Solar Companies in Tennessee

Tennessee receives moderate sunshine with about 4.5 peak sun hours daily and benefits from relatively low installation costs. The Volunteer State's solar market is shaped primarily by the Tennessee Valley Authority (TVA), which provides wholesale power to local utilities across the state.

The TVA's Green Connect and distributed generation programs affect solar compensation for most Tennessee homeowners, as local utilities including Nashville Electric Service, Memphis Light Gas & Water, and Knoxville Utilities Board purchase wholesale power from TVA. Tennessee exempts solar equipment from sales tax, but there is no state solar tax credit and no statewide net metering mandate.

Nashville, Memphis, and Knoxville are the main residential solar markets. With low electricity rates around $0.11/kWh and limited utility compensation for excess generation, Tennessee homeowners typically face payback periods of 11-14 years, though the federal tax credit and falling costs continue to improve the outlook.