Solar Panel ROI in Tennessee

· Source: NREL PVWatts

Is solar worth it in TN? Here's what the data says.

1.8x ROI Score
14.2 yrs Payback Period
$945/yr Annual Savings
$23,625 25-Year Savings

Your savings estimate

$ /mo bill
Annual savings $945
·
Payback 14.2 yrs
·
25-yr savings $23,625

25-Year ROI Timeline

With a 14.2-year payback, your system spends 10.8 years in profit after breaking even.

Payback (14.2 yrs)
Profit (10.8 yrs)
Year 0 Year 6 Year 13 Year 19 Year 25
System Cost $13,400
25-Year Savings $23,625
Net Profit $10,225

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Solar Calculator for Tennessee

Adjust the values below to see your personalized solar ROI estimate.

kW
$
$ /kWh
4.82 kWh/m²/day
Based on NREL data for Tennessee
ROI Score 1.8x
Annual Production 8,009 kWh
Annual Savings $945
Payback Period 14.2 years
25-Year Savings $23,625
System Cost $13,400

Tennessee vs National Average

Solar Irradiance: Tennessee vs National Average Tennessee: 4.82 kWh/m²/day National Avg: 5.12 kWh/m²/day
Solar Irradiance 4.82 kWh/m²/day
-6% vs national avg
Payback Period 14.2 years Slower than avg
Electricity Rate $0.118 /kWh Below avg

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). Annual savings are calculated by multiplying estimated production by the local electricity rate. The ROI score represents total 25-year savings divided by system cost.

These estimates do not include the federal 30% ITC tax credit, state incentives, SRECs, or utility rebates, which can significantly reduce the effective payback period.

Solar ROI by Zip Code in Tennessee

Explore solar data for specific zip codes in Tennessee. Click any zip code for a full local breakdown.

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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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