Tennessee Solar Power Rebates, Tax Credits, and Incentives

Tennessee State Picture

Solar Legislator Score:

Home to Elvis and the great Nashville music scene, Tennessee is also known for its mountains and rivers. With a little bit of everything under the sun, how is Tennessee harnessing the power of clean energy to preserve the environment for years to come? Well, not much is happening yet, but read on to find out.

STATE LEGISLATION

In the past 2 years Tennessee’s legislative record on solar energy has been non-existent to be polite. Governor Bredeson hasn’t even mentioned the words “solar energy” in the past two years. So, for the moment, the solar energy market is all volunteer in Tennessee.

NET-METERING

As of 2007, Tennessee doesn’t have a net metering policy, so it’s a utility company free for all.

STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, AND UTILITY INCENTIVES

It’s hard to find programs for solar energy in Tennessee’s clean energy wilderness, but here’s a list of rebates and incentives for renewable energy in Tennessee:

Production Incentive

* TVA - Green Power Switch Generation Partners Program

State Grant Program

* Tennessee Clean Energy Technology Grant

State Loan Program

* Local Government Energy Loan Program

* Small Business Energy Loan Program

Utility Loan Program

* Bristol Tennessee Electric Service - Energy Savings Loan Program

Utility Rebate Program

* Cleveland Utilities - Energy Efficient Home Rebate Program

* Clinton Utilities Board - Energy Efficient Water Heater Rebate Program

* Cookeville Electric Department - Energy Right Residential Rebate Program

* Cumberland EMC - Energy Right New Homes Program

* Electric Power Board of Chattanooga - Builders & Developers Energy Right Home Program

* Electric Power Board of Chattanooga - Residential Energy Right Water Heater Program

* Gibson Electric Membership Corporation - Energy Right New Homes Program

* Jackson Energy Authority - Builders & Developers Energy Right Home Program

* Lawrenceburg Utility Systems - Residential Energy Right New Homes Program

* Meriwether Lewis Electric Cooperative - Residential Energy Efficiency Rebate Program

* Middle Tennessee EMC - Residential Energy Efficiency Rebate Program

* Milan Public Utilities - Builders & Developers Energy Right Home Program

* Murfreesboro Electric Department - Energy Right New Home Rebate Program

* Murfreesboro Electric Department - Energy Right Water Heater Rebate Program

* Sequachee Valley Electric Cooperative - Residential Energy Right Rebate Program

* Sevier County Electric System - Energy Efficient Water Heater Rebate Program

* Southwest Tennessee EMC - Residential Energy Efficiency Rebate Program

* Upper Cumberland EMC - Residential Energy Efficiency Rebate Program

* Volunteer Energy Cooperative - Energy Right New Home Program

* Volunteer Energy Cooperative - Residential Energy Efficiency Rebate Program

* Winchester Utilities - Residential Energy Right Rebate Program

EXAMPLE 3KW SYSTEM – HOME INSTALLATION COST

Installing a typical 3kW solar electricity system in Memphis would cost about $54,000, but the federal tax credit of $2,000 does apply. The state solar rating is Good, so it would take about 30 years for the system to pay for itself. The real savings however, comes from the fact that you’d be saving over $850 each year on your utility bills while raising your property value over $10,000. Lastly, but most importantly, you’d be keeping 160 tons of greenhouse gasses out of the atmosphere.

Building Type:

Residential

State & County:

TN - Shelby

Utility:

Memphis City of

Utility Type:

Municipal Utility

Assumed Average Electric Rate: Please check against your bill

$0.0770 /kWh

Assumed Average Monthly Electricity Usage: Please check against your bill

1,300 kWh/Month

Your Average Monthly Electricity Bill: (Assumed rate x average monthly usage)

$100 / Month

Tiered Rates Apply:

No

Time-of-Use Metering Offered:

No

Net-Metering Available:

No

ESTIMATED SYSTEM SIZE

The system size best for your situation will vary based upon product, building, geographic and other variables. We encourage you to work with a Solar Pro who can better estimate the system size best for your situation. We estimate your building will need a system sized between 4.80 kW and 7.20 kW of peak power. This estimate assumes the mid-point of this range.

Solar Rating:

Good (4.98 kWh/sq-m/day)

Solar System Capacity Required:

6.00 kW of peak power (DC watts)

Roof Area Needed:

600 sq-ft

ESTIMATED SYSTEM COST

This is only an estimate based upon many assumptions. Installation costs can vary considerably. We encourage you to work with a Solar Pro who can provide you with a more detailed cost estimate. We estimate that a 6.00 kW peak power system will cost between $43,200 and $64,800. This estimate assumes the mid-point of this cost range.

Assumed Installation cost:

(before rebates, incentives or tax credits).

$54,000 assuming $9 /watt

Expected Memphis City of Utility Rebate:

($0)

Expected TN State Rebate State incentive does not apply to this utility

($0)

TN State Tax Credit/Deduction

($0)

Federal Tax Credit:

(Installation type: Residential )

($2,000)

Income Tax on Tax Credit:

$0

YOUR ESTIMATED NET COST:

$52,000

Monthly Payment (6.5% apr, 30 years):

$329

SAVINGS & BENEFITS

Increase in Property Value:

$10,360

Exempt from Property Tax:

No

Accelerated (5 yr) Depreciation:

(Installation type: Residential )

No

First-year Utility Savings: Since this is not a business application, these savings are in after tax dollars. So, your realized savings may actually be higher!

