How much do solar panels cost in Tennessee?

As of January 2025, the average solar panel system costs $3.28/W including installation in Tennessee. For a 5 kW installation, this comes out to about $16,388 before incentives, though prices range from $13,930 to $18,846. After the federal tax credit, the average price drops by 30%. You'll probably pay even less than what we show here.

How much does a 5 kW solar system cost in Tennessee?

While a 5 kW system will only cost you $16,388 in Tennessee, doubling the system size effectively doubles the price, so you'll pay about twice that for a 10 kW system. The higher the price tag, though, the more you'll get back as a credit towards your federal tax bill. Are solar panels worth it in Tennessee?

Do solar panels pay off in Tennessee?

Based on feedback from dozens of solar customers in Tennessee, solar panel investments tend to pay off over time. Assuming an upfront purchase, it takes about 12.5 years to break even (when your savings with solar panels make up for the cost). The average solar panel installation costs $3.26 per watt in Tennessee.

Are solar panels a good investment in Tennessee?

In Tennessee, solar panels are a financially intelligent investment, with the average solar customer saving over $25,000 on energy bills after the panels pay for themselves. Most customers still wonder about the total cost of solar panel systems.

Is Solar worth it in Tennessee?

Several residents have told us that solar is worth it in Tennessee. For most, it’s about saving on electric bills. Over 25 years, Tennessee homeowners with solar panels avoid $51,774 in utility costs on average. For others, it’s about gaining energy independence. “Whenever we have storms, it's nice to have a backup,” David in Knoxville told us.

How much does a solar system cost?

This is lower than the average price of residential solar power systems across the United States, which is currently $3.03 per watt. The size of a solar panel system also plays a role in how much the installation will cost. Larger solar installations typically have a lower cost per watt because the panels can be purchased at a ‘bulk price.’