Tennessee Solar Incentives and Rebates
Tennessee has many incentives and rebates available for homeowners and businesses looking to install solar panels on their property. These incentives are designed to help offset the cost of installing solar panels, making it more affordable for residents to transition to clean energy.
The Federal Investment Tax Credit in Tennessee
One of the most significant incentives available to residents of Tennessee is the Federal Investment Tax Credit (ITC). The ITC is a federal tax credit that allows homeowners and businesses to deduct 22% of the cost of installing solar panels from their federal taxes. This can significantly reduce the overall cost of installing solar panels, making it more affordable for residents to invest in this clean energy technology.
The State Tax Credit in Tennessee
It is important to note that there is no State Tax Credit in Tennessee, but you can find more information about the clean energy financing program at https://www.tn.gov/environment/program-areas/energy/state-energy-office–seo-/programs-projects/programs-and-projects/clean-energy-financing.html
State-wide Solar Initiatives in Tennessee
Additional City & Utility Rebates – Many cities and utilities in Tennessee offer additional rebates to residents who install solar panels on their property. These rebates can vary depending on the location and the utility, so it is important for residents to check with their local city or utility company to see what rebates are available.
Knoxville Utilities ($400 rebate when install and EV charger) – The Knoxville Utilities Board offers a $400 rebate to residents who install both solar panels and an electric vehicle (EV) charger on their property. This rebate is designed to encourage residents to invest in clean energy technologies and to support the growth of electric vehicles in the state.
Tennessee does not impose a corporate income tax on businesses that invest in solar energy technology, which makes it an attractive location for businesses looking to invest in solar technology. Additionally, the state does not have any specific rules on the Modified Accelerated Cost Recovery System (MACRS), which allows businesses to depreciate the cost of solar energy equipment over a shorter period of time.
State-wide Tax Exemptions in Tennessee
Another important incentive available to residents of Tennessee is the Green Energy Property Tax Assessment. This program limits how much property tax can be assessed on solar energy systems, allowing residents to save money on their property taxes. Under this program, only 12.5% of the value of the solar energy system can be taxed.
State-Specific Laws on Solar Easements in Tennessee
There are currently no state-specific laws on Solar Easements in Tennessee. A Solar easement is a legal agreement between two property owners that allows one property owner to have access to sunlight on their property, typically for the purpose of installing solar panels. While Tennessee does not have specific laws regarding solar easements, property owners can still enter into these agreements voluntarily with their neighbors.
Net Metering in Tennessee
The power generated by solar panels in Tennessee is credited through a process called net metering. Net metering is a system where any excess solar power generated by the homeowner is sent back to the grid and credited to the homeowner’s account. When the homeowner is using more power than the solar panels are generating, the homeowner can draw power from the grid and use the credits they have accumulated to offset the cost of that power.
Benefits of Going Solar in Tennessee
Going solar in Tennessee has many benefits, including reduced electricity bills, increased property value, improved home resale value, and tax incentives. Additionally, homes with solar panels are known to have higher property values and to sell more quickly than homes without solar panels. The tax incentives, such as the Federal Investment Tax Credit and the Green Energy Property Tax Assessment, further make the installation of solar panels more affordable and hence more attractive.
Tennessee has many incentives and rebates available for homeowners and businesses looking to install solar panels on their property. These incentives are designed to help offset the cost of installing solar panels, making it more affordable for residents to transition to clean energy. With the help of these incentives, Tennessee can continue to promote clean energy and reduce its dependence on fossil fuels.
FAQsWhat types of solar energy are available in Tennessee?
Solar energy in Tennessee comes in two forms: solar thermal and solar photovoltaics. Solar thermal systems use the sun’s heat to produce hot water or steam, while solar photovoltaics convert sunlight into electricity. Find out more about the types of solar systems at SolarEmpower.
Is solar energy cost effective in Tennessee?
Yes, solar energy is very cost effective in Tennessee. The state offers net metering and other incentives, which help to reduce the cost of solar installation. Furthermore, Tennessee is located in a sunny climate, allowing for more efficient solar energy systems.
Are there any solar energy rebates or incentives in Tennessee?
Yes, Tennessee offers several solar energy rebates and incentives. These include the Tennessee Solar Tax Credit, the Solar Value-Added Tax Exemption, and the Tennessee Solar Access Program.
Does Tennessee have any solar energy regulations?
Yes, Tennessee has several solar energy regulations in place. These include the Solar Panel Installation and Use Act, which regulates the installation and use of solar panels in the state, and the Tennessee Renewable Energy and Energy Efficiency Act, which promotes the development of renewable energy sources.
Are there any solar energy installers in Tennessee?
Yes, there are many solar energy installers in Tennessee. These include large national companies, as well as smaller local companies. Read expert reviews of verified solar installers in Tennessee at SolarEmpower.