Tennessee - Energy tax credit, solar rebates and incentives

Tennessee Renewable and Solar Energy Incentives

Generation Partners Program – TVA (Residential/Commercial)

The Tennessee Valley Authority along with affiliated utility companies grant a power generation incentive for homeowners and commercial businesses that utilize renewable energy systems.

Use and Sales Tax Credit for Renewable/Clean Energy Manufacturing Facilities (Commercial)

A tax credit is offered to commercial businesses that produce/manufacture renewable or clean energy technologies.  Clean energy technologies are qualified as those that utilize geothermal, hydrogen, hydropower, landfill gas, solar, wind, or biomass-derived energy with the purpose to mitigate environmentally harmful waste output.

Property Tax Exemption for Wind Energy Systems (Commercial)

Commercial wind energy systems in Tennessee receive a special property tax exemption, administered by the Tennessee Comptroller of the Treasury.

Federal Energy Tax Credit (Residential/Commercial)

Taxpayers are granted a personal tax credit of 30% of the total expenses, which include installation of residential solar-electric systems, solar thermal systems, fuel cells and labor expenses.  Residential wind energy installations and geothermal pumps are also subject to a tax exemption.  

Federal Energy Conservation Subsidy Exclusion (Residential)

Energy-Efficient Mortgages (Residential)

Example: 4KW System – Residential Installation Cost

Average Electric Bill: $250/mo
Projected Annual Bill Escalation: 5%
Cost Per Watt: $6.50

- Estimated System Cost: $26,000
- Federal/State Tax Credit: $7,500
- State/Utility Rebate: $1,000
- Net Cost: $17,500
- Cumulative Lifetime Savings (25 Years): $22,121
- Investment Return: 9.8%

Savings of 33% on the total cost of your solar system through incentives

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Tennessee Energy Tax Credit
Tennessee Energy Tax Credit
TVA Generation Partners Pgm
Solar Panels as investment