Tennessee offers moderate solar conditions with good sun hours, though TVA's low rates from hydroelectric sources moderate returns.
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Tennessee provides moderate solar conditions: With 4.5 daily peak sun hours and 11¢/kWh electricity rates from TVA's hydroelectric system, the Volunteer State offers reasonable solar fundamentals. TVA serves much of the state with net metering available.
For Nashville and Memphis residents, solar systems typically pay for themselves in 10-12 years. Good sun exposure helps offset low electricity rates from abundant hydroelectric power.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| TVA Net Metering | Full retail rate | Active |
| Property Tax Exemption | Not available | None |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $17,100 | $11,970 | ~$1,120/yr | ~10.7 years |
| 8 kW | $22,800 | $15,960 | ~$1,490/yr | ~10.7 years |