Is solar worth it in Tennessee?

With an average payback period of 14.2 years and 25-year savings of $23,625, solar panels in Tennessee can be worthwhile depending on your situation.

How much do solar panels cost in Tennessee?

The average cost of a 6kW residential solar system in Tennessee is $13,400 before incentives and tax credits.

How much can I save with solar panels in Tennessee?

Homeowners in Tennessee save an average of $945 per year with solar panels, totaling approximately $23,625 over 25 years.

Solar Panel ROI in Tennessee

Is solar worth it in TN?

1.8x ROI Score

14.2 yrs Payback Period

$945 Annual Savings

Key Solar Metrics for Tennessee

Solar Irradiance	4.82 kWh/m²/day
Estimated Annual Production (6kW system)	8,009 kWh
Average Electricity Rate	$0.118/kWh
Average System Cost	$13,400
Estimated Annual Savings	$945/year
Payback Period	14.2 years
25-Year Savings	$23,625

Tennessee vs National Average

Solar Irradiance 4.82 kWh/m²/day -2.8% vs national avg

National Avg Irradiance 5.12 kWh/m²/day baseline

Payback Period 14.2 years Slower than average

How We Calculated This

Our solar ROI calculations use data from the National Renewable Energy Laboratory (NREL) PVWatts API, which models solar energy production based on location-specific solar irradiance, weather patterns, and panel tilt angles. We assume a standard 6kW residential system with south-facing panels at optimal tilt.

Electricity rates are sourced from the U.S. Energy Information Administration (EIA) and represent state-level residential averages. Annual savings are calculated by multiplying estimated production by the local electricity rate. The payback period divides system cost by annual savings. The ROI score represents total 25-year savings divided by system cost.

These estimates do not include federal tax credits (currently 30% ITC), state incentives, SRECs, or utility rebates, which can significantly reduce the effective payback period. Actual results vary based on roof orientation, shading, local weather, and utility rate changes.

Compare with Nearby States

Kentucky 14.1 yr payback $934/yr savings Virginia 13.5 yr payback $1,054/yr savings North Carolina 12.9 yr payback $1,035/yr savings Georgia 12.1 yr payback $1,114/yr savings Alabama 11 yr payback $1,201/yr savings Mississippi 12.6 yr payback $1,034/yr savings Arkansas 13.8 yr payback $932/yr savings Missouri 13.3 yr payback $1,022/yr savings

Solar Outlook for Tennessee

Tennessee receives 4.82 kWh/m²/day — 2.8% below the national average. Lower electricity rates of $0.118/kWh extend the payback to 14.2 years, though the federal 30% ITC and state incentives can meaningfully improve the economics.

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