Tennessee Solar Guide: Incentives & Net Metering (2026)

Sizing a solar system in Tennessee

While comprehensive statewide median cost figures for residential solar aren't reliably published for Tennessee, we can still estimate what size system a typical home might need. The average Tennessee household uses around14,347 kWh of electricity annually. Offsetting that much usage entirely would require a solar array of about 10.56 kW, though the exact size depends heavily on roof angle, shading, and local weather patterns.

In a state where utilities compensate you for excess generation at a fraction of retail electricity rates, designing a system simply to offset 100% of your usage isn't always the most cost-effective move. Many homeowners find it more lucrative to size the system closely to their daytime usage, or invest in a battery storage system so they can use their own clean energy during the evening.

Net metering and grid exports

Tennessee does not have a statewide net metering policy, and the Tennessee Valley Authority (TVA) — which regulates the vast majority of the state's power — does not offer traditional retail-rate net metering. Instead, homeowners with solar can sell excess generation to TVA under the Dispersed Power Production (DPP) program, which credits exports at an avoided-cost rate that is substantially lower than retail electricity rates. Because export rates are low, pairing solar with battery storage to maximize self-consumption is generally the most cost-effective strategy for Tennessee residents. Appalachian Power, which serves a small fraction of the state, is regulated by the Tennessee Public Utility Commission (TPUC) and does offer net metering, but this does not apply to the vast majority of Tennessee.