$518

Average Monthly Utility Savings:

(over 25-year expected life of system)

$72

Average Annual Utility Savings:

(over 25-year expected life of system)

$869

25-year Utility Savings:

$21,736

Return on Investment (ROI):

(with Solar System ave. cost set as asset value)

101%

Return on Investment (ROI):

(with Property appreciation set as asset value)

508%

Years to Break even:

(Includes property value appreciation)

29 years

Years to Break even:

(Assuming no property value appreciation)

36 years

Greenhouse Gas (CO2) Saved: over 25-year system life

160.0 tons (320,000 auto miles)

CONSENSUS

Well volunteers, your legislature has let you down on solar energy and other renewable power sources. It’s time to get down to business and make solar power a priority in Tennessee. Maybe it’s time for new faces in the capitol; let’s get some people who will take action to protect the environment and promote clean energy.

Click here to have multiple solar installers bid to upgrade your Tennessee home or business.

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10 comments.

Bill Hooker
Comment on March 21st, 2008.

I’m so frustrated!! I was inspired by watching a PBS broadcast the other night indicating the cost for installing solar for the average home was $15,000-$18,000. Now after reading your site it look to be about triple that cost.

While I am interested in solar, the cost still seems prohibitive. Too bad our state offers no incentives and the federal government offers little as well. I was impressed with Germany’s efforts. The U.S. just lags behind, oblivious to what the world and science is telling us. It’s so sad…and maddening.

Comment on March 24th, 2008.

Hi Bill,

Contact an Installer and get a quote. It won’t be much pain an suffering, and at least you’ll know for sure so you can make an informed decision if you want to do it or not. These numbers above aren’t 100% accurate, although they will be in the next two months or so.

Jack Bishop
Comment on May 1st, 2008.

Tennessee was just rated one of the most wasteful energy states. I have been attempting to wake up our local elected officials in Memphis and Shelby County to the need for incentives for renewable energy sources. So far they have fallen on deaf ears. Like wise the our state government is still in the 19th century. I have proposed the Memphis Pyramid be converted to a solar power station. The all glass exterior is perfect. This could generate electricity that could be sold back to the grid creating a new revenue stream for local government. No go to our flat earth officials.

Julio
Comment on June 2nd, 2008.

Hi,
I,ve got a question.
To install a PV system in Teennessee state i,ve read you can subscribe “green power switch generation partners” throught TVA.
This is my question:
Can i install a PV system bigger than my home energy needs?
If yes, can i sell all this energy to TVA?
Thanks for all and sorry about my english, as you can see im not from USA, but im so interesting in solar energy market.
Cheers.

Andrew
Comment on June 11th, 2008.

Why should the government offer incentives any way. If you want to use solar go for it. If you can’t and don’t like the idea of good clean coal - turn off your lights and AC and truley live in the 19century.

Michael
Comment on June 12th, 2008.

Julio,

First off, call up TVA and talk with someone from Generation Partners. I can’t give you names, because that would be rude of me. Size is limited too 0.5 to 50 kW AC. You can produce as much as you want. I also beleive that they are trying to put a bill through Senate that increases the Residential Solar and Fuel Cell Tax Credit from 2000, to 4000. I do some work as a newbie energy consultant. Email me and I can fill in some spreadsheets for you so you can see ROI and what not.

Ben
Comment on June 14th, 2008.

god what a frustrating state! i just moved to the nashville area from missouri (which wasn’t much better), and i am shocked to see how little concern there seems to be for sustainability and ecology here. my wife and i are actively looking for land to buy so we can build our eco-house… i am very sad to see that we won’t be getting any state help to make solar power financially feasible for us.

well, i hear that over the next two years the cost of solar tech will drop dramatically, making it accessible to practically anyone… lets keep fingers crossed that corporations don’t hijack the tech and hold it back from the public for the sake of the bottom line and keeping investors happy… there is just too much at stake here!

Trey
Comment on June 19th, 2008.

Does anyone know the best way to find a contractor capable of sealing and weatherstripping an old house in Memphis. I know I can go to the phone book, but I wanted to find someone who knew what they were doing instead of throwing up some weatherstripping and saying it was done.

Kevin
Comment on June 26th, 2008.

Andrew: The state and Federal governments should offer an incentive because you’ve spent all of your money building your own energy system and no longer burn up all of the coal. Less coal, less emissions, less carbon footprint, less waste, less of everything bad. But something tells me you’re a non-believer.

Matt
Comment on June 27th, 2008.

What’s with the incredibly high estimates from this solar calculator on this and every other solar install website I hit?? I too hear all the time about $10,000 to $20,000 for an install, then this calculator keeps coughing up $60,000 (!!!!!) for a small system supplying half of small house energy needs. OK either all these news reports are wrong or this calculator is a unbelievably harmful POS that is actually DISCOURAGING everyone from going solar. Which is it?

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