Solar Opportunities - Tennessee

Solar Offerings and Incentives

Homeowners in Tennessee who install solar equipment are eligible for the state and federal tax breaks described below.

State and Local Incentives

Green Energy Property Tax Assessment

Tennessee offers a special ad valorem tax assessment for certified green energy production facilities. The property assessed value may not exceed a third of total installed costs. Eligibility requirements and more information can be found here.

Federal Residential Renewable Energy Tax Credit

A federal-level investment tax credit (ITC) is now available to consumers wanting to purchase small wind turbines, solar panels, or geothermal heat pumps.  The ITC, written into law through the Emergency Economic Stabilization Act of 2008, is available for equipment installed from Oct. 3, 2008 through Dec. 31, 2016. The credit covers 30% of the equipment cost, though some technologies have a credit cap of $2000. More details and a complete list of eligible technologies can be found here.