Tennessee Clean Energy Incentives 2026 — Solar, EV & Heat Pump Savings
Tennessee residents may access state and utility clean energy incentives including HEEHRA/HEAR rebates for heat pumps and HOMES energy efficiency rebates. Note: The federal 25D solar ITC, 25C heat pump credit, and 30D EV tax credit all expired in 2025. State and utility-specific incentives may still reduce payback periods — check your state's programs for the latest details.
$14,000+
Max potential savings
1
Total incentives
12.2¢
Avg rate / kWh
17 yrs
Solar payback
$10,000
25-yr solar savings
0.6%
EV fleet share
Good ☀️☀️
Solar potential
Heat Pump Incentives in Tennessee
HEAR Rebate (High Efficiency Electric Home Rebate)
Up to $14,000
Point-of-sale rebate up to $8,000 for heat pumps, $1,750 for HPWHs, $4,000 for panel upgrades. Income-based.
Eligibility: Households < 150% of Area Median Income. Program administered by state energy offices.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $10,000
We may earn a referral commission through EnergySage, at no cost to you.
Is Solar Worth It in Tennessee?
Solar is viable in Tennessee. With electricity at 12.2¢/kWh and 4.5 peak sun hours per day, a typical 8 kW system pays back in 17.0 years and saves $10k over 25 years. Note: The federal 25D solar ITC expired December 31, 2025.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
State and utility incentives may still reduce net system cost. The federal 25D ITC expired Dec 31, 2025 — check your state's energy office and DSIRE.org for active programs in Tennessee.
Watch Out For
Below-average electricity rates reduce the financial benefit of solar vs. high-rate states.
Solar Cost & Savings in Tennessee (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $21,760 |
| Net install cost | $21,760 |
| Annual energy savings | $1,282 |
| Simple payback period | 17 years |
| 25-year net savings | $10,000 |
The federal residential solar tax credit (Section 25D) expired Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Estimates based on 2.72/W avg install cost, 4.5 peak sun hrs/day, and 12.2¢/kWh rate with 2.5%/yr escalation. Individual results vary.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $10,000
We may earn a referral commission through EnergySage, at no cost to you.
How to Go Solar in Tennessee: Step-by-Step
- 1
Calculate your energy usage
Review 12 months of electricity bills to find your annual kWh usage. Tennessee's average is approximately 11640 kWh/year.
- 2
Get 3+ quotes from local installers
Use EnergySage, DSIRE, or your state energy office to find certified installers. Compare $/W pricing and warranty terms.
- 3
Check state and utility incentives
Visit DSIRE.org to find current state and utility solar incentives in your area. The federal 25D solar ITC expired Dec 31, 2025. If you installed in 2025, file IRS Form 5695 with your 2025 return to claim it.
Frequently Asked Questions — Solar & Clean Energy in Tennessee
Is solar worth it in Tennessee in 2026?
At 12.2¢/kWh and 4.5 peak sun hours/day, solar payback in Tennessee is approximately 17.0 years with 25-year net savings of ~$10k. Note: The federal 25D solar ITC expired December 31, 2025. State and utility incentives may still apply — check DSIRE.org for current Tennessee programs.
What solar incentives are available in Tennessee?
The federal 25D solar ITC expired December 31, 2025 and is not available for 2026 installations. If installed in 2025, you may still claim it on your 2025 tax return. Check DSIRE.org and local utilities for any remaining rebate programs.
How much does solar cost in Tennessee in 2026?
The average installation cost in Tennessee is approximately $2.72/W, or $21,760 for an 8 kW system. The federal 25D ITC expired Dec 31, 2025, so net cost before any remaining state incentives is ~$21,760.
Recommended Products for Tennessee
Ford BlueOval City + VW Chattanooga · TVA programs
Calculate Your Tennessee Savings
Use our free calculators with Tennessee's electricity rate (12.2¢/kWh) and gas prices ($1.38/therm) automatically applied.
Browse Other States
Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE, IRS, and state energy offices. Electricity rates: EIA Electric Power Monthly (Feb 2026). Solar production: NREL PVWatts v8. Install costs: EnergySage National Market Report Q4 2025. Rate escalation: 2.5%/yr (20-yr EIA avg). Last updated February 2026. Always verify current amounts with the administering agency.