Solar & Net Metering Policy
Tennessee does not currently have a statewide net metering policy. Solar owners should check with their specific utility for any available compensation programs. Tennessee does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations.
Net Metering Notes
No state net metering mandate; TVA's Green Connect programs focus on contractor quality rather than retail netting.
Does Tennessee have net metering?
Tennessee does not have a statewide net metering policy. Contact your local utility to find out if they offer any solar compensation programs or alternative billing arrangements.
What solar tax credits are available in Tennessee?
Tennessee does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in Tennessee?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in Tennessee for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in Tennessee?
Tennessee does not have a statewide solar property tax exemption. The added value from a solar installation may be included in your property assessment. Check with your county assessor for local rules.
Is there a sales tax exemption for solar in Tennessee?
Tennessee does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does Tennessee have an SREC market?
Tennessee does not currently have an active SREC market. Solar owners in Tennessee cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in Tennessee?
Statewide utility rebates are not currently available in Tennessee. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
Tennessee Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.