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#44 Solar ROI State

Solar Panel ROI in Tennessee (TN)

Tennessee averages 1,320 kWh per installed kW per year. At $11.8¢/kWh average utility rates, a 7 kW system produces a 25-year NPV of $3,482.

$13,328
System Cost (After Credits)
$3,482
25-Year NPV
13 years
Payback Period
$0.149/kWh
Solar LCOE

Solar Cost Breakdown in Tennessee

7 kW system (2.72/W)$19,040
Federal ITC (30%)-$5,712
Net Cost$13,328

Solar Production in Tennessee

Tennessee receives an average of 1,320 kWh of solar energy per installed kW per year, based on NREL PVWatts data for a south-facing system at 20° tilt. A 7 kW system produces approximately 9,240 kWh in year one, declining by 0.5% annually due to panel degradation.

At Tennessee's average residential rate of $11.8¢/kWh with 4% annual escalation, first-year savings are $1,090. The solar LCOE of $0.149/kWh is -26% below the current utility rate and stays fixed while utility rates continue to climb.

Net Metering in Tennessee

TVA territory — Green Invest program and distributed solar buyback at wholesale

Solar FAQ for Tennessee

How much does solar cost in Tennessee?
A typical 7 kW residential solar system in Tennessee costs $19,040 before incentives. After the 30% federal ITC, the net cost drops to $13,328.
What is the solar payback period in Tennessee?
Based on the average TN utility rate of $11.8¢/kWh and local solar irradiance of 1,320 kWh/kW/year, a 7 kW system typically pays for itself in 13 years. The 25-year NPV is $3,482.
Does Tennessee have net metering?
TVA territory — Green Invest program and distributed solar buyback at wholesale
What is the LCOE of solar in Tennessee?
The levelized cost of solar energy in Tennessee is approximately $0.149/kWh, compared to the current average utility rate of $11.8¢/kWh. Solar electricity costs -26% less than grid electricity at today's rates, and the gap widens as utility rates rise.
How much electricity does a solar panel produce in Tennessee?
Tennessee receives approximately 1,320 kWh of solar energy per installed kW per year. A 7 kW system produces about 9,240 kWh in its first year, enough to offset 88% of the average U.S. household's electricity consumption.

Compare Options in Tennessee

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Solar ROI in Similar States

Idaho

NPV: $1,451 · Payback: 15yr
Rate: $10.2¢/kWh · #36 ranked

Montana

NPV: $3,189 · Payback: 13yr
Rate: $11.8¢/kWh · #37 ranked

Arkansas

NPV: $3,007 · Payback: 14yr
Rate: $11.2¢/kWh · #38 ranked

Nebraska

NPV: $4,129 · Payback: 13yr
Rate: $11.8¢/kWh · #39 ranked

Mississippi

NPV: $5,436 · Payback: 11yr
Rate: $12.2¢/kWh · #40 ranked

Oklahoma

NPV: $4,345 · Payback: 11yr
Rate: $11.2¢/kWh · #41 ranked

Get Your Tennessee Solar Analysis

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