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Editor: Katerine G., Editor & Data Researcher · Research & publishing: Electric Consumer Editorial Team · Data retrieved · Sources named on this page: EIA-861, EIA retail sales, EIA-860/923, NREL PVWatts · How we got these numbers · Report an error

Solar in Tennessee: payback, sun by city and utility-scale capacity

16.4 yearssimple payback of rooftop solar in Tennessee, rank 43 of 51 (1 = shortest), $3.00 a watt, output valued at retail

Tennessee pays back in 16.4 years at $3.00 a watt (rank 43 of 51), 2.9 years longer than the middle state. 1,385 kWh per kW (rank 22) at 13.18 ¢ (rank 41 from the top): sunshine drives it. Across 5 Tennessee cities, yearly output runs from 1,335 kWh per kW in Chattanooga to 1,439 in Memphis. May is the best month at 147 kWh per kW and Jan the worst at 77. Utility-scale solar in Tennessee: 819 MW in 45 plants, 1.7% of 2025 generation; 966 MW more under construction or planned.

Tennessee: payback 16.4 years, rank 43 of 51

Solar measures for Tennessee
MeasureValueRank of 51Median state
Output of 1 kW a year, kWh1,385221,372
Home price, ¢ per kWh13.184115.37
Value of 1 kW a year$18343$222
Payback at $3.00 a watt16.4 years4313.5 years

EIA-861 (2024): 87 home net-metered systems in Tennessee, 0.0 per 1,000 accounts (rank 50), average 6.9 kW.

Sizes and prices per watt in Tennessee

Systems of 4 to 12 kW in Tennessee
Tennessee kWkWh a yearValue a yearCost at $2.50At $3.00At $3.50t CO2
45,540$730$10,000$12,000$14,0001.7
68,309$1,095$15,000$18,000$21,0002.5
811,079$1,460$20,000$24,000$28,0003.3
1013,849$1,825$25,000$30,000$35,0004.1
1216,619$2,190$30,000$36,000$42,0005.0
Payback in Tennessee by price and retail share
Tennessee $ per watt100% retail75%50%25%
$2.0011.014.621.943.8
$2.5013.718.327.454.8
$3.0016.421.932.965.7
$3.5019.225.638.376.7
$4.0021.929.243.887.7

Tennessee: 1,385 kWh/kW × 13.18 ¢ = 183 a year per kW; the 30% column (11.5 years at $3.00) is arithmetic only.

CSV

Sun inside Tennessee: 5 cities, 8% apart

Solar output in 5 cities of Tennessee
Tennessee citykWh per kW a yearAgainst state pointSun, kWh/m2 a dayPayback at $3.00Residents
Nashville1,338-3.4%4.8217.0684,298
Memphis1,439+3.9%5.1715.8629,063
Knoxville1,345-2.9%4.9416.9193,721
Chattanooga1,335-3.6%4.9917.0182,832
Clarksville1,343-3.0%4.8916.9171,897

Tennessee state point 35.80, -86.69; city points Nashville 36.17, -86.78; Memphis 35.11, -89.97; Knoxville 35.97, -83.95; Chattanooga 35.07, -85.25; Clarksville 36.57, -87.34. Panel and method: solar method.

Output by month in Tennessee cities: 12 rows
Tennessee monthNashvilleMemphisKnoxvilleChattanoogaClarksville
Jan75.788.377.785.078.4
Feb84.491.785.988.883.9
Mar111.9120.4115.9112.0112.6
Apr122.9129.7128.7129.2133.0
May140.5149.5136.1137.5138.5
Jun132.3144.9134.4121.4137.8
Jul137.5148.1130.1128.8141.9
Aug132.7138.5132.0129.6130.7
Sep123.0130.2118.2117.9125.9
Oct109.0115.0112.9110.6105.8
Nov90.098.393.096.687.6
Dec78.784.080.377.967.3

Tennessee: 5 cities, best month 150 and worst 67 kWh per kW across them.

CSV

Best and worst month in Tennessee: May 147, Jan 77 kWh per kW

Tennessee output and value by month
Tennessee monthkWh per kWPrice ¢Value per kWkWh per kW per sun unit
Jan77.012.58$9.690.82
Feb86.812.54$10.880.80
Mar116.613.37$15.590.78
Apr131.013.91$18.220.75
May146.713.73$20.140.74
Jun143.713.82$19.860.72
Jul141.213.21$18.650.71
Aug133.613.02$17.390.71
Sep122.513.29$16.280.72
Oct111.513.06$14.560.75
Nov95.913.47$12.920.79
Dec78.312.87$10.080.81

Tennessee: December to February give 17% of a year (rank 22 of 51, 1 = most winter); the best month is 1.9 times the worst. Output per unit of sun is highest in Jan (0.82) and lowest in Aug (0.71); PVWatts lowers cell output when the panel is hot, and the sun angle changes with the season. Our runs use one fixed 14% loss figure for every place, so snow or soiling in Tennessee is not modelled separately.

Utility-scale solar in Tennessee: 819 MW

Tennessee: 819 MW of operable utility-scale solar in 45 plants across 26 counties (EIA-860, 2025), rank 31 of 51; 117 W per resident, rank 42. Solar made 1.7% of Tennessee's net generation in 2025 (EIA-923), rank 38, -5.1 points against the national share. Biggest plants: Ridgely Energy Farm in Lake County, 177 MW (2025); Elora Solar in Lincoln County, 150 MW (2022); OETN1 in Obion County, 100 MW (2023). By county: Lake 177 MW, Lincoln 150 MW, Obion 100 MW, Madison 87 MW. Proposed: 424 MW under construction (9 plants) and 542 MW planned (9 plants); batteries 0 MW running and 70 MW proposed.

Utility-scale solar added in Tennessee by year
Tennessee yearMW addedCumulative share of today's MW
201930%
202021%
202192%
202217122%
202321449%
20241751%
202522678%

Net metering and CO2 in Tennessee

EIA-861 (2024): 87 home net-metered systems in Tennessee, 0.0 per 1,000 accounts (rank 50), average 6.9 kW.

6 kW in Tennessee: 8,309 kWh a year displaces 2.5 t CO2 at 0.298 kg per kWh, -0.5 t against the average state.

Tennessee utilities and solar payback

Solar payback by utility in Tennessee
Tennessee utilityHomesPrice ¢Value of 1 kWPayback at $3.00
Nashville Electric Service417,64013.47$18716.1 yr
City of Memphis380,28612.16$16817.8 yr
Middle Tennessee E M C307,37011.76$16318.4 yr
Knoxville Utilities Board193,70712.54$17417.3 yr
City of Chattanooga164,41712.32$17117.6 yr
Volunteer Electric Coop104,38712.19$16917.8 yr
Cumberland Elec Member Corp100,58512.99$18016.7 yr
City of Clarksville75,95312.77$17717.0 yr
Johnson City72,20512.41$17217.5 yr
Duck River Elec Member Corp71,34212.50$17317.3 yr
City of Lenoir62,45511.95$16618.1 yr
Upper Cumberland E M C45,56012.77$17717.0 yr

Tennessee among its neighbours

Closest states to Tennessee
Closest to TennesseePayback, yearskWh per kWPrice, ¢Utility-scale solar, points of generationMiles away
Tennessee (this page)16.41,38513.181.7-
Kentucky+0.5-45+0.06+0.5168
Alabama-3.0-2+2.92-0.7193
Georgia-2.0+28+1.55+6.0239
Mississippi-0.8-15+0.85+2.0279
Simple solar payback by state at $3.00 a wattNew Mexico: 11.2 yrTexas: 12.9 yrKentucky: 16.9 yrOhio: 14.2 yrGeorgia: 14.4 yrArkansas: 17.0 yrOregon: 17.3 yrPennsylvania: 12.5 yrMissouri: 16.0 yrNorth Carolina: 15.2 yrUtah: 14.9 yrVirginia: 14.6 yrWyoming: 14.5 yrWest Virginia: 16.2 yrNew York: 8.9 yrIndiana: 13.5 yrKansas: 13.9 yrIdaho: 18.5 yrNevada: 12.6 yrIllinois: 13.0 yrVermont: 10.7 yrNew Jersey: 10.0 yrMinnesota: 14.0 yrMaryland: 11.1 yrIowa: 15.9 yrHawaii: 4.3 yrNew Hampshire: 9.7 yrRhode Island: 7.9 yrConnecticut: 8.0 yrMontana: 17.6 yrArizona: 11.2 yrNebraska: 16.9 yrWashington: 21.6 yrSouth Dakota: 16.0 yrCalifornia: 5.5 yrAlabama: 13.5 yrWisconsin: 12.5 yrMississippi: 15.6 yrColorado: 12.3 yrOklahoma: 15.3 yrTennessee: 16.4 yrLouisiana: 16.1 yrMichigan: 11.7 yrMassachusetts: 7.7 yrFlorida: 12.7 yrAlaska: 11.3 yrNorth Dakota: 19.2 yrSouth Carolina: 13.7 yrMaine: 8.5 yrDelaware: 12.7 yrDistrict of Columbia: 9.8 yr

Tennessee against its neighbours in the payback ranking

  • -1 places, Louisiana -0.4 years against Tennessee
  • +0 places, West Virginia -0.2 years against Tennessee
  • Tennessee, rank 43: 16.4 years
  • +2 places, Nebraska +0.5 years against Tennessee
  • +3 places, Kentucky +0.5 years against Tennessee

Your numbers for Tennessee

    Limits in Tennessee

    Tennessee: with the old 30% credit (IRS, ended 2025) payback would be 11.5 years instead of 16.4, so the calculator starts at 0%. No Tennessee export rates in our data: output counts at 13.18 ¢. All limits.

    Sources for Tennessee

    More about Tennessee

    Tennessee electricity hub, Tennessee EV charging: 1,126 stations, where Tennessee ranks for rooftop solar, 16.4 years against 51 states, Tennessee calculators.

    Questions

    Solar payback in Tennessee?

    16.4 years at $3.00 a watt; 13.7 at $2.50; 19.2 at $3.50; 1,385 kWh per kW at 13.18 ¢.

    Tennessee utility-scale solar capacity?

    819 MW in 45 plants (EIA-860), 117 W per resident, rank 42; 966 MW proposed.

    Tennessee electricity from solar, what share?

    1.7% of 2025 net generation, rank 38 of 51, -5.1 points against the nation.

    Tennessee sunshine for solar panels?

    1,385 kWh per kW a year at the state point, rank 22 of 51; from 1,335 in Chattanooga to 1,439 in Memphis.

    Winter cut in Tennessee solar output?

    December to February give 17% of the year; May makes 147 kWh per kW and Jan 77.

    Where in Tennessee is solar best?

    Yes: 8% between Chattanooga and Memphis in yearly output.

    Tennessee pays half price for exports?

    Payback 32.9 years at a 50% retail share.

    CO2 displaced in Tennessee?

    2.5 t a year on 6 kW at 0.298 kg per kWh.

    Federal solar credit in Tennessee: still available?

    Ended 2025 (IRS 25D); with it Tennessee payback would be 11.5 years, not 16.4.

    6 kW system output in Tennessee?

    8,309 kWh a year, worth $1,095 at the retail price.

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    16.4 years simple payback of rooftop solar in Tennessee, rank 43 of 51 (1 = shortest), $3.00 a watt, output valued at retail