Tennessee Net Metering Rates 2026
Tennessee solar exports are credited under avoided-cost buyback, worth roughly ~25–50% of retailof the retail electricity rate. Here's exactly how it works, which utilities offer it, and what it means for your payback.
How Net Metering Works in Tennessee
When your panels produce more electricity than your home is using, the surplus flows back onto the grid and your meter records the export. Tennessee utilities credit those exported kilowatt-hours at the utility's wholesale avoided-cost rate, well below retail. You draw that credit back down at night or on cloudy days, so you only pay for your net consumption across the billing cycle.
Because Tennessee lacks a full retail-rate mandate, the value you capture depends heavily on your utility's specific buyback tariff — read your rate schedule carefully before sizing a system.
What It's Worth: ~25–50% of retail of Retail
The single biggest driver of solar payback is how much your utility pays for exported energy. Tennessee's avoided-cost crediting pays well below retail, which lengthens payback and makes self-consumption (and batteries) more important.
The average TN homeowner reaches payback in 9.6 years and nets $28,900 over 25 years with these rules in effect.
Tennessee Utilities Offering Net Metering
The major utilities operating in Tennessee are TVA, Nashville Electric, Memphis LG&W. Net metering terms — true-up dates, monthly fees, and credit carryover — vary by provider, so confirm the current tariff with your specific utility before signing an installation contract.
Tennessee Net Metering FAQ
What will net metering save you in Tennessee?
Our calculator factors Tennessee's avoided-cost buyback into your payback and 25-year savings — using your actual electric bill.