Is Solar Worth It in Tennessee? (2026 Analysis)
Updated 2026-07-07 · MySunROI Research
Solar in Tennessee is financially attractive for many homeowners in 2026. Average payback: 9.9 years. Net cost after ITC: $10,400. Annual savings: ~$1,050.
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Tennessee solar ROI snapshot
- 6 kW net cost after ITC: $10,400
- Estimated payback: 9.9 years
- Electricity rate: 12.5¢/kWh
- Peak sun hours: 4.5/day
- 30-year savings: $29,400
When solar is worth it in Tennessee
Solar installation costs in Tennessee reflect local labor rates, permit fees, and utility interconnection rules. A typical 6 kW system runs $11,550–$20,440 before the 30% federal tax credit, with net cost around $8,080–$14,310.
- Monthly bill $120+ with south-facing roof
- You purchase (not lease) to claim ITC
- Staying past payback (~9.9 years)
- See full Tennessee cost breakdown
When to wait or skip
- Moving within 3–5 years
- Heavy shading or roof replacement needed soon
- Very low usage under $75/month
Tennessee quick stats
- 6 kW after ITC
- $10,400
- Payback
- 9.9 years
- Electric rate
- 12.5¢/kWh
- Annual savings
- $1,050
Frequently Asked Questions
What is the payback in Tennessee?
Average 9.9 years for a 6 kW system after the 30% federal credit, based on Tennessee rates and production.
Lease or buy?
Buying usually saves $10k–$30k more over 25 years. See lease vs buy guide.
Related pages
How We Calculate Solar Costs
MySunROI estimates combine NREL residential PV installed-price benchmarks, EIA state electricity rates, and regional labor modifiers — updated 2026-07-07.
Estimates only — not tax or financial advice. Estimates based on NREL PV cost benchmarks, EIA electricity rates, and 2026 installer pricing surveys.