Tennessee’s 2023 Solar Tax Credits and Rebates Guide

Tennessee’s-2023-Solar-Tax-Credits-And-Rebates-Guide

In Tennessee, the average cost of a solar energy system after the federal solar investment tax credit is $20,916, slightly higher than the national average of $16,715. 

Despite the increased cost, residents can leverage a property tax break to alleviate some of the financial burden associated with adopting solar energy.

Tennessee Federal Solar Incentives

The federal solar investment tax credit (ITC) plays a pivotal role in making solar adoption more affordable in Tennessee. 

Those installing a residential solar panel system by the end of 2032 can benefit from a 30% federal income tax credit, encompassing the total system cost, including equipment, labor, and permits.

In Tennessee, where the average solar system costs $29,880, you can benefit from a $8,964 credit when filing your taxes. 

It’s important to note that the solar tax credit isn’t a rebate; instead, you must claim it when filing federal taxes in the operational year of your solar panel system.

 Utilizing Form 5695, the nonrefundable credit can be carried over to the following tax year if not fully used.

In Tennessee, the sole statewide residential solar incentive is the Green Energy Property Tax Assessment. 

To be eligible, homes must attain certification as green energy providers. 

This incentive isn’t exclusive to residential properties; it extends to commercial and industrial projects as well, with incentive amounts varying based on the specific sector involved.

Read Also: America’s Top 10 Richest States Revealed

Net Metering in Tennessee

Tennessee’s-2023-Solar-Tax-Credits-And-Rebates-Guide
In Tennessee, the average cost of a solar energy system after the federal solar investment tax credit is $20,916, slightly higher than the national average of $16,715.

In Tennessee, if your solar system produces excess energy, you can potentially sell it to your local electric company through net metering. 

Notably, the state lacks mandated net metering policies, meaning electric companies aren’t obligated by state laws to provide net metering.

However, some local companies, like Appalachian Power, may still offer net metering programs.

Read Also: SNAP Recertification: Know Your State’s Deadline for December Renewal

Leave a Reply

Your email address will not be published. Required fields are marked *