As your fellow Tennessee resident, I‘ve put solar panels on the roof of my Nashville home to take control of my electricity bills. And I want to share the insights from my research to help you decide if home solar makes sense financially based on your own situation.
Across this comprehensive guide, I‘ll break down all the critical factors using real-world Tennessee examples and data so you can determine if now is the right time to harness the sun‘s free power.
Current Landscape of Solar Energy in Tennessee
While Tennessee lags most states in overall solar development and policy support, adoption has started accelerating over the past 5 years:
- Over $800 million invested in Tennessee solar between 2015 to 2020
- 400 megawatts of new solar installed in 2022 – a top 10 rate nationwide
- Ranked 36th currently amongst states in overall solar penetration
Driving this momentum is solar equipment costs dropping 90% since 2010 while utility rates continue rising 5% yearly. The expanding savings potential is enticing homeowners and businesses despite minimal state incentives.
Calculating Your Potential Solar Savings
Typical Tennessee Home Electricity Bill: $130/month
To size your potential system appropriately, we‘ll need to understand your home‘s actual electricity consumption. Based on your prior 12 months of electric bills, determine:
- __Your average monthly kilowatt hour usage:___ kWh
- __Your average daily kilowatt hour usage:___ kWh
Next we‘ll factor in your city‘s solar resources using this Tennessee sunlight data:
| City | Peak Sun Hours |
|---|---|
| Memphis | 5.0 |
| Nashville | 4.6 |
| Knoxville | 4.1 |
| Chattanooga | 4.5 |
Calculate the minimum solar array size to fully offset your electricity usage:
- Your Avg Daily kWh Usage: ___ kWh
- Divided by Peak Sun Hours: ___
- Equals Solar System Size: ___ kW
A system size of 8-11 kW is typical for the average TN home. At $2.49 per Watt:
- 8 kW System = $19,920
- 11 kW System = $27,390
After claiming the 30% federal tax credit of $5,976 to $8,217 your out-of-pocket drops to:
- 8 kW Net Cost = $13,944
- 11 kW Net Cost = $19,173
Your Potential System Size and Cost:
{{System Size: kW }}
{{Gross Cost: $ }}
{{Net Cost After ITC: $___ }}
Calculating Your Tennessee Solar Return on Investment
Over the 20-25 year lifespan of a solar system in Tennessee, you can expect to produce savings between $23,000 to $28,750. Specifically for your sized system:
Estimated Lifetime Savings: $___
Comparing that return to your net equipment cost allows us to determine your solar panel investment payback period.
- Net Cost: $___
- Lifetime Savings: $___
- Payback Period = Net Cost / Annual Savings
= $ / $ per year
= ___ years
The payback timing for Tennessee typically lands around 11 years. So if your system lasts 25 years, you‘ll receive 14 years of pure profit from the sun‘s free fuel!
Solar Makes Financial Sense in Tennessee
As you can see from the numbers for your specific situation, going solar allows Tennessee homeowners like us to take back control of electricity expenses. By locking in free power generation from the sun over the next 25 years, we can avoid costly 5% annual utility rate hikes.
And with equipment prices and financing options making solar more affordable than ever in Tennessee, now is a prime time to start your transition to energy independence!
Let‘s connect to discuss your personalized solar analysis and plan in more detail. I‘m excited to help a neighbor take this important step while the great incentives last!
Jason Miller
Certified Tennessee Solar Consultant
