Avoided Cost

Net Metering in Tennessee

Current NEM policy, export rates, and impact on solar payback for Tennessee homeowners.

NEM Export Rate

$0.040

per kWh

Avg Retail Rate

$0.108

per kWh

% of Retail

37%

compensation

Policy Status

Active

since 2019-01

System Limit

Up to 50 kW

max eligible

NEM Policy Details — Tennessee

How Tennessee compensates your excess solar generation

Avoided CostActive

Tennessee Valley Authority (TVA) offers Generation Partners program at avoided cost. No retail net metering. Very limited export compensation.

NEM Rate$0.040/kWh
Retail Rate$0.108/kWh
Savings Gap-6.8c/kWh
Annual True-UpYes

Source: TVA, DSIRE · Effective: 2019-01

Calculate Your NEM Savings in Tennessee

$

NEM Rate Comparison

$0.00Tennessee: $0.040$0.108 (retail)

Tennessee's NEM rate is 37% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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Written & reviewed by

Jeremy Wolfe — Senior Solar Energy Analyst

Jeremy Wolfe is a solar energy analyst specializing in residential photovoltaic economics, federal and state incentive policy, and return-on-investment modeling for homeowners. He leads EnergyTools' solar research program and methodology.

  • 10+ years analyzing residential solar economics and payback modeling
  • Lead researcher for EnergyTools' 50-state solar cost-per-watt database
  • Author of 100+ solar ROI, payback, and incentive analyses

Methodology & data sources:NREL PVWatts, EPA FuelEconomy.gov, state utility commissions— updated 2026.