Solar Calc

Solar Panel Cost in Nashville, TN (2026 Estimate)

ByIndependent solar research and calculators

Data last updated

Nashville averages about 4.6 peak sun hours a day (about average for the US, a little sunnier than the Tennessee average of 4.4), and pairs with Tennessee's approximate residential rate near 12ยข/kWh. In the model used here, an 8 kW system produces roughly 10,750 kWh a year and trims about $1,300 off annual electricity costs, paying back its net cost in about 11.7 years (versus 12.3 years for Tennessee as a whole). Local shading, roof, and your utility's export terms move the real figure.

Estimated system cost and payback in Nashville

Costs assume roughly $2.70/watt installed; the net column applies a 30% federal credit for comparison with quotes that include it. Savings use Nashville's sun hours and Tennessee's rate.

Modeled solar cost, production, savings and payback in Nashville by system size
System size Gross cost Net after 30% credit Yearly production Yearly savings Payback
6 kW $16,200 $11,300 8,060 kWh $1,000 11.7 yrs
8 kW $21,600 $15,100 10,750 kWh $1,300 11.7 yrs
10 kW $27,000 $18,900 13,430 kWh $1,600 11.7 yrs

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

Net metering and utilities around Nashville

Almost the entire state buys its power from the Tennessee Valley Authority, and TVA does not allow its local power companies to offer traditional net metering. Instead, a rooftop system reduces the electricity you pull from the grid at your normal retail rate, while any surplus that flows back is purchased separately at TVA's avoided-cost rate through its Dispersed Power Production arrangement. The older Green Power Providers program, which paid a premium for all generation, closed to new participants at the end of 2019 and is not coming back.

The local power companies that actually bill you include Nashville Electric Service, Memphis Light, Gas and Water, EPB in Chattanooga, Knoxville Utilities Board, and Middle Tennessee Electric, plus dozens of smaller municipal systems and cooperatives, all buying wholesale power from TVA. Retail rates run below the national average, which stretches the payback period for solar compared with the coasts. Several local power companies have also added grid access or fixed charges that do not shrink when you generate your own power, so a system that fits your daytime consumption pattern will perform better than one built around selling surplus.

For the full state picture, including incentives, property and sales tax treatment and the complete net metering notes, see the Tennessee solar cost page.

Other Tennessee cities

Sources and methodology

Every figure on this page is computed from two published inputs (average peak sun hours and the state's average residential electricity rate) plus the documented assumptions on the methodology page. It is a transparent model, not a survey of installer quotes. Inputs last reviewed .