "after credit" figures above assume. On a $23,940 system that is $7,182 back. How the credit works →
State, utility and municipal incentives stack on top and change often — Tennessee may offer rebates, property or sales tax exemptions, or performance payments. We deliberately don't list specific state programmes here because they change several times a year and stale numbers are worse than none. The DSIRE database is the standard reference and is kept current.
Tennessee solar questions
Is solar worth it in Tennessee?
At 12.1¢/kWh and 1,568 usable sun hours, a typical system pays back in about 12.7 years and returns roughly $16,211 over 25 years. That is slower than average, so compare quotes carefully.
How many solar panels do I need in Tennessee?
About 21 panels for a home using 10,800 kWh a year. Each 400W panel produces roughly 533 kWh annually at Tennessee sunlight levels.
How much do solar panels cost in Tennessee?
A 8.4 kW system runs about $23,940 before incentives and $16,758 after the 30% federal credit. Quotes vary widely by installer and roof complexity — get three.
Worth reading before you buy
Regional estimates generated 2026-08-22 from Google Solar API rooftop samples across 4 Tennessee cities, and average Tennessee electricity rates. Not a quote and not financial or tax advice.