Find out if solar panels are right for your home in Tennessee.
In Tennessee, the solar energy landscape is rapidly evolving. As of 2022, the state boasts an installed solar capacity of approximately 300 MW, a significant leap from just 50 MW in 2017. This growth is part of a broader strategy to reach 1 GW of solar capacity by 2028, fueled by both residential and commercial installations.
Despite the state's heavy reliance on nuclear energy, which accounts for 43% of its primary energy source, solar is making inroads and currently comprises 3% of the energy mix.
Additionally, Tennessee ranks 27th in the U.S. for high electricity bills, making solar an increasingly attractive option for savings. Community solar programs like "Solar Farms" by TVA are also gaining traction, offering residents the opportunity to invest in solar energy without the need for personal installations.
The average price for a home solar panel system in Tennessee is $$17,820 for a 6kW system or about $2.97 per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Tennessee | $22,920 | $38,200 | $11,460 | $3.82 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $19,100 | $8,785 |
| 6 kW | $22,920 | $10,542 |
| 7 kW | $26,740 | $12,299 |
| 8 kW | $30,560 | $14,056 |
| 10 kW | $38,200 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
Whenever you are considering a sunny state for solar, we can’t say solar is a bad idea. At the end of the day you are generating your own power for free! The state experiences more sunny days than most other states.
The other factors come into play are things that are harder to control when considering your financial payback for this large investment. Since the cost of solar in Tennessee is slightly lower than the national average, that is a great starting point. On top of that, the potential for cost savings is significant, especially given that Tennessee ranks 27th in the U.S. for high electricity bills.
If the initial cost is steep for you, don’t forget about the incentives. This is one drawback for the state. While you do have the 30% federal tax credit and the Green Energy Property Tax Assessment that limits the taxable value added by a solar system, there aren’t as many incentives as some other sunny states.
Other drawbacks include not having state-wide net metering. Net metering allows solar owners to receive credits for overproduction that they can use during low production, making your system even more efficient. This is a big incentive for most homeowners because if you don’t have batteries to store that overproduced power, then it can be lost. So keep an eye out on your local policies.
Overall, while solar seems to be a good idea in Tennessee, it's essential to weigh the pros and cons carefully. It is all dependent on your financial capabilities.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Tennessee. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Beyond the 30% Federal Solar Tax Credit, you might qualify for additional incentives that can substantially cut down the cost of your solar panel setup. These perks can vary from state to state and even within local communities. Your local utility or city may offer incentives that can add up to significant savings.
The table below outlines the current incentives available in Tennessee. However, this isn't an exhaustive list. Always consult your local utility provider for other potential savings opportunities.
There are hundreds of solar companies in Tennessee. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
The Tennessee Valley Authority (TVA) is receiving backlash from environmentalists for not doing enough. TVA, a federally owned utility, has been moving away from coal but is criticized for not embracing renewable energy sources like solar and wind. Instead, it's investing in gas-burning plants and small nuclear reactors. All of which is a conversation heard across the country.
Despite reduced its carbon emissions by over half since 2005, critics argue it's not doing enough to meet the Biden administration's goal of a net-zero grid by 2035. TVA has been moving away from coal. Natural Gas and Nuclear power have significantly less carbon emissions than their coal counterpart. TVA claims that gas is the only mature technology that maintains low costs and high reliability. They worry about the limitations of solar and battery storage, especially during peak demand in winter.
The counter argument is saying they are concerned that building new gas plants commits TVA to emitting carbon for decades. Critics argue that TVA is not investing enough in proven clean technologies like solar and wind. In addition to renewable energy sources, reducing energy waste by implementing energy efficiency measures could save as much electricity as new gas plants would generate. They advocate for reducing energy waste as a first step.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Tennessee decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Tennessee can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Tennessee is $17,820 for a 6kW system or about or about $2.97 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly. Besides operation, it is recommended they are cleaned off about once a year to be free from any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Most solar panels come with a 25 to 30-year performance warranty, which guarantees a certain level of electricity production. This is also their expected life span but can continue to generate power beyond 30 years. Make sure to read the fine print to understand what's covered and what's not. Some warranties might only cover specific parts of the solar system, like the inverter or the panels themselves.
The inverter, which converts the direct current (DC) from the panels into alternating current (AC) for your home, typically has a shorter lifespan than the panels. You might need to replace it once during the lifetime of your solar system. Factor this into your long-term cost calculations.
Some homeowner's insurance policies will cover solar panels, but it's best to double-check. You may need to add a separate rider or even choose a different insurance provider to ensure your investment is protected.
For a system with no moving parts, it may seem like putting panels are your roof is a breeze. While DIY projects may be a frequent endeavor for the home handyman, DIY solar panel installation isn’t something we would recommend for most.
The biggest challenges at play are the intricate electrical work. Not only can mistakes damage the expensive system, there are also serious safety concerns for those who aren’t electricians.
We recommend at least getting a quote before you try taking on this project. You might be surprised to find that labor costs are a relatively small portion of the overall expense.
When it comes to solar panels, you'll mainly encounter two types: Monocrystalline and Polycrystalline. Both have their advantages and disadvantages, but either can meet your home's energy needs effectively. In general, Mono-panels are more expensive and more efficient. Poly-panels are slightly less efficient but more affordable. Due to the efficiency difference, you may need a few more poly-panels than mono-panels. There are a handful of other factors as well: roof weight capacity, roof area, roof angle and orientation, and of course your financial limitations.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
