Net Metering in Tennessee (2026)
Tennessee uses No statewide net metering. Tennessee sits in TVA territory with no true net metering; excess generation is bought at low wholesale rates, so self-consumption drives value.
| Policy type | No statewide net metering |
|---|---|
| Export compensation | No statewide requirement — depends on your utility |
| Retail electricity rate | ~15¢/kWh |
| Est. annual production per kW | ~1,350 kWh/kW/yr |
Policy status reflects the statewide standard as of 2026. Actual export rates and program caps vary by utility — confirm with your provider.
What this means for your payback
With no statewide net-metering guarantee in Tennessee, the value of exported solar depends entirely on your utility or retail provider, and many credit exports well below the ~15¢/kWh retail rate. That tilts the math toward sizing your system to your daytime usage and adding a battery so you store cheap self-generated power instead of exporting it for little.
2026 reality check: the 30% federal tax credit for purchased home solar ended Dec 31, 2025. With that gone, net metering policy and any Tennessee state incentives are now the main levers on your solar ROI. Run the numbers on your actual utility bill before signing anything.
See full solar costs & payback for Tennessee
Solar panel cost in Tennessee →Tennessee net metering FAQ
Does Tennessee have net metering?
Not as a statewide guarantee. Tennessee has no mandated net-metering program, so whether (and how much) you're paid for exports is set by your utility or retail electricity provider.
What is Tennessee's solar export rate?
Below retail. Tennessee sits in TVA territory with no true net metering; excess generation is bought at low wholesale rates, so self-consumption drives value. As a rule, plan your system around using power on-site rather than banking exports at 15¢/kWh.
Do I need a battery to make solar worth it in Tennessee?
A battery helps a lot here. Because Tennessee pays less than retail for exports, storing midday solar and using it at night captures far more value than exporting it, shortening payback.
Is solar still worth it in Tennessee now that the federal tax credit is gone?
Often, yes. The 30% federal credit for purchased systems ended Dec 31, 2025, so Tennessee's no statewide net metering plus any state incentives are now the main drivers of payback. At ~15¢/kWh and about 1,350 kWh produced per kW each year, run the numbers on your own bill before deciding